De Crd) Banking and Financial Institutions Questions ea ny tania) Start Complete Exam Preparation eRe cosr aes eo Elec Deere resid D> Download App Question 1: View this Question Online > Paez Which of following explains the term "Grace Period’ in insurance? 1 , It isa period after the premium due dete, during which an overdue premium may be paid including 5% of the penalty. 2 (Sun, @ It is period after the premium due dete, during which an overdue premium may be paid without penalty. — 3. Itis.a period after the premium due dete, during which an overdue premium may be paid including penalty. 418? a period after the premium due date, during which an overdue premium may be paid including 25% of the penalty. 5. Not Attemptedterol iis} India's Super Teachers for all govt. exams Under One Roof Cees Answer (D Option 2: Itis a period after the premium due date, during which an overdue premium may be paid without penalty. Banking and Financial Institutions Question: Detailed Solution The correct answer is It is a period after the premium due date, during which an overdue premium may be paid without penalty. + Grace Period ~ It is a period after the premium due date, during which en overdue premium may be paid without penalty. The policy remains in force throughout this period. + Some other terms are: + Indemnity- Indemnity means making compensetion payments to one party by the other for the loss occurred. + Keyman Insurance Policy ~ It is alife insurance policy taken by a person on the life of another person who is or was his employee/connected to his business in any manner whatsoever. India's #1 Learning Platform Start Complete Exam Preparation Pre easy POR eared freeing D> Download App Question 2: Comprehension: Cece Peace picts \ md 7Read the following passage and answer the question: “,* » ‘The Securities and Exchange Board of India (SEB!) ha measures to curb market manipulation and insider trading in the Indian financi: . SEBI has increased surveillance and monitoring of trading activities in the stock market to irtegularities and punish violators. The regulator has also introduced regulation: he use of unpublished price-sensitive information by insiders for trading SEBI has also imposed bans on trading activit that violate SEBI's informatio market. compliance with rules and regulations, including fines and aities apply to individuals, companies, and market intermediaries n, SEBI has made it mandatory for companies to disclose ancials, management, and shareholding to promote transparency in the some market participants have criticised SEBI's measures, arguing that they are too harsh iscourage legitimate trading activities. They also argue that SEBI's focus on enforcement may not be sufficient to promote market development and attract new investors. In response, SEB! has. reiterated that its actions are aimed at ensuring fair and transparent trading practises, which are essential for the long-term growth and stability of the Indian financial market What can be the title of the passage? 1. SEBI's Measures to Ensure Fair and Transparent Trading Practices in the Indian Financial Market 2. Market Manipulation and Insider Trading in the Indian Financial Market 3. Criticism of SEBI's Measures to Curb Market Manipulation and Insider Trading 4. The Impact of SEBI's Regulations on Market Development and Investor Attraction com Answer (Detailed Solution Below) e Option 1 : SEBI's Measures to Ensure Fair and Transparent Trai e@@-. Indian Financial Market Banking and Financial Institutions cvston 20d ay » Important Points + The passage discusses the measures taken by SEBI to curb market manipulation and insider trading in the Indian financial market. + These measures include increased surveillance and monitoring of trading activities, regulations restricting the use of unpublished price-sensitive information, penalties for non-compliance with rules end regulations, and mandatory disclosure of financial and management information by companies. + The passage also mentions criticism of SEBI's measures and SEBI's response to this criticism* Therefore, the most appropriate title for the passage would be SEBI's Measures to Ensure Fair and Transparent Trading Practices in the Indian Financial Market. Cd India’s #4 Learning Platform Start Complete Exam Preparation Pua aeacd Pcie Creer Question 3: View this Question Online > Comprehension: Read the following passage and answer the question: The Securities and Exchange Board of India (SEB!) hes taken several measures to curb market manipulation and insider trading in the indian financial market. SEBI has increased surveillance and monitoring of trading activities in the stock market to identify irregularities and punish violators. The regulator has also introduced regulations that restrict the use of unpublished price-sensitive information by insiders for trading purposes. SEBI has also imposed penalties for non-compliance with rules and regulations, including fines and bans on trading activities. The penalties apply to individuals, companies, and market intermediaries that violate SEEI’s rules. In addition, SEBI has made it mandatory for companies to disclose information about their financials, management, end shareholding to promote transparency in the market. \ However, some market participants have criticised SEBI's measures, arguing that they are too harsh and may discourage legitimate trading activities. They also argue that SEBI's focus on enforcement may not be sufficient to promote market development and attract new investors. In response, SEB! has feiterated that its actions are aimed at ensuring fair and transparent trading practises, which are essential for the long-term growth and stability of the Indian financial market. “Given below are two statements: One is labelled as Assertion A and the other Is labelled as Reason R: Assertion A: SEB| has increased surveillance and monitoring of trading activities in the Indian stock market to identify irregularities and punish violators. Reason R: The use of unpublished price-sensitive information by insiders for trading purposes has been restricted by SEBI Inthe light of the above statements, choose the most appropriate answer from the options given below: 1. Both Assertion and Reason are true, and Reason (R) is the correct explanation of Assertion (A)2. Both Assertion and Reason are true, and Reason (R) is not the correct explanation of Assertion (A) 3. Assertion (A) is True, but Reason (R) is False 4. Assertion (A) is False, but Reason (R) is True’ Answer (Detailed Solution Below) Option 1 : Both Assertion and Reason are true, and Reason (R) is the correct explanation ue \i o (A) Banking and Financial Institutions Question 3 Detailed “0 » Important Points e? Assertion A: SEB! has increased sury monitoring of trading activities in the Indian stock market to identify irregularities and pun as Reason R: The use of unpublished price-sensitive information by insiders for trading purposes has been restricted by SEBI Explanation: The passage clearly states that SEB! has increased surveillance and monitoring of trading activities in the Indian stock market to identity irregularities and punish violators. This is mentioned in the first paragraph of the passage. + The reason given in the question is also mentioned in the same paragraph, where it is stated that SEBI has introduced regulations that restrict the use of unpublished price-sensitive information by insiders for trading purposes. + Thus, both the assertion and reason are true, and the reason explains the assertion. + SEBI has taken measures to curb market manipulation and insider trading, which includes increasing surveillance and monitoring of trading activities and restricting the use of unpublished price-sensitive information by insiders.ea eo Treen ecru) SS Ea ery ele LiCl) Cee arc esan Oras aren Py CCS cielo Question Bank exer 22 Question 4: View this Question Online > Comprehension: on Read the following passage and answer the question: The Securities and Exchange Board of India (SEBI) has taken several measures to curb market manipulation and insider trading in the indian financial market. SEB! has increased surveillance and monitoring of trading activities in the stock market to identify irregularities and punish violators, The regulator has also introduced regulations that restrict the use of unpublished price-sensitive sinigrmation by insiders for trading purposes. _ SEBMhas also imposed penalties for non-compliance with rules and regulations, including fines and bans on trading activities. The penalties apply to individuals, companies, and market intermediaries that violate SEBI's rules. In addition, SEB has made it mandatory for companies to disclose information about their financials, management, and shareholding to promote transparency in the market. However, some market participants have criticised SEBI's measures, arguing that they are too harsh and may discourage legitimate trading activities. They also argue that SEBI's focus on enforcement may not be sufficient to promote market development and attract new investors. In response, SEB! has reiterated that its actions are aimed at ensuring fair and transparent trading practises, which are essential for the long-term growth and stability of the Indian financial market Which of the following statements best reflects the potential long-term impact of SEBI's measures on the Indian financial market? 1, SEBI's measures will lead to increased market development and attract new investors. 2. SEBI's measures will discourage insider trading but may also have unintended consequences for ‘the market. 3. SEBI's measures will be ineffective at curbing market manipulation and insider trading, 4. SEBIs measures will have a negative impact on the overall stability of the Indian financial market.Answer Option 2: SEBI's measures will discourage insider trading but may also have unintended consequences for the market Banking and Financial Institutions Question 4 Detailed Solution The correct answer is SEBI's measures will discourage insider trading but may also have unintended consequences for the market. Important Point + While SEBI's measures to curb market manipulation and insider trading are aimed at ensuring fair and transparent trading practices, some market participants have expressed concerns that they may also have unintended consequences for the market. + For example, they argue that the measures may discourage legitimate trading activities and that SEBI's focus on enforcement may not be sufficient to promote market development and attract new investors. + This suggests that while SEBI's measures are likely to discourage insider trading, they may also have unintended consequences that need to be considered. Ro ee ann parity Start Complete Exam a Rr mr eres Pear eed Bite ere rug Download App Question 5: View this Question Online > Comprehension: Read the following passage and answer the question: The Securities and Exchange Board of India (SEBI) has taken several measures to curb market manipulation and insider trading in the indian financial market. SEBI has increased surveillance and monitoring of trading activities in the stock market to identify irregularities and punish violators. The regulator has also introduced regulations that resirict the use of unpublished price-sensitive information by insiders for trading purposes SEBI has also imposed penalties for nov-compliance with rules and regulations, including fines and bans on trading activities. The penalties apply to individuals, companies, and market intermediaries that violate SEBI's rules. In addition, SEB! has made it mandatory for companies to disclose information about their financials, management, and shareholding to promote transparency in the marketianeer me market participants have criticised SEBI's measures, arguing that they are too harsh and may discourage legitimate trading activities. They also argue that SEBI's focus on enforcement may not be sufficient to promote market development and attract new investors. In response, SEBI has reiterated that its actions are aimed at ensuring fair and transparent trading practises, which are essential for the long-term growth and stability of the Indian financial market. What is the concern of some market participants regarding SEBI's measures? 1. They may discourage legitimate trading activities 2. They may not be sufficient to promote market development 3. They may increase surveillance and monitoring of trading activities. 4, They may restrict the use of unpublished price-sensitive information by insiders for trading purposes. Answer (Detailed Solution Below) oo . Option 1 : They may discourage legitimate trading aS Banking and Financial Institutions Questi Rian The correct answer is "They may discourage legitimate trading activities" » \mportant Points + The concern of some market participants regarding SEBI's measures is that "they are too harsh and may discourage legitimate trading activities. They also argue that SEBI's focus on enforcement may not be sufficient to promote market development and attract new investtatad (athe passage). + The passage mentions that some market participants have criticized SEBI's measures, suggesting that they may discourage legitimate trading activities. + They also argue that SEBI's focus on enforcement may not be enough to attract new investors and promote market development. ‘Top Banking and Financial Institutlons MCQ Objective QuestionsIndia’s #1 Learning Platform Start Complete Exam Preparation Gene oa be Poca reser Download App & Quizzes Question 6 = View this Question Online > How many banks were nationalized in india on 15t" April 1980 ? Answer (Detailed Solution Below) Option 3: 6 Banking and Financial Institutions Question 6 Detailed Solution The correct answer is 6. © Key Points * Six indian banks were nationalized on 15t* April 1980. + Nationalization isthe transfer of ownership and management ‘of an undertaking from private hands to the states. + Banks were nationalized in India through an ordinance passed in the year 1969. + Indira Gandhi was the prime minister who nationalized banks in India, * The first nationalization of banks took place on 19% July 1969. © 14 banks were nation: in 1969, « It was based on the ban! ose deposit exceeds Rs. 50 crores.* The second time government nationalized banks on 15** April 1980. » 6 banks were nationalized in 1980. = It was based on the banks whose deposit exceeds Rs. 200 crores. A, Mistake Points + Most of the nationalized banks in India are also referred to as ‘public sector banks’. + after the merger of many banks, currently there are a total of 12 public sector banks in India including the State Bank of India (based on the RBI official website). Fc India's #1 Learning Platform STE la metic Clee) Cie Dan Aurea, Drea Cree aru Download App aes os iets a Ete Question 7 ~ View this Question Online > The first Regional Rural Bank was established in India in the year: 1. 1991 2. 1975 3.1982 Answer (Detailed Solution Below) Option 2: 1975, Banking and Financial Institutions Question 7 Detailed Solution The correct answer is 1975. * The first Regional Rural Bank was established in India in the year 1975, gy© Key Points + Regional Rural Banks: » The Regional Rural Banks (RRBs) are the newest form of banks that came into existence since the middle of the 1970s. > It was sponsored by individual nationalised commercial banks with the objective of developing the rural economy by providing crediting and depositing facilities for agriculture and other productive activities of all kinds in rural areas. » Regional Rural Banks (RRBS) were setup under the terms of the 26 September 1975 ordinance and the .ct of 1976. » First Regional Rural 's established on 2 October 1975. » The Prathama Bank of Moradabad, Uttar Pradesh was the first RRB. > Currently, there are 43 RRBs In India. Additional Information + Oudh Commercial Bank was the first complete Commercial Bank of India. + The Imperial Bank was established in the year 1921 by merging three main Presidency Banks. > It was later rechristened as State Bank of India In 1955. + Nationalisation of Banks was done in 1969. ea see Start Complete Exam Preparation (Sees Question 8 View this Question Online > Which of the following banks has offered $68 million in funding to IIFL Home Finance for expanding footprint in the affordable and green housing segment in February 2022? 1. Asian Development Bank fi 2. World Bank a? 3. ABT@iiJnfrastructure Investment Bank 4. International Monetary FundAnswer (Detailed Solution Below) Option 1 : Asian Development Bank Banking and Financial Institutions Question 8 Detailed Solution The correct answer is Asian Development Bank. © Key Point + The Asian Development Bank has offered $68 million in funding to lIFL Home Finance for expanding its footprint in the affordable and green housing segment. * The funding comprises a direct ADB loan of $58 mullon and another $10 million concessional loan from the Canadian Climate Fund. * This is IIFL Home Finance's first loan from: ADBor any other development finance institution. ; Additional Information 7 + The Asian Development DB) provided arecord USD 4.6 billion loans to India in 2021, including USD 1.8 billion coronavirus response. + USD 15 billion was towards vaccine procurement and USD 300 million to strengthen primary health care in urban areas and the country's future pandemic preparedness. + The agency extended a USD 2.2-billion support for 12 state projects. + The Asian Development Bank is a regional development bank established on 19 December 1966. + The Asian Development Bank: » Headquarters: Mandaluyong, Philippines » President: Masatsugu Asakawa (As of Feb 2022) » Membership: 68 countries » Founded: 19 December 1966 ‘2 Py ei anec an Roe cia) See Cum iL) 5 Daily Live eae Ta poets Hetil ees Download App Question 9 : \, “View this Question Online Where is the corporate office of RBL Bank located? _ 1. Srinagar os D4. Bengaluru Answer (Detailed Solution Below) Option 3 : Mumbai Banking and Financial Institutions Question 9 Detailed Solution The correct answer is Mumbai. © Key Points , - + RBL Bank, formerly known as Ratnakar Bank, is an Indian private sector bank headquartered in Mumbai. 0} + It was founded on 6th August 1943 with two branches in Kolhapur end Sanali founded by Babgonda Bhujgonda Patil from Sangli & Gengappa Siddappa Chougule from Kolhapur. + RBL bank received the banking license from the Reserve Bank of India in the year 1970. + In August 2014, the name of the bank was changed to RBL Bank Limited. & Additional informallam, + The current MD and CEO of the bank as of October 2021 is Mr Vishwavir Ahuja. + The bank provides the following facilities: © corporate and institutional banking » commercial banking » branch and business banking = retail assets » development banking and financial inclusion > treasury and financial market operations Teer nae lt Rear eter Start Complete Exam Prepara cy } PaO ered MasterClas Cresiearrng Download AppQuestion 10 & - ——— e Which of the following banks is the é ercial bank in India? NO 1. State Bank of India 2. ICICI Bank XS Kk 3. Uni jant 4. Bank of India ‘Answer (Detailed Solution Below) Option 1: State Bank of India Banking and Financial Institutions Question 10 Detalled Solution The correct answer is State Bank of India. O © Key Points XO State Bank of India: + SBlis the largest cor ia! bar \dia. SBI stands for State Bank of India. It is a public sector bank. Its heal « |s situated in Mumbai, Maharashtra + itis the largest com nk in India. + Tag-line - Pure banking nothing else; With you all the way; The Nation banks on us; A Bank to the common man; A banker to every Indian. + The latest Tagline of SBI is “Bade Bank Ke Bade Fayade" + Headquarters: Mumbai, Maharashtra * State Bank of India (SB) is an Indian multinational, public sector banking and financial services statutory body headquartered in Mumbal, Maharashtra.ES India’s #1 Learning Platform eater Start Complete Exam Preparation Ora aeaucd acc cd CPs cere reser xriza? Question 11 The main function of NABARD 1. Granting crop loan to farmers 3. Providing rural employment 4. Facilitating credit flow for promotion and development of agriculture ‘Answer (Detailed Solution Below) Option 4 : Facilitating credit flow for promotion and development of agriculture eee View this Question Online >A ee ea ec Start Complete Exam Preparation rae Picco eyes aad olen Question Bank Download App Ex 22 Question 12 Which of the following is NOT a public sector insurance company? 1. United india Insurance Company 2. The New India Assurance Company Limited 3. SBI Life Insurance 4. General Insurance Corporation of India ‘Answer (Detailed Solution Below) ir yeeteon ao ea 1 iba Ices areas Rear ean View this Question Online >India’s #1 Learning Platform Start Complete Exam Preparation Gene oa be Poca reser Download App & Quizzes Question 13, View this Question Online > In India, commercial banks have the highest share in the disbursement of credit to 1. Moneylenders 2. PSUs 3. Agriculture 4. Microfinance ‘Answer (Detailed Solution Below) Option 3: Agriculture& eee eo ic Start Complete Exam Preparation ca } Por ee See haa researc Exot Download App Question 14 View this Question Online As of july 2021 who is the Chief Economist of the International Monetary Fund? 1. Krishna Bhardwaj 2. Montek Singh Ahluwalia 3. Gita Gopinath 4. Raghuram Rajan Answer (Detailed Solution Below) Option 3 : Gita Gopinath& ee aun parca) Rear ran Start Complete Exam Preparation Or eurs raed ea POs Creag pees Download App Question 15 View this Question Online > The Life Insurance Corporation of India Act was passed by the Parliament in the year 1. 1956 2. 19483. 1971 4. 1965 Answer (Detailed Solution Below) Option 1: 1956