Economics Questions for IAS Prelims - Set 5
1. Increase in Bank Ratea) increases the cost of borrowing by commercial banks
b) declines the supply of money
c) shows tightening of RBI monetary policy
d) all the above
View Answer / Hide AnswerANSWER: d) all the above
Bank rate is the rate at which a central bank is ready to buy or rediscount bills of exchange or other commercial papers. It also signals the medium-term stance of monetary policy. When bank rate is raised, it is expected that all interest rates will move together in the same direction.
1. Removed limit for minimum capital required for formation
2. If a firm fails to repay the deposit or any interest it will be punishable with fine
3. All cases under the Companies Act cannot be tried by a special court and that only serious offenses will go to such courts
Which of the above statements is/are incorrect?a) 1,2
b) 2,3
c) 1,3
d) All
View Answer / Hide Answer3. Consider the following statements1. The Reserve Bank of India has asked all public sector banks, some private sector and foreign banks to appoint an internal ombudsman.
2. The internal ombudsman would be designated Chief Customer Service Officer (CCSO).
3. RBI has also made it clear that the CCSO should not have worked in the bank in which he/she is appointed as CCSO.
Which of the above statements are true?a) 1,2
b) 2,3
c) 1,3
d) All the above
View Answer / Hide AnswerANSWER: d) All the above
All public sector banks will have to appoint a Chief Customer Service Officer.
The private sector and foreign banks which have been asked to appoint the CCSO are ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Standard Chartered Bank, Citi Bank N.A. and HSBC.
The Reserve Bank introduced the Banking Ombudsman Scheme (BOS) in 1995 to provide an expeditious and inexpensive forum to bank customers for resolution of their complaints relating to deficiency in banking services provided by commercial banks, regional rural banks and scheduled primary co-operative banks.
a) RBI
b) Central government
c) State governments
d) SEBI
View Answer / Hide AnswerANSWER: c) State governments
Chit funds in India are governed by the Chit Funds Act, 1982. Under this Act, the chit fund businesses can be registered and regulated only by the respective state governments
1. It is the only public sector bank in the country entirely owned by the government
2. This bank works exclusively for women
Which of the above statements is/are correct?a) Only 1
b) Only 2
c) Both
d) None
View Answer / Hide AnswerANSWER: a) Only 1
Although initially reported as a bank exclusively for women, the bank allows deposits to flow from everyone, but lending will be predominantly for women
1. India allows 100% FDI in single-brand stores but imposed the requirement that the single brand retailer source 30 percent of its goods from India.
2. Government of India allowed 100% FDI in multi-brand retail in India after approval from individual state
Which of the above statements is/are correct?a) Only 1
b) Only 2
c) Both
d) None
View Answer / Hide AnswerANSWER: c) Both
Government of India allowed 51% FDI in multi-brand retail in India after approval from individual state
1. RBI allowed Infrastructure Debt Fund-Non-Banking Financial Companies to invest in public-private partnerships (PPPs) and infrastructure projects which have completed at least one year of satisfactory commercial operation.
2. The maximum exposure that an IDF-NBFC can take on individual projects will be at 50 per cent of its total capital funds.
3. An additional exposure up to 10 per cent could be taken at the discretion of the board of the IDF-NBFC.
Which of the above statements are correct?a) 1,2
b) 1,3
c) 2,3
d) All
View Answer / Hide AnswerANSWER: d) All
The RBI could permit additional exposure up to 15 per cent (over 60 per cent) “subject to such conditions as it may deem fit to impose regarding additional prudential safeguards.â€
a) Lender
b) Borrower
c) Both
d) None
View Answer / Hide AnswerANSWER: b) Borrower
Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. Inflation redistributes wealth from creditors to debtors so borrower gets benefits from inflation
