Good Morning Friends,
We are Posting Today’s Prelims Marathon
About Prelims Marathon – In this initiative, we post 5 high-quality MCQs daily. Questions are based on the static part of the syllabus. We at ForumIAS believe that practicing quality questions on a daily basis can boost students’ prelims preparation.
For old Archives of Prelims Marathon, Click on “Archives”
Daily Quiz: May 3, 2020
Test-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
Click on ‘Start Test’ button to start the Quiz.
Click Here For More Details on Prelims Marathon
All the Best!
You have already completed the test before. Hence you can not start it again.
Test is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 scores, (0)
Average score | |
Your score | |
Categories
- Not categorized 0%
- Economy 0%
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
- Question 1 of 5
1. Question
1 pointsCategory: Economy“CAMELS” is a technique for evaluating and rating the operations and performance of which of the following?
Correct
Acronym derived from the terms capital adequacy (C), asset quality (A), management (M), earnings (E), liquidity (L) and systems for control (S). The acronym is used as a technique for evaluating and rating the operations and performance of banks all over the world.
Incorrect
Acronym derived from the terms capital adequacy (C), asset quality (A), management (M), earnings (E), liquidity (L) and systems for control (S). The acronym is used as a technique for evaluating and rating the operations and performance of banks all over the world.
- Question 2 of 5
2. Question
1 pointsConsider the following statements with respect to “Debt Recovery Tribunal (DRT)”:
- DRTs were created to facilitate the speedy recovery of debt payable to banks and other financial institutions by their customers.
- DRTs were set up after the passing of SARFAESI Act, 2002.
Which of the following codes below given is/are correct?
Correct
Statement 1 is correct: Debt Recovery Tribunals also known as DRTs were created to facilitate the speedy recovery of debt payable to banks and other financial institutions by their customers. The banks and financial institutions had been facing problems in recovery of loans advanced by them to individual people or business entities. Due to this, the banks and financial institutions started restraining themselves from advancing out loans. There was a need to have an effective system to recover the money from the borrower.
Statement 2 is incorrect: DRTs was set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993.
Incorrect
Statement 1 is correct: Debt Recovery Tribunals also known as DRTs were created to facilitate the speedy recovery of debt payable to banks and other financial institutions by their customers. The banks and financial institutions had been facing problems in recovery of loans advanced by them to individual people or business entities. Due to this, the banks and financial institutions started restraining themselves from advancing out loans. There was a need to have an effective system to recover the money from the borrower.
Statement 2 is incorrect: DRTs was set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993.
- Question 3 of 5
3. Question
1 pointsWhich of the following Statement is NOT correct about “ENGEL’s LAW”?
- The law says that people spend a larger part of their budget on food as their income rises.
- The law says that people spend a smaller part of their budget on luxury items as their income rises.
Choose the correct code from below given options:
Correct
Engel’s Law is an economic theory introduced in 1857 by Ernst Engel, a German statistician, stating that the percentage of income allocated for food purchases decreases as income rises. As a household’s income increases, the percentage of income spent on food decreases while the proportion spent on other goods (such as luxury goods) increases.
Incorrect
Engel’s Law is an economic theory introduced in 1857 by Ernst Engel, a German statistician, stating that the percentage of income allocated for food purchases decreases as income rises. As a household’s income increases, the percentage of income spent on food decreases while the proportion spent on other goods (such as luxury goods) increases.
- Question 4 of 5
4. Question
1 pointsIn economics, “Fisher effect” is the relationship between which of the following variables?
Correct
A concept developed by Irving Fisher (1867–1947) which shows relationship between inflation and the interest rate, expressed by an equation popular as the fisher equation, i.e., the nominal interest rate on a loan is the sum of the real interest rate and the rate of inflation expected over the duration of the loan: R = r + F; where R = nominal interest rate, r = real interest rate and F = rate of annual inflation.
Incorrect
A concept developed by Irving Fisher (1867–1947) which shows relationship between inflation and the interest rate, expressed by an equation popular as the fisher equation, i.e., the nominal interest rate on a loan is the sum of the real interest rate and the rate of inflation expected over the duration of the loan: R = r + F; where R = nominal interest rate, r = real interest rate and F = rate of annual inflation.
- Question 5 of 5
5. Question
1 pointsConsider the following statements with respect to “Local Area Banks (LABs)”:
- LABs were created to bridge the gaps in credit availability and enhance the institutional credit framework in the rural and semi-urban areas.
- The minimum start-up capital of a Local Area Bank was fixed at Rs.5 crore.
Which of the following above statements is/are correct?
Correct
Statement 1 is correct: In 1996 it was decided to allow the establishment of local banks in the private sector. These banks were expected to bridge the gaps in credit availability and enhance the institutional credit framework in the rural and semi-urban areas and provide efficient and competitive financial intermediation services in their area of operation.
Statement 2 is correct: The minimum start-up capital of a LAB was fixed at Rs.5 crore. The promoters of these banks were required to bring in the entire minimum share capital up-front. It was also decided that a family among the promoter group could hold equity not exceeding 40% of the capital. The NRI contributions to the equity of the bank were not to exceed 40% of the paid-up capital.
Incorrect
Statement 1 is correct: In 1996 it was decided to allow the establishment of local banks in the private sector. These banks were expected to bridge the gaps in credit availability and enhance the institutional credit framework in the rural and semi-urban areas and provide efficient and competitive financial intermediation services in their area of operation.
Statement 2 is correct: The minimum start-up capital of a LAB was fixed at Rs.5 crore. The promoters of these banks were required to bring in the entire minimum share capital up-front. It was also decided that a family among the promoter group could hold equity not exceeding 40% of the capital. The NRI contributions to the equity of the bank were not to exceed 40% of the paid-up capital.
Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants
Subscribe to get the latest posts sent to your email.