UPSC Prelims Marathon 25th March – Banking in India – 2024

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We are posting prelims marathon MCQs for today. In this initiative, you can attempt 10 subjective MCQs daily. Daily Quiz UPSC Prelims Marathon 25 Mar Banking in India

 For schedule, refer to the archive link given below. Best UPSC institute In Delhi,

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Correct Answer : 2

Wrong Answer : -0.66

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Question No. 1

Which of the following activity/activities is/are taken by NBFCs (Non-Banking Financial Companies)?
1.Making loans and advances
2.Leasing
3.Construction of immovable property
How many of the statements given above are correct?

AOnly one

BOnly two

COnly three

DNone

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Question No. 2

Under which of the following act, Reserve Bank of India was set up?

AGovernment of India Act, 1919

BRBI Act, 1934

CRBI Act, 1949

DNationalization of Banks Act, 1969

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Question No. 3

Which of the following is/are function/s of Reserve Bank of India?
1.Issuing agency of the currency and coins other than rupee one currency
2.Distributing agent for currency and coins issued by the Government of India.
3.Banker of the government.
How many of the statements given above are correct?

AOnly one

BOnly two

COnly three

DNone

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Question No. 4

“It is the ratio of the total deposits of a bank in India which is kept with the RBI in the form of cash”?

ACash Reserve Ratio

BStatutory liquidity ratio

CBank Rate

DMarginal Standing Facility

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Question No. 5

Which of the following is/are come/s under the definition of Statutory Liquidity Ratio (SLR)?
1.Cash
2.Gold
3.Treasury Bills of the Government of India
How many of the statements given above are correct?

AOnly one

BOnly two

COnly three

DNone

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Question No. 6

Who among the following institution/s borrow through Bank Rate is/are?
1.Government of India
2.Cooperative Banks
3.NBFC’s
How many of the statements given above are correct?

AOnly one

BOnly two

COnly three

DNone

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Question No. 7

Consider the following statements regarding “Repo Rate”:
1.It is the rate of interest the RBI charges from its clients on their short-term borrowing.
2.The Call Money Market of India operates at this rate.
Which of the statements given above is/are incorrect?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Question No. 8

Consider the following statements regarding “reverse repo rate”:
1.It is the rate of interest the RBI pays to its clients who offer short-term loan to it.
2.It was started in November 1996 as part of the liquidity Adjustment Facility by the RBI.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Question No. 9

Under which of the following “banks can borrow overnight upto 1 per cent of their net demand and time liabilities (NDTL) from the RBI, at the interest rate 1 per cent (100 basis points) higher than the current repo rate”?

ABank Rate

BMarket Sterilization Scheme

CMarginal Standing Facility

DOpen Market Operations

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Question No. 10

Consider the following statements regarding “Open Market Operations”:
1.It is conducted by the department of financial services.
2.Its primary aim is to modulate rupee liquidity conditions in the market.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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