1. What does Deficit financing mean?
a) Government of India borrows from World Bank
b) Government of India borrows from IMF 
c) Government of India borrows from SBI
d) Government of India borrows from RBI



 2. RBI known as lender of last resort because:
a) It has to meet the credit need of citizens to whom no one else is willing to lend
b) Banks lend to go to RBI as a last resort
c) It comes to help banks in times of crisis
d) All of the above

3. These days RBI uses Selective credit control measures rather infrequently because of:
a) Deregulation of functions
b) Autonomy given to banks
c) Comfortable liquidity
d) All the above


4. Which is incorrect with regard to powers of RBI:
a) Holds cash reserve banks
b) Controls banking system through licensing
c) Supervises Banking system through inspection
d) None of the above


5. Who intervenes in markets to maintain the external value of the Indian rupee:
a) Exporters
b) Importers
c) RBI
d) IMF


6. In India, forex rates are determined by:
a) Importers
b) Exporters
c) RBI
d) Demand and supply forces


7. Regional Rural Banks were set up on the recommendations of:
a) Nariman committee
b) Narasimham committee
c) Gadgil committee
d) Puri committee


8. Committee, launched the process of reforms of financial system in India:
a) Gadgil committee
b) Nariman committee
c) Narasimham committee
d) khanna Committee


9. Which of the following can be categories as a Merchant Banking service?
a) Consultancy on finance to a company
b) Advance in capital structure
c) Managing mergers & in finalizing take over
d) All the above


10. The instrument which provides proprietary interest in company and which entitles a person to dividend on profits, is called?
a) Bond
b) Share
c) Debenture
d) Warrant


11. Which of the following provides proper definition of a Mutual Funds?
a) It is an association of members of public
b) These members want to invest in financial instrument
c) They want to invest in financial instrument assets of business sector
d) All the above


12. Which of the following organizations/agencies works solely to monitor and arrange flow of agriculture credit in India?
a)NABARD
b) SIDBI
c) RBI
d)SEBI


13. The currency notes of which of the following denominations are not printed in India?
a) Rs. 5
b) Rs. 10
c) Rs. 50
d) Rs. 2500


14. Which of the following is not the name of a bank functioning in India?
a) Central Bank of India
b) UCO Bank
c) Aegon Religare
d) Dena Bank


15. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as: a) Term Deposit
b) Demand Deposit
c) Bond
d) Mortgage