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Indian Economy Test
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Indian Economy Test 15
Read Instructions for the test.
Negative marks are -0.33 per wrong answer
Right answer is 1 mark
No time limit but finish in 30 mins
Solution can be found at below chapters:
Test series is based on following chapters.
Indian Economy Chapter 6: FINANCE
Indian Economy Chapter 6: FINANCE PART 2
Q1: Wholesale Banks
Only accept deposits > Rs. 5 crore.
CRR, SLR present. Can give loans only to infrastructure and corporates.
Q2: Custodian Bank
safeguarding of securities, derivatives, metals, commodities, foreign currency etc
Keep client informed about yield, AGM
Execute deals for clients.
Q3: Key performance indicators to link performance of CEO / MD of PSB with bonus - under which scheme.
Monetary policy framework
Q4: Monetary policy framework committee to have
6 members i.e. 3 from RBI [RBI Governor, RBI Deputy governor and RBI executive director]
3 from Govt of India.
The chief shall be RBI governor and decisions shall be made by majority.
Q5: Which is true ?
RBI has set the target of 75% Priority sector lending for Regional rural banks
The PSL target for foreign banks with <20 branches to be increased to 40% from current 32%.
National Payments corporation of India created the Unified Payment Interface from 1-4-2016
Q6: Foreign Investment Promotion Board
It is under the Dept of Economic Affairs under the Finance ministry
Rs 1200 crore is the limit for clearance and beyond that the cabinet committee on economic affairs handles.
Q7:GIFT [Gujarat International Financial Tech] City, Gandhinagar, Gujarat
GIFT city has two shareholders Gujarat Urban development cooperative ltd and International leasing & financial services ltd.
ILFS is a company where shareholders are commercial banks SBI, HDFC, insurance companies and RBI.
It is a greenfield project with SMART city like facilities.
Q8:Features of GIFT city are
All investors are treated as NRI outside India for tax purposes
Invest in hedge funds and mutual funds in foreign currency only.
NSE to setup international exchange for trading equities.
Q9: Features of GIFT city are
Foreign banks and Indian banks with foreign presence can setup only 1 unit.
They cant take rupee deposits or retail customers.
CRR, SLR limits are there.
Q10: Sovereign Gold Bonds
SGB's have a 8 year maturity period and were launched during the Budget 2015.
Launched to reduce India's dependence on imported gold and lower current account deficit.
Q11: Features of sovereign gold bonds are
Can be purchased by resident citizens. 2 -500 gm per person per year.
No capital gains if redeemed at maturity.
2.75% compound interest half yearly.
Q12: Criticism of sovereign gold bonds
Interest rate too low and lockin period very high.
Less returns compared to small savings instruments.
Q13: Gold Monetization Scheme
Resident Citizens can avail scheme by depositing 30gm min wit no upper limit in BIS certified collection, purity,testing centers.
The gold savings account in ICICI bank can be availed. Denomination in gm.
Scheme has three tenures: short [1-3 yrs] where cash / gold can be redeemed; medium [5-7yrs] where cash can be redeemed; 12-15 yrs where cash can be redeemed.
Q14: Twin deficit problem is high
fiscal deficit and high current account deficit.
revenuedeficit and high current account deficit.
fiscal deficit and high capital account deficit.
Q15: JAPAN PLUS is for
team of Indian and Japanese representatives who fast track investments of Japan in India
it operates under DIPP, Commerce ministry.
both a and b
bullet train project of japan
Q16: Offshore rupee bonds, tenure 15 yrs. Finance to both private and public companies are
Q17: Maharaja bonds
Better rating than Govt of India bonds but lower interest rate
Rupee denominated. Tenure is 5 / 10 years. Issued within India's domestic financial market.
Q18: White Label ATM's
These are owned and operated by third party owners. They have their own brand and not the brand of any bank.
Non banking financial corporations have been allowed by RBI to setup White Label ATM's.
Q19: India's first International financial center is at
Q20: International Monetary Fund
The IMF was formed after the Bretton Woods conference in 1944 in USA
The main function of IMF is to help members overcome balance of payments crisis.
Q21:Structure of IMF is
Board of Directors
Q22: World Trade Organization
It succeeded the General Agreement on Trade and Tariff , an organization set up as part of the Bretton woods conference
The WTO was established in 1995 after Uruguay talks
India was a founding member. HQ - Geneva, Switzerland.
Q23: Structure of WTO
Ministerial Conference - 164 members; Meets every 2 years.
General council - Daily work of implementing decisions; Has representatives of all members.
Secretariat - Headed by Director general with a 4 year term.
Q24:10th meeting of WTO was in ____ first time in an African country.
Q25:Functions of WTO
Lower barriers to trade i.e. tariff and non tariff.
Least developed countries get benefit of world trade
Deliberate on trade agreements to achieve above objectives.
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