Banking One Mark Online Test — Class 12 Economics

Banking One Mark Online Test (12th Standard Economics)

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A Bank is a

A.Financial institution B.Corporate C.An Industry D.Service institutions

A Commercial Bank is an institution that provides services

A.Accepting deposits B.Providing loans C.Both a and b D.None of the above

The Functions of commercial banks are broadly classified into

A.Primary Functions B.Secondary functions C.Other functions D.a, b, and c

Bank credit refers to

A.Bank Loans B.Advances C.Bank loans and advances D.Borrowings

Credit creation means.

A.Multiplication of loans and advances B.Revenue C.Expenditure D.Debt

NBFI does not have.

A.Banking license B.government approval C.Money market approval D.Finance ministry approval

Central bank is --------------- authority of any country.

A.Monetary B.Fiscal C.Wage D.National Income

Who will act as the banker to the Government of India?

A.SBI (State Bank of India) B.NABARD C.ICICI D.RBI

Lender of the last resort is one of the functions of.

A.Central Bank B.Commercial banks C.Land Development Banks D.Co-operative banks

Q10

Bank Rate means.

A.Re-discounting the first class securities B.Interest rate C.Exchange rate D.Growth rate

Q11

Repo Rate means the

A.Rate at which the Commercial Banks are willing to lend to RBI B.Rate at which the RBI is willing to lend to commercial banks C.Exchange rate of the foreign bank D.Growth rate of the economy

Q12

Moral suasion refers.

A.Optimization B.Maximization C.Persuasion D.Minimization

Q13

ARDC started functioning from

A.June 3, 1963 B.July 3, 1963 C.June 1, 1963 D.July 1, 1963

Q14

NABARD was set up in.

A.July 1962 B.July 1972 C.July 1982 D.July 1992

Q15

EXIM bank was established in.

A.June 1982 B.April 1982 C.May 1982 D.March 1982

Q16

The State Financial Corporation Act was passed by

A.Government of India B.Government of Tamilnadu C.Government of Union Territories D.Local Government

Q17

Monetary policy is formulated by

A.Co-operative banks B.Commercial banks C.Central Bank D.Foreign banks

Q18

Online Banking is also known as

A.E-Banking B.Internet Banking C.RTGS D.NEFT

Q19

Expansions of ATM

A.Automated Teller Machine B.Adjustment Teller Machine C.Automatic Teller mechanism D.Any Time Money

Q20

2016 Demonetization of currency includes denominations of

A.₹500 and ₹1000 B.₹1000 and ₹2000 C.₹200 and ₹500 D.All the above

Q21

Which bank is considered the world's first finance-lending bank, established in 1157?

A.The Bank of England B.The Bank of Venice C.The Ricks Bank of Sweden D.The Bank of Hindustan

Q22

Which is the oldest central bank in the world, springing from a private bank established in 1656?

A.The Bank of England B.The Ricks Bank of Sweden C.The Federal Reserve Bank D.The South African Reserve Bank

Q23

In India, the three Presidency Banks of Bengal, Bombay, and Madras were merged in which year to form the Imperial Bank of India?

A.1806 B.1921 C.1935 D.1955

Q24

The Imperial Bank of India was transformed into which of the following banks in 1955?

A.Reserve Bank of India B.State Bank of India C.Bank of Hindustan D.Indian Bank

Q25

Why do commercial banks generally avoid providing long-term credit options?

A.Because of low interest profit rates B.To maintain the liquidity of their assets C.To adhere to central bank printing limits D.Due to high statutory reserve requirements

Q26

Which of the following is classified as a primary function of commercial banks?

A.Providing safe locker facilities B.Underwriting corporate securities C.Accepting public deposits D.Dealing in foreign exchange

Q27

When a bank creates a deposit in favor of a borrower without any prior payment of equivalent cash by the customer, it is known as a:

A.Primary deposit B.Passive deposit C.Derived deposit D.Time deposit

Q28

If all commercial banks are obliged to keep a minimum cash-to-deposit ratio of 20 percent, what is the value of the money multiplier?

A.2 B.4 C.5 D.10

Q29

Non-Banking Financial Institutions (NBFIs) are broadly classified into which two categories?

A.Commercial Banks and Co-operative Banks B.Stock Exchange and Other Financial Institutions C.Primary Societies and Central Co-operative Banks D.Central Bank and Sponsoring Banks

Q30

In which years did the Reserve Bank of India (RBI) commence its operations and get nationalised respectively?

A.Commenced in 1935, nationalised in 1949 B.Commenced in 1934, nationalised in 1947 C.Commenced in 1947, nationalised in 1955 D.Commenced in 1935, nationalised in 1969

Q31

Who was appointed as the first Governor of the Reserve Bank of India in 1935?

A.C.D. Deshmukh B.Osborne Smith C.James Braid Taylor D.Sir Benegal Rama Rau

Q32

Which of the following statements is true regarding the relationship between the Repo Rate (RR) and the Reverse Repo Rate (RRR) in India?

A.The Repo Rate is always equal to the Reverse Repo Rate. B.The Repo Rate is always greater than the Reverse Repo Rate. C.The Repo Rate is always less than the Reverse Repo Rate. D.The Repo Rate is always exactly half of the Reverse Repo Rate.

Q33

Regional Rural Banks (RRBs) were set up in India in which year to liquidate rural indebtedness and provide institutional credit?

A.1963 B.1975 C.1982 D.1995

Q34

What is the share capital subscription ratio in Regional Rural Banks (RRBs) among the Central Government, State Government, and sponsoring commercial bank respectively?

A.50%, 15%, 35% B.50%, 35%, 15% C.35%, 15%, 50% D.15%, 35%, 50%

Q35

In July 1982, which institution was set up to take over the refinancing functions of the RBI and the ARDC in relation to co-operative banks and RRBs?

A.IFCI B.SIDCO C.NABARD D.EXIM Bank

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About this Banking test

This free online practice test covers Banking from the 12th Standard Economics (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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