Economics Multiple Choice Questions – Chapter 8 – Commercial Banks

Economics Multiple Choice Questions, which are covered in this chapter, relate to the topic, Commercial Banks. Economics Multiple Choice Questions Test contains 20 questions. Answers to Economics Multiple Choice Questions are available after clicking on the answer.

1.The number of banks Nationalized in 1969 was :

(a) 8

(b)10

(c) 14

(d)16

Answer

Answer: (c) 14


 

2.________ refers to that portion of total deposits with a commercial bank has to keep with the central bank:

(a) SLR

(b) Bank rate

(c) CRR

(d) None

Answer

Answer: (c) CRR


 

3.The number of branch offices of commercial banks in 2006 was (Modified) :

(a) 65,000

(b) 65,500

(c) 69,616

(d) 69,500

Answer

Answer: (c) 69,616





4.Out of 5.6 lakh villages how many are served by the commercial bank:

(a) 1 Lakh

(b) 10,000

(c) 5,000

(d) None

Answer

Answer: (c) 5,000


 

5._____ is the rate at which the central bank discounts the bills of commercial banks:

(a) SLR

(b) Bank rate

(c) CRR

(d) Wong

Answer

Answer: (b) Bank rate


 

Economics Multiple Choice Questions – Commercial Banks

6.In terms of deposit mobilization, ______ leads other states:

(a) U.P.

(b) Maharashtra

(c) Kerala

(d) Bihar

Answer

Answer: (b) Maharashtra


 

7.The number of banks in India at the time of independence was:

(a) 640

(b) 645

(c) 650

(d) 655

Answer

Answer: (b) 645


 

8.The bank lending in June 2006 was (Updated):

(a)10,93,000

(b)12,69,090

(c)13,69,090

(d)14,69,090

Answer

Answer: (A) 10,93,000


 

9.In terms of lending, priority sector constitute about _____ of total bank lending:

(a) 60

(b) 80

(c) 30

(d) 40

Answer

Answer: (A) 60





10.How many banks were nationalized in 1980 ?

(a)6

(b)14

(c) 20

(d)30

Answer

Answer: (A) 6


 

Economics Multiple Choice Questions – Commercial Banks

11.In India statutory liquidity ratio is:

(a) 15%

(b) 20%

(c) 25%

(d) 30%

Answer

Answer: (c) 25%


 

12.Rural bank branches constitute _____ percent of total Bank branches in India in June 2006 (updated):

(a) 14

(b) 60

(c) 44

(d) 82

Answer

Answer: (c) 44


 

13.RBI makes advances to the central and state government repayable within ______ from the date of advancing:

(a) 60 days

(b) 45 days

(c) 90 days

(d) 75 days

Answer

Answer: (c) 90 days


 

14.Central Bank control their credit by

(a) CRR

(b) SLR

(c) Both CRR & SLR

(d) None

Answer

Answer: (c) Both CRR & SLR


 

15.The nationalisation of 6 commercial banks happened in:

(a) 1944

(b) 1949

(c) 1956

(d) 1980

Answer

Answer: (d) 1980


 

Economics Multiple Choice Questions – Commercial Banks

16.Banks not only accept deposits but also _____ savings.

(a) Distribute

(b) Mobilize

(c) Convert

(d) None of above.

Answer

Answer: (b) Mobilize





17.______ controls affects indiscriminately all sectors of the economy?

(a) Selective credit control

(b) Quantitative control

(c) Margin requirement

(d) None of these.

Answer

Answer: (b) Quantitative control


 

18.Which of the following functions, modern banks do not per form?

(a) Issue of letter of credit

(b) Publishing of statistics

(c) Handling of Foreign Exchange Reserves

(d) Conducting Enquiry Survey

Answer

Answer: (d) Conducting Enquiry Survey


 

19.Banking Ombudsman means:

(a) Person appointed to recover dues from defaulting borrowers.

(b) A person to whom customers can approach for redress of their grievances

(c) A person appointed to settle dispute between employees & management

(d) A person appointed by RBI to oversee the functioning of foreign banks.

Answer

Answer: (b) A person to whom customers can approach for redress of their grievances


 

20.The government established ______ in 1982 to finance rural projects at lower rate of interest:

(a) Regional Rural Banks

(b) Reserve Bank of India

(c) Co-operative Banks

(d) National Bank for Agriculture and Rural Development

Answer

Answer: (d) National Bank for Agriculture and Rural Development


 

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