The Indian Financial System Quiz: Trivia

40 Questions | Total Attempts: 8292

SettingsSettingsSettings
Please wait...
The Indian Financial System Quiz: Trivia

The Indian financial system quizzes trivia. It is nearly impossible for a business not to have lenders and the Indian financial system makes it possible for lenders, borrowers and investors to interact with each other. How well do you understand the money market instruments in this system? Do take the quiz and get a refresher on the Indian financial system and the components within it and how they help the economy.


Questions and Answers
  • 1. 
    The structure that is available in an economy to mobilize the capital from various surplus sectors of the economy and allocate and distribute the same to the various needy sectors is known as   ----------
    • A. 

      Economic Environment

    • B. 

      Financial Environment

    • C. 

      Financial System

    • D. 

      Financial Market

    • E. 

      None

  • 2. 
    The Active role played by the financial system in India helps the transformation of Savings into Investment & Consumption.       
  • 3. 
    Banks, Financial Institution mutual funds etc are examples of Financial Intermediaries.                                                      
  • 4. 
    Financial market include Money Market, Debt Market, Forex Market and  ----                                                                                             
  • 5. 
    Treasury bills are money market instrument.
    • A. 

      True

    • B. 

      False

  • 6. 
    Certificate of Deposit is a money market instrument.
    • A. 

      True

    • B. 

      False

  • 7. 
    Commercial paper is a money market instrument.  
    • A. 

      True

    • B. 

      False

  • 8. 
    Commercial paper is a money market instrument.
    • A. 

      True

    • B. 

      False

  • 9. 
    Call money and Notice money are Money market instruments.
    • A. 

      True

    • B. 

      False

  • 10. 
    G Securities issued by Central and State Government are instruments in Debt Market. 
    • A. 

      True

    • B. 

      False

  • 11. 
    Bonds issued by Financial Institution are instruments in the Debt markets. 
    • A. 

      True

    • B. 

      False

  • 12. 
    Registrars maintain a Register of share and debenture holders and process share and debenture allocation when issues are subscribed. Registers need approval from the Regulator. SEBI is the regulator.                                   
    • A. 

      True

    • B. 

      False

  • 13. 
    Bonds issued by Financial Institution are instruments in the Debt markets.   
    • A. 

      True

    • B. 

      False

  • 14. 
    Reserve Bank of India has two distinct roles one is Monetary Control including controlling inflation and other is -----------
    • A. 

      True

    • B. 

      False

  • 15. 
    Reserve Bank of India is exercising Monetary Control through 1) cash  Reserve Ratio, 2) Statutory Liquidity Ratio 3) REPO rate and  Bank Rate
    • A. 

      True

    • B. 

      False

  • 16. 
    Central Bank (RBI) is the lender of the last resort to other Banks.
    • A. 

      True

    • B. 

      False

  • 17. 
    It will not is responsible for ensuring an efficient payment & settlement system. 
    • A. 

      True

    • B. 

      False

  • 18. 
    Reserve Bank of India has supervision over 1) Commercial Bank 2) NBFC 3) Primary dealers 4) Financial institution.
    • A. 

      True

    • B. 

      False

  • 19. 
    Capital Market Regulator in India is SEBI.
    • A. 

      True:

    • B. 

      False

  • 20. 
    The standard rate at which RBI is prepared to buy or re discount bills of exchange or other eligible commercial papers from Banks is known as Bank Rate
    • A. 

      True

    • B. 

      False

  • 21. 
    Central Bank (RBI) is the lender of the last resort to other Banks.
    • A. 

      True

    • B. 

      False

  • 22. 
    Reserve Bank of India is Banker to Government.
    • A. 

      True

    • B. 

      False

  • 23. 
    Reserve Bank of India is Banker to Government.
    • A. 

      True

    • B. 

      False

  • 24. 
    No Bank can hold shares in a company as pledge or mortgage in excess of the limit of 30% of the paid-up capital of that company or 30% of the Bank’s paid-up capital and reserve whichever is less. This is covered in
  • 25. 
    A mutual fund is a form of collective investment that pools money from investors and invests in stocks, debt, and other securities. It is a less risky investment opinion for an individual investor. Who is the regulator?
Back to Top Back to top