{"id":13391,"date":"2025-09-30T11:23:30","date_gmt":"2025-09-30T10:23:30","guid":{"rendered":"https:\/\/mcqsadda.com\/?p=13391"},"modified":"2025-10-24T05:50:14","modified_gmt":"2025-10-24T04:50:14","slug":"financial-institutions-top-100-mcqs-with-answer-and-explanation","status":"publish","type":"post","link":"https:\/\/mcqsadda.com\/index.php\/2025\/09\/30\/financial-institutions-top-100-mcqs-with-answer-and-explanation\/","title":{"rendered":"Financial Institutions\u00a0Top 100 MCQs With Answer and Explanation"},"content":{"rendered":"\n

1. A financial institution is defined as:<\/mark><\/strong>
A) A firm producing goods
B) An institution that facilitates financial transactions
C) Only commercial banks
D) Only stock exchanges
Answer: B<\/strong>
Explanation:<\/strong> Financial institutions deal with borrowing, lending, investment, and managing money<\/strong>.<\/p>\n\n\n\n

2. The primary role of financial institutions is to:<\/mark><\/strong>
A) Print currency
B) Mobilize savings and channel them into investment
C) Provide subsidies to farmers
D) Fix fiscal deficit
Answer: B<\/strong>
Explanation:<\/strong> Financial institutions bridge savers and borrowers<\/strong>.<\/p>\n\n\n\n

3. Which of the following is a financial institution?<\/mark><\/strong>
A) RBI
B) SBI
C) LIC
D) All of the above
Answer: D<\/strong>
Explanation:<\/strong> All are financial institutions, performing different roles.<\/p>\n\n\n\n

4. Financial institutions are broadly classified into:<\/mark><\/strong>
A) Banks and NBFCs
B) Monetary and Fiscal
C) Public and Private
D) Cooperative and Industrial
Answer: A<\/strong>
Explanation:<\/strong> They are mainly divided into banks & non-banking financial institutions<\/strong>.<\/p>\n\n\n\n

5. The central financial institution of India is:<\/mark><\/strong>
A) SEBI
B) NABARD
C) RBI
D) IRDAI
Answer: C<\/strong>
Explanation:<\/strong> RBI = central bank, regulator of financial system<\/strong>.<\/p>\n\n\n\n

6. Which of the following is NOT a financial institution?<\/mark><\/strong>
A) Insurance companies
B) Stock exchanges
C) Factories
D) NBFCs
Answer: C<\/strong>
Explanation:<\/strong> Factories are production units, not financial institutions.<\/p>\n\n\n\n

7. Non-Banking Financial Institutions perform functions similar to:<\/mark><\/strong>
A) Agricultural cooperatives
B) Banks but without banking license
C) Trade unions
D) Export companies
Answer: B<\/strong>
Explanation:<\/strong> NBFCs provide financial services but cannot issue demand deposits<\/strong>.<\/p>\n\n\n\n

8. Development Financial Institutions (DFIs) provide:<\/mark><\/strong>
A) Long-term credit to industries & infrastructure
B) Short-term loans only
C) Agricultural subsidies
D) Foreign exchange reserves
Answer: A<\/strong>
Explanation:<\/strong> DFIs \u2192 long-term finance for industry & infrastructure<\/strong>.<\/p>\n\n\n\n

9. The main regulator of financial institutions in India is:<\/mark><\/strong>
A) Ministry of Finance
B) SEBI
C) RBI
D) CAG
Answer: C<\/strong>
Explanation:<\/strong> RBI is chief regulator<\/strong> of Indian financial institutions.<\/p>\n\n\n\n

10. Financial intermediaries include:<\/mark><\/strong>
A) Banks
B) Insurance companies
C) Mutual funds
D) All of the above
Answer: D<\/strong>
Explanation:<\/strong> They act as middlemen between savers and borrowers<\/strong>.<\/p>\n\n\n\n

11. Insurance companies are regulated in India by:<\/mark><\/strong>
A) RBI
B) SEBI
C) IRDAI
D) Ministry of Finance
Answer: C<\/strong>
Explanation:<\/strong> Insurance Regulatory and Development Authority of India<\/strong> regulates insurance.<\/p>\n\n\n\n

12. Pension funds in India are regulated by:<\/mark><\/strong>
A) RBI
B) SEBI
C) PFRDA
D) NABARD
Answer: C<\/strong>
Explanation:<\/strong> Pension Fund Regulatory and Development Authority (PFRDA)<\/strong> regulates pensions.<\/p>\n\n\n\n

13. The primary function of SEBI is:<\/mark><\/strong>
A) Supervision of insurance sector
B) Regulation of capital markets
C) Control of money supply
D) Supervision of cooperative banks
Answer: B<\/strong>
Explanation:<\/strong> SEBI regulates stock exchanges, securities & capital markets<\/strong>.<\/p>\n\n\n\n

14. Which of the following is a money market institution?<\/mark><\/strong>
A) Mutual funds
B) Commercial banks
C) RBI
D) All of the above
Answer: D<\/strong>
Explanation:<\/strong> All participate in money market operations<\/strong>.<\/p>\n\n\n\n

15. Which is the apex cooperative financial institution in India?<\/mark><\/strong>
A) SEBI
B) RBI
C) NABARD
D) SIDBI
Answer: C<\/strong>
Explanation:<\/strong> NABARD = apex institution for agriculture & rural finance<\/strong>.<\/p>\n\n\n\n

16. Which of the following provides venture capital finance?<\/mark><\/strong>
A) Commercial banks
B) Venture capital funds
C) Insurance companies
D) RBI
Answer: B<\/strong>
Explanation:<\/strong> Venture capital funds support startups and innovation<\/strong>.<\/p>\n\n\n\n

17. Stock exchanges are examples of:<\/mark><\/strong>
A) Banking institutions
B) Non-banking financial institutions
C) Insurance institutions
D) Industrial institutions
Answer: B<\/strong>
Explanation:<\/strong> Stock exchanges = NBFCs regulating trading of securities<\/strong>.<\/p>\n\n\n\n

18. Which of the following is a primary function of financial institutions?<\/mark><\/strong>
A) Mobilizing savings
B) Allocating credit
C) Risk management
D) All of the above
Answer: D<\/strong>
Explanation:<\/strong> They perform mobilization, allocation, risk sharing<\/strong>.<\/p>\n\n\n\n

19. Universal banking means:<\/mark><\/strong>
A) One bank for one purpose
B) Banks providing multiple financial services under one roof
C) Only foreign banks
D) Small banks in rural areas
Answer: B<\/strong>
Explanation:<\/strong> Universal banks provide banking, insurance, investment services together<\/strong>.<\/p>\n\n\n\n

20. Which of the following is NOT an NBFC?<\/mark><\/strong>
A) HDFC Ltd.
B) LIC Housing Finance
C) PNB
D) Bajaj Finance
Answer: C<\/strong>
Explanation:<\/strong> PNB = commercial bank, not NBFC.<\/p>\n\n\n\n

21. Microfinance institutions provide:<\/mark><\/strong>
A) Small loans to poor & self-help groups
B) Long-term industrial finance
C) Foreign exchange loans
D) Loans only to corporates
Answer: A<\/strong>
Explanation:<\/strong> MFIs provide small loans to poor without collateral<\/strong>.<\/p>\n\n\n\n

22. Which institution regulates microfinance in India?<\/mark><\/strong>
A) SEBI
B) RBI
C) NABARD
D) Ministry of Rural Development
Answer: B<\/strong>
Explanation:<\/strong> RBI regulates MFIs since 2011.<\/p>\n\n\n\n

23. Primary Agricultural Credit Societies (PACS) work at the:<\/mark><\/strong>
A) District level
B) Block level
C) Village level
D) State level
Answer: C<\/strong>
Explanation:<\/strong> PACS are village-level cooperative credit institutions<\/strong>.<\/p>\n\n\n\n

24. The first Indian Development Financial Institution was:<\/mark><\/strong>
A) IDBI
B) IFCI
C) ICICI
D) NABARD
Answer: B<\/strong>
Explanation:<\/strong> IFCI (1948)<\/strong> was the first DFI in India.<\/p>\n\n\n\n

25. Which of the following is a key feature of financial institutions?<\/mark><\/strong>
A) Provide liquidity
B) Transfer resources
C) Risk transformation
D) All of the above
Answer: D<\/strong>
Explanation:<\/strong> Financial institutions transform savings into investment, provide liquidity & manage risk<\/strong>.<\/p>\n\n\n\n

26. The Banking Regulation Act of India was passed in:<\/mark><\/strong>
A) 1934
B) 1947
C) 1949
D) 1955
Answer: C<\/strong>
Explanation:<\/strong> Banking Regulation Act, 1949<\/strong> governs commercial banks in India.<\/p>\n\n\n\n

27. A scheduled bank is included in:<\/mark><\/strong>
A) First Schedule of RBI Act
B) Second Schedule of RBI Act
C) Third Schedule of RBI Act
D) Banking Companies Act
Answer: B<\/strong>
Explanation:<\/strong> Scheduled banks appear in Second Schedule of RBI Act, 1934<\/strong>.<\/p>\n\n\n\n

28. The largest public sector bank in India is:<\/mark><\/strong>
A) Punjab National Bank
B) Canara Bank
C) State Bank of India
D) Bank of Baroda
Answer: C<\/strong>
Explanation:<\/strong> SBI<\/strong> is India\u2019s largest PSB by assets & branches.<\/p>\n\n\n\n

29. Which of the following is NOT a commercial bank?<\/mark><\/strong>
A) ICICI Bank
B) SBI
C) HDFC Bank
D) NABARD
Answer: D<\/strong>
Explanation:<\/strong> NABARD = development financial institution<\/strong>, not a commercial bank.<\/p>\n\n\n\n

30. The major source of funds for commercial banks is:<\/mark><\/strong>
A) Government grants
B) Public deposits
C) RBI loans
D) Foreign borrowings
Answer: B<\/strong>
Explanation:<\/strong> Banks rely primarily on deposits<\/strong> (savings, current, fixed).<\/p>\n\n\n\n

31. Cooperative banks are regulated by:<\/mark><\/strong>
A) Only RBI
B) Only NABARD
C) RBI and NABARD
D) SEBI
Answer: C<\/strong>
Explanation:<\/strong> Cooperative banks are jointly regulated by RBI & NABARD<\/strong>.<\/p>\n\n\n\n

32. Which of the following institutions cannot accept demand deposits?<\/mark><\/strong>
A) Commercial banks
B) Cooperative banks
C) NBFCs
D) Payment banks
Answer: C<\/strong>
Explanation:<\/strong> NBFCs<\/strong> are prohibited from demand deposits.<\/p>\n\n\n\n

33. Which of the following is a type of NBFC?<\/mark><\/strong>
A) Housing Finance Company
B) Microfinance Institution
C) Infrastructure Finance Company
D) All of the above
Answer: D<\/strong>
Explanation:<\/strong> NBFCs operate in housing, microfinance, infrastructure finance<\/strong>.<\/p>\n\n\n\n

34. Which regulator oversees NBFCs in India?<\/mark><\/strong>
A) SEBI
B) RBI
C) Ministry of Finance
D) IRDAI
Answer: B<\/strong>
Explanation:<\/strong> NBFCs are under RBI regulation<\/strong>.<\/p>\n\n\n\n

35. A key difference between NBFCs and banks is:<\/mark><\/strong>
A) NBFCs cannot lend
B) NBFCs cannot accept demand deposits or issue cheques
C) NBFCs cannot raise equity capital
D) NBFCs cannot be private sector
Answer: B<\/strong>
Explanation:<\/strong> NBFCs cannot issue cheques or accept demand deposits<\/strong>.<\/p>\n\n\n\n

36. Payment Banks in India can accept deposits up to:<\/mark><\/strong>
A) \u20b91 lakh
B) \u20b92 lakh
C) \u20b95 lakh
D) No limit
Answer: B<\/strong>
Explanation:<\/strong> Payment banks can accept deposits up to \u20b92 lakh<\/strong> (RBI 2021 update).<\/p>\n\n\n\n

37. Small Finance Banks focus mainly on:<\/mark><\/strong>
A) Large industries
B) Priority sector lending
C) International trade
D) Stock market
Answer: B<\/strong>
Explanation:<\/strong> SFBs target small borrowers, MSMEs, farmers<\/strong>.<\/p>\n\n\n\n

38. Which was India\u2019s first Small Finance Bank?<\/mark><\/strong>
A) Ujjivan SFB
B) Equitas SFB
C) Capital SFB
D) AU SFB
Answer: D<\/strong>
Explanation:<\/strong> AU Small Finance Bank<\/strong> was the first.<\/p>\n\n\n\n

39. Microfinance Institutions (MFIs) are meant for:<\/strong>
<\/mark>A) Big corporates
B) Small borrowers without collateral
C) Exporters only
D) Insurance firms
Answer: B<\/strong>
Explanation:<\/strong> MFIs provide small loans to poor households\/SHGs<\/strong>.<\/p>\n\n\n\n

40. Which regulator controls Microfinance Institutions (NBFC-MFIs)?<\/strong>
<\/mark>A) NABARD
B) RBI
C) SEBI
D) Ministry of Rural Development
Answer: B<\/strong>
Explanation:<\/strong> Since 2011, RBI regulates NBFC-MFIs<\/strong>.<\/p>\n\n\n\n

41. Regional Rural Banks (RRBs) were established in:<\/strong>
<\/mark>A) 1969
B) 1975
C) 1980
D) 1991
Answer: B<\/strong>
Explanation:<\/strong> RRBs were launched in 1975<\/strong> for rural credit.<\/p>\n\n\n\n

42. The ownership of RRBs is shared by:<\/strong>
<\/mark>A) Centre, State, Sponsor Bank
B) Only Centre
C) Centre & RBI
D) NABARD & States
Answer: A<\/strong>
Explanation:<\/strong> Ownership: 50% Centre, 15% State, 35% Sponsor Bank<\/strong>.<\/p>\n\n\n\n

43. Urban Cooperative Banks mainly serve:<\/strong>
<\/mark>A) Farmers
B) Urban and semi-urban customers
C) Exporters
D) Govt only
Answer: B<\/strong>
Explanation:<\/strong> UCBs \u2192 urban retail & small business loans<\/strong>.<\/p>\n\n\n\n

44. The term \u201cuniversal banking\u201d means:<\/strong>
<\/mark>A) One bank, one function
B) Banks offering all services under one roof
C) Only private banks
D) Only rural banks
Answer: B<\/strong>
Explanation:<\/strong> Universal banks = commercial + investment + insurance services<\/strong>.<\/p>\n\n\n\n

45. Which of the following is NOT a function of commercial banks?<\/strong>
<\/mark>A) Accepting deposits
B) Granting loans
C) Issuing currency
D) Credit creation
Answer: C<\/strong>
Explanation:<\/strong> Only RBI issues currency<\/strong>, not commercial banks.<\/p>\n\n\n\n

46. Which type of bank is EXIM Bank?<\/strong>
<\/mark>A) Cooperative bank
B) Development financial institution
C) Private commercial bank
D) Microfinance institution
Answer: B<\/strong>
Explanation:<\/strong> Export-Import Bank of India<\/strong> = development financial institution for trade.<\/p>\n\n\n\n

47. Which institution refinances agriculture credit in India?<\/strong>
<\/mark>A) RBI
B) NABARD
C) SIDBI
D) SBI
Answer: B<\/strong>
Explanation:<\/strong> NABARD<\/strong> refinances agriculture loans.<\/p>\n\n\n\n

48. SIDBI focuses on financing:<\/strong>
<\/mark>A) Large industries
B) Small industries & MSMEs
C) Agriculture
D) Exports only
Answer: B<\/strong>
Explanation:<\/strong> Small Industries Development Bank of India<\/strong> finances MSMEs.<\/p>\n\n\n\n

49. The major source of NBFC funding is:<\/strong>
<\/mark>A) Public deposits
B) Market borrowings and equity
C) Printing currency
D) Government subsidies
Answer: B<\/strong>
Explanation:<\/strong> NBFCs raise funds via equity & borrowings<\/strong>, not demand deposits.<\/p>\n\n\n\n

50. A key role of NBFCs in India is:<\/strong>
<\/mark>A) Controlling inflation
B) Providing alternative credit to underserved sectors
C) Printing money
D) Acting as central bank
Answer: B<\/strong>
Explanation:<\/strong> NBFCs fill credit gaps in housing, vehicles, microfinance<\/strong>.<\/p>\n\n\n\n

51. The first Development Financial Institution (DFI) set up in India was:<\/strong>
<\/mark>A) IDBI
B) ICICI
C) IFCI
D) NABARD
Answer: C<\/strong>
Explanation:<\/strong> IFCI (1948)<\/strong> was India\u2019s first DFI to provide long-term industrial finance.<\/p>\n\n\n\n

52. Which institution was set up in 1964 to coordinate term-lending institutions?<\/strong>
<\/mark>A) IFCI
B) IDBI
C) ICICI
D) NABARD
Answer: B<\/strong>
Explanation:<\/strong> IDBI (1964)<\/strong> was created as a subsidiary of RBI, later became an independent institution.<\/p>\n\n\n\n

53. ICICI was established in 1955 with assistance from:<\/strong>
<\/mark>A) World Bank
B) IMF
C) Asian Development Bank
D) WTO
Answer: A<\/strong>
Explanation:<\/strong> ICICI<\/strong> was set up with World Bank support<\/strong> to promote private industrial finance.<\/p>\n\n\n\n

54. Which financial institution provides credit for exports and imports in India?<\/strong>
<\/mark>A) NABARD
B) SIDBI
C) EXIM Bank
D) IFCI
Answer: C<\/strong>
Explanation:<\/strong> EXIM Bank of India (1982)<\/strong> specializes in foreign trade finance.<\/p>\n\n\n\n

55. NABARD was established in:<\/strong>
<\/mark>A) 1975
B) 1982
C) 1991
D) 2000
Answer: B<\/strong>
Explanation:<\/strong> NABARD (1982)<\/strong> finances agriculture and rural development.<\/p>\n\n\n\n

56. Which institution refinances loans to small industries and MSMEs?<\/strong>
<\/mark>A) NABARD
B) SIDBI
C) IDBI
D) EXIM Bank
Answer: B<\/strong>
Explanation:<\/strong> SIDBI (1990)<\/strong> focuses on MSME development.<\/p>\n\n\n\n

57. Industrial Reconstruction Bank of India (IRBI) was later renamed as:<\/strong>
<\/mark>A) SIDBI
B) IFCI
C) IIBI
D) ICICI
Answer: C<\/strong>
Explanation:<\/strong> IRBI was restructured as IIBI (Industrial Investment Bank of India)<\/strong> in 1997.<\/p>\n\n\n\n

58. Which institution provides long-term agricultural finance in India?<\/strong>
<\/mark>A) NABARD
B) EXIM Bank
C) IFCI
D) ICICI
Answer: A<\/strong>
Explanation:<\/strong> NABARD<\/strong> is the apex rural credit institution.<\/p>\n\n\n\n

59. The apex financial institution for housing sector in India is:<\/strong>
<\/mark>A) NHB
B) SIDBI
C) NABARD
D) IRDAI
Answer: A<\/strong>
Explanation:<\/strong> National Housing Bank (1988)<\/strong> regulates housing finance companies.<\/p>\n\n\n\n

60. Which Indian financial institution regulates the insurance industry?<\/strong>
<\/mark>A) IRDAI
B) SEBI
C) RBI
D) PFRDA
Answer: A<\/strong>
Explanation:<\/strong> Insurance Regulatory and Development Authority of India (IRDAI)<\/strong> regulates insurance.<\/p>\n\n\n\n

61. PFRDA regulates:<\/strong>
<\/mark>A) Insurance sector
B) Pension funds
C) Capital markets
D) Cooperative banks
Answer: B<\/strong>
Explanation:<\/strong> PFRDA (2003)<\/strong> supervises pension funds like NPS.<\/p>\n\n\n\n

62. Which is the oldest Bretton Woods Institution?<\/strong>
<\/mark>A) WTO
B) IMF
C) World Bank
D) OECD
Answer: B<\/strong>
Explanation:<\/strong> Both IMF & World Bank<\/strong> were set up in 1944, but IMF began functioning first.<\/p>\n\n\n\n

63. The main function of IMF is:<\/strong>
<\/mark>A) Long-term infrastructure finance
B) Providing short-term balance of payments support
C) Agricultural finance
D) Export promotion
Answer: B<\/strong>
Explanation:<\/strong> IMF lends short-term BoP support & stabilizes exchange rates<\/strong>.<\/p>\n\n\n\n

64. The World Bank provides:<\/strong>
<\/mark>A) Short-term loans
B) Long-term development finance
C) Loans to private firms only
D) Microfinance
Answer: B<\/strong>
Explanation:<\/strong> World Bank provides long-term infrastructure & poverty alleviation loans<\/strong>.<\/p>\n\n\n\n

65. The International Finance Corporation (IFC) is a part of:<\/strong>
<\/mark>A) IMF
B) WTO
C) World Bank Group
D) BIS
Answer: C<\/strong>
Explanation:<\/strong> IFC = World Bank Group arm<\/strong> financing private sector.<\/p>\n\n\n\n

66. Asian Development Bank (ADB) was founded in:<\/strong>
<\/mark>A) 1944
B) 1956
C) 1966
D) 1972
Answer: C<\/strong>
Explanation:<\/strong> ADB was set up in 1966<\/strong>, headquartered in Manila.<\/p>\n\n\n\n

67. The New Development Bank (NDB) is associated with:<\/strong>
<\/mark>A) ASEAN
B) BRICS nations
C) EU
D) OECD
Answer: B<\/strong>
Explanation:<\/strong> NDB = BRICS Bank<\/strong>, set up in 2014.<\/p>\n\n\n\n

68. Which of the following is a member of AIIB (Asian Infrastructure Investment Bank)?<\/strong>
<\/mark>A) India
B) USA
C) Japan
D) UK (not a founding member)
Answer: A<\/strong>
Explanation:<\/strong> India is a founding member<\/strong> of AIIB (2016).<\/p>\n\n\n\n

69. Bank for International Settlements (BIS) is headquartered in:<\/strong>
<\/mark>A) London
B) Basel
C) Washington DC
D) Geneva
Answer: B<\/strong>
Explanation:<\/strong> BIS (1930)<\/strong> in Basel = \u201ccentral bank of central banks\u201d.<\/p>\n\n\n\n

70. Which Indian institution is called \u201cBanker to Banks\u201d?<\/strong>
<\/mark>A) SEBI
B) NABARD
C) RBI
D) IDBI
Answer: C<\/strong>
Explanation:<\/strong> RBI<\/strong> acts as banker to commercial banks.<\/p>\n\n\n\n

71. Export Credit Guarantee Corporation of India (ECGC) provides:<\/strong>
<\/mark>A) Agricultural insurance
B) Export credit insurance
C) MSME loans
D) Housing finance
Answer: B<\/strong>
Explanation:<\/strong> ECGC offers insurance & guarantees to exporters<\/strong>.<\/p>\n\n\n\n

72. Which institution is called \u201csoft lender\u201d providing concessional loans to poor countries?<\/strong>
<\/mark>A) IMF
B) IDA (International Development Association)
C) IFC
D) BIS
Answer: B<\/strong>
Explanation:<\/strong> IDA, part of World Bank, provides interest-free concessional loans<\/strong>.<\/p>\n\n\n\n

73. GIC (General Insurance Corporation of India) was established in:<\/strong>
<\/mark>A) 1956
B) 1972
C) 1985
D) 1999
Answer: B<\/strong>
Explanation:<\/strong> GIC (1972)<\/strong> was set up after nationalization of general insurance.<\/p>\n\n\n\n

74. Which international institution releases the \u201cWorld Development Report\u201d?<\/strong>
<\/mark>A) IMF
B) WTO
C) World Bank
D) UNDP
Answer: C<\/strong>
Explanation:<\/strong> World Bank<\/strong> publishes World Development Report annually.<\/p>\n\n\n\n

75. Which international institution publishes \u201cGlobal Financial Stability Report\u201d?<\/strong>
<\/mark>A) IMF
B) World Bank
C) ADB
D) OECD
Answer: A<\/strong>
Explanation:<\/strong> IMF<\/strong> releases the GFSR twice a year.<\/p>\n\n\n\n

76. The Reserve Bank of India was nationalized in:<\/strong>
<\/mark>A) 1935
B) 1947
C) 1949
D) 1950
Answer: C<\/strong>
Explanation:<\/strong> RBI, established in 1935, was nationalized in 1949<\/strong>.<\/p>\n\n\n\n

77. Which Act governs the functioning of SEBI?<\/strong>
<\/mark>A) SEBI Act, 1988
B) SEBI Act, 1992
C) Securities Contract Act, 1956
D) Companies Act, 2013
Answer: B<\/strong>
Explanation:<\/strong> SEBI was given statutory powers under the SEBI Act, 1992<\/strong>.<\/p>\n\n\n\n

78. IRDAI regulates which sector in India?<\/strong>
<\/mark>A) Capital market
B) Banking
C) Insurance
D) Pensions
Answer: C<\/strong>
Explanation:<\/strong> IRDAI (1999)<\/strong> regulates insurance companies.<\/p>\n\n\n\n

79. PFRDA regulates which financial service?<\/strong>
<\/mark>A) Capital markets
B) Pension funds
C) Insurance
D) Cooperative banks
Answer: B<\/strong>
Explanation:<\/strong> PFRDA<\/strong> regulates pensions (NPS, Atal Pension Yojana).<\/p>\n\n\n\n

80. The largest financial institution in India by assets is:<\/strong>
<\/mark>A) SBI
B) LIC
C) RBI
D) ICICI Bank
Answer: B<\/strong>
Explanation:<\/strong> LIC of India<\/strong> is the largest financial institution by assets.<\/p>\n\n\n\n

81. Which bank is known as the \u201cBanker to the Government\u201d?<\/strong>
<\/mark>A) SBI
B) RBI
C) NABARD
D) EXIM Bank
Answer: B<\/strong>
Explanation:<\/strong> RBI maintains government accounts, manages debt \u2192 Banker to Govt<\/strong>.<\/p>\n\n\n\n

82. The merger of 10 public sector banks into 4 larger entities took place in:<\/strong>
<\/mark>A) 2015
B) 2017
C) 2019
D) 2021
Answer: C<\/strong>
Explanation:<\/strong> In 2019<\/strong>, govt announced major PSU bank consolidation.<\/p>\n\n\n\n

83. Which program was launched to promote financial inclusion in India?<\/strong>
<\/mark>A) Make in India
B) Jan Dhan Yojana
C) Skill India
D) Digital India
Answer: B<\/strong>
Explanation:<\/strong> PM Jan Dhan Yojana (2014)<\/strong> aimed at universal banking access.<\/p>\n\n\n\n

84. Which initiative promotes \u201cinsurance for all\u201d in India?<\/strong>
<\/mark>A) Jan Suraksha Yojana
B) Atal Pension Yojana
C) Ayushman Bharat
D) LIC Jeevan Suraksha
Answer: A<\/strong>
Explanation:<\/strong> Pradhan Mantri Suraksha Bima Yojana<\/strong> promotes affordable insurance.<\/p>\n\n\n\n

85. Which is India\u2019s first universal bank formed from an NBFC?<\/strong>
<\/mark>A) HDFC Bank
B) ICICI Bank
C) Kotak Mahindra Bank
D) Axis Bank
Answer: C<\/strong>
Explanation:<\/strong> Kotak Mahindra Bank (2003)<\/strong> became India\u2019s first universal bank from an NBFC.<\/p>\n\n\n\n

86. Which committee recommended banking sector reforms in 1991?<\/strong>
<\/mark>A) Rangarajan Committee
B) Narasimham Committee
C) Kelkar Committee
D) Urjit Patel Committee
Answer: B<\/strong>
Explanation:<\/strong> Narasimham Committee (1991)<\/strong> recommended liberalization of banking.<\/p>\n\n\n\n

87. Which institution manages UPI in India?<\/strong>
<\/mark>A) RBI
B) SEBI
C) NPCI
D) IRDAI
Answer: C<\/strong>
Explanation:<\/strong> National Payments Corporation of India (NPCI)<\/strong> manages UPI, RuPay, IMPS.<\/p>\n\n\n\n

88. The Digital Rupee (CBDC) pilot was launched by RBI in:<\/strong>
<\/mark>A) 2018
B) 2020
C) 2022
D) 2023
Answer: C<\/strong>
Explanation:<\/strong> CBDC pilot launched in 2022<\/strong> by RBI.<\/p>\n\n\n\n

89. Which institution regulates Mutual Funds in India?<\/strong>
<\/mark>A) RBI
B) SEBI
C) IRDAI
D) NABARD
Answer: B<\/strong>
Explanation:<\/strong> SEBI<\/strong> regulates mutual funds to protect investors.<\/p>\n\n\n\n

90. The Basel Committee is related to:<\/strong>
<\/mark>A) Insurance
B) Banking regulation and supervision
C) Pension reforms
D) Stock market
Answer: B<\/strong>
Explanation:<\/strong> Basel norms<\/strong> provide guidelines on capital adequacy for banks.<\/p>\n\n\n\n

91. Basel III norms require Indian banks to maintain minimum Capital Adequacy Ratio (CAR) of:<\/strong>
<\/mark>A) 7%
B) 8%
C) 9%
D) 12%
Answer: C<\/strong>
Explanation:<\/strong> Indian banks must maintain 9% CAR<\/strong> under Basel III.<\/p>\n\n\n\n

92. Which Indian institution is responsible for credit rating of companies?<\/strong>
<\/mark>A) CRISIL, ICRA, CARE
B) RBI
C) SEBI
D) IRDAI
Answer: A<\/strong>
Explanation:<\/strong> Private credit rating agencies<\/strong> like CRISIL, ICRA provide ratings.<\/p>\n\n\n\n

93. The main role of DFIs like NABARD and SIDBI is to provide:<\/strong>
<\/mark>A) Short-term working capital
B) Long-term development finance
C) Currency notes
D) Tax collection
Answer: B<\/strong>
Explanation:<\/strong> DFIs provide long-term finance for development projects<\/strong>.<\/p>\n\n\n\n

94. Which of the following is NOT a public sector financial institution?<\/strong>
<\/mark>A) LIC
B) SBI
C) HDFC Bank
D) NABARD
Answer: C<\/strong>
Explanation:<\/strong> HDFC Bank<\/strong> is a private sector financial institution.<\/p>\n\n\n\n

95. Which authority regulates chit funds in India?<\/strong>
<\/mark>A) RBI
B) SEBI
C) State Governments
D) Ministry of Finance
Answer: C<\/strong>
Explanation:<\/strong> Chit funds are regulated by state governments<\/strong> under Chit Funds Act, 1982.<\/p>\n\n\n\n

96. The Financial Stability and Development Council (FSDC) is headed by:<\/strong>
<\/mark>A) RBI Governor
B) Finance Minister
C) Prime Minister
D) SEBI Chairman
Answer: B<\/strong>
Explanation:<\/strong> Finance Minister chairs FSDC<\/strong>, coordinating financial stability.<\/p>\n\n\n\n

97. The institution that provides crop insurance in India is:<\/strong>
<\/mark>A) NABARD
B) Agriculture Insurance Company of India (AICIL)
C) RBI
D) IRDAI
Answer: B<\/strong>
Explanation:<\/strong> AICIL<\/strong> provides crop insurance schemes.<\/p>\n\n\n\n

98. Which of the following is part of India\u2019s financial infrastructure?<\/strong>
<\/mark>A) Payment systems
B) Clearing houses
C) Credit bureaus
D) All of the above
Answer: D<\/strong>
Explanation:<\/strong> All are components of financial infrastructure<\/strong>.<\/p>\n\n\n\n

99. The Pradhan Mantri Mudra Yojana provides finance to:<\/strong>
<\/mark>A) Large corporates
B) Small entrepreneurs and MSMEs
C) Only farmers
D) State governments
Answer: B<\/strong>
Explanation:<\/strong> MUDRA Yojana<\/strong> (2015) supports micro & small enterprises.<\/p>\n\n\n\n

100. The concept of \u201cFinancial Inclusion\u201d means:<\/strong>
<\/mark>A) Providing financial services to all, especially weaker sections
B) Privatization of banks
C) Reducing number of branches
D) Increasing export finance only
Answer: A<\/strong>
Explanation:<\/strong> Financial inclusion = universal access to credit, savings, insurance, and payments<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

1. A financial institution is defined as:A) A firm producing goodsB) An institution that facilitates financial transactionsC) Only commercial banksD) Only stock exchangesAnswer: BExplanation: Financial institutions deal with borrowing, lending, investment, and managing money. 2. 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