Fiscal Policy, Financial Markets, Banking Sector Trends - One Line Questions
1.
The National Stock Exchange (NSE) Nifty 50 is an index comprising: —
50 largest companies by market capitalization listed on NSE
2.
What is an Initial Public Offering (IPO)? —
3.
What is a Non-Performing Asset (NPA) in banking? —
A loan or advance for which the principal or interest payment remained overdue for a period of time
4.
The concept of 'Open Banking' allows: —
Third-party financial service providers to access bank data with customer consent
5.
Contractionary fiscal policy aims to: —
Reduce aggregate demand and control inflation
6.
Which banking sector trend involves the integration of technology to deliver financial services? —
Digital banking
7.
When the government spends more than it earns, it leads to a: —
Budget deficit
8.
Which type of financial market deals with short-term debt instruments? —
Money market
9.
What is the main difference between a commercial bank and an investment bank? —
Commercial banks accept deposits and provide loans; investment banks help companies raise capital and advise on mergers.
10.
The repo rate is the rate at which: —
The RBI lends to commercial banks against government securities
11.
The Basel Accords are international banking regulations that focus on: —
Capital adequacy, risk management, and market discipline
12.
Which of the following is a key trend in the Indian financial markets regarding retail investors? —
Increased participation through mutual funds and direct equity investment
13.
What is the term for a financial instrument whose value is derived from an underlying asset? —
Derivative
14.
Which of the following is a type of bond? —
Debenture
15.
Which of the following is a significant challenge for the Indian banking sector? —
Cybersecurity threats and digital fraud
16.
Which concept refers to the total accumulated debt of the government? —
National debt
17.
A stock exchange is a marketplace for: —
Company stocks (shares)
18.
Which of the following is a tool of monetary policy? —
Open market operations
19.
The term 'shadow banking' refers to: —
Financial intermediation activities conducted outside the regular banking system
20.
The FRBM Act (Fiscal Responsibility and Budget Management Act) in India aims to: —
Impose limits on the government's fiscal deficit
21.
An increase in the Cash Reserve Ratio (CRR) by the RBI is likely to: —
Decrease the money supply
22.
What is the main concern regarding the rising NPAs in the banking sector? —
Reduced lending capacity and potential impact on economic growth
23.
Which of the following is a tool of expansionary fiscal policy? —
Increasing government spending or decreasing taxes
24.
The Bombay Stock Exchange (BSE) Sensex is a: —
Index representing the performance of 30 large and actively traded stocks on BSE
25.
Monetary policy is primarily managed by which institution in India? —
Reserve Bank of India (RBI)
26.
The secondary market is where: —
Existing securities are traded
27.
What does 'Financial Inclusion' aim to achieve in the banking sector? —
Ensuring access to essential financial services for all sections of society
28.
Which institution regulates the securities market in India? —
SEBI
29.
The amalgamation of banks in India is often done to: —
Strengthen weaker banks and improve efficiency
30.
Quantitative easing (QE) is a tool used by central banks to: —
Inject liquidity into the economy
31.
Which of the following is a recent trend in the Indian banking sector related to customer service? —
Increased adoption of chatbots and AI for customer support
32.
What is the fiscal policy of India primarily formulated by? —
Ministry of Finance
33.
The concept of 'Banking Ombudsman' in India aims to: —
Resolve customer complaints against banks
34.
The capital market deals with: —
Long-term debt and equity instruments
35.
Which of the following is a characteristic of universal banking? —
Offering a wide range of financial services under one roof
36.
Which of the following is NOT a type of financial market? —
Labor market
37.
The 'yield' on a bond refers to: —
The annual return an investor receives on the bond
38.
The concept of 'liquidity' in financial markets refers to: —
The ease with which an asset can be converted into cash without significant loss of value
39.
The budget deficit is defined as: —
The difference between government revenue and expenditure
40.
What is the primary objective of fiscal policy? —
To influence aggregate demand and achieve macroeconomic goals
41.
What is the primary aim of the 'Monetary Policy Committee' (MPC) in India? —
To set the inflation target and determine the policy repo rate
42.
Which of the following is a key objective of the 'Pradhan Mantri Jan Dhan Yojana' (PMJDY)? —
To promote financial inclusion by providing access to banking, insurance, and pension services
43.
What is the main purpose of Deposit Insurance and Credit Guarantee Corporation (DICGC) in India? —
To insure bank deposits and guarantee credit facilities
44.
What is the primary role of a 'custodian bank'? —
To hold and safeguard financial assets on behalf of clients
45.
What is the primary function of financial markets? —
To facilitate the flow of funds from savers to borrowers
46.
What is the primary function of a 'central securities depository' like NSDL or CDSL in India? —
To facilitate the dematerialization and trading of securities
47.
A primary market transaction involves: —
Issuance of new securities
48.
What is 'insider trading'? —
Trading of securities based on non-public information
49.
What is 'FinTech' in the context of banking? —
Financial technology, using technology to improve financial services