Q. What is a key characteristic of a cooperative bank?
-
A.
Owned by shareholders
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B.
Operates for profit
-
C.
Owned and operated by members
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D.
Regulated by the central bank
Solution
Cooperative banks are owned and operated by their members, focusing on serving their needs.
Correct Answer:
C
— Owned and operated by members
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Q. What is the main purpose of a central bank?
-
A.
To provide loans to the public
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B.
To manage the country's monetary policy
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C.
To offer retail banking services
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D.
To insure deposits
Solution
The main purpose of a central bank is to manage the country's monetary policy and ensure financial stability.
Correct Answer:
B
— To manage the country's monetary policy
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Q. What is the primary function of a commercial bank?
-
A.
To issue currency
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B.
To provide loans and accept deposits
-
C.
To manage government accounts
-
D.
To regulate the money supply
Solution
The primary function of a commercial bank is to provide loans and accept deposits from the public.
Correct Answer:
B
— To provide loans and accept deposits
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Q. What is the role of the Reserve Bank of India (RBI) in the banking structure?
-
A.
To provide loans to individuals
-
B.
To regulate and supervise the banking sector
-
C.
To offer investment advice
-
D.
To manage foreign exchange
Solution
The RBI regulates and supervises the banking sector to ensure financial stability and protect depositors.
Correct Answer:
B
— To regulate and supervise the banking sector
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Q. What type of bank is primarily focused on providing microloans to low-income individuals?
-
A.
Commercial Bank
-
B.
Development Bank
-
C.
Microfinance Bank
-
D.
Investment Bank
Solution
Microfinance banks are focused on providing microloans to low-income individuals who lack access to traditional banking.
Correct Answer:
C
— Microfinance Bank
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Q. Which of the following is NOT a function of the Reserve Bank of India?
-
A.
Issuing currency
-
B.
Regulating foreign exchange
-
C.
Providing personal loans
-
D.
Controlling inflation
Solution
Providing personal loans is not a function of the Reserve Bank of India; it primarily regulates and supervises banks.
Correct Answer:
C
— Providing personal loans
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Q. Which type of bank is established to provide long-term credit for development projects?
-
A.
Commercial Bank
-
B.
Investment Bank
-
C.
Development Bank
-
D.
Cooperative Bank
Solution
Development banks are established to provide long-term credit for development projects.
Correct Answer:
C
— Development Bank
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Q. Which type of bank primarily deals with large corporations and institutional clients?
-
A.
Commercial Bank
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B.
Investment Bank
-
C.
Retail Bank
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D.
Microfinance Bank
Solution
Investment banks primarily deal with large corporations and institutional clients, providing services like underwriting and mergers.
Correct Answer:
B
— Investment Bank
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Q. Which type of bank primarily focuses on providing financial services to individuals and small businesses?
-
A.
Investment Bank
-
B.
Commercial Bank
-
C.
Central Bank
-
D.
Development Bank
Solution
Commercial banks primarily focus on providing financial services to individuals and small businesses.
Correct Answer:
B
— Commercial Bank
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