Indian Economy MCQs

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The Bank Index commonly known as “NIFTY BANK” or “Bank NIFTY” was launched by India Index Service and Product Limited (IISL) in the year 2000. The index has 12 most liquid and large capitalized stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of Indian Banking sector.  At present (July, 2024) , these banks include AU Small Finance Bank, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, Indusind Bank, Kotak Mahindra Bank, PNB, RBL Bank and SBI.

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Inflation is the decline of purchasing power of a particular currency over time. It is reflected as an increase in general prices. As the demand for credit increases, the pricing of bank products also increases.

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Green Revolution- Food grains,
White Revolution Milk,
Yellow Revolution-Oil seeds,
Blue Revolution-Fisheries
Golden Revolution-Fruits;
 Silver Revolution-Eggs,
 Round Revolution Potato,
Pink Revolution-Meat,
 Grey Revolution (Fertilizers)

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Section 5 of Banking Regulation Act 1949 defines Banking as the act of accepting deposits for the purpose of lending. Commercial banks deal with money, accepts deposits and advance short-term loans / credits.

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The correct answer is “speculation.” Speculation involves taking on risk in hopes of making a profit from price movements, contrasting with hedging, which aims to reduce risk. While hedging protects against losses, speculation seeks to capitalize on market fluctuations. Notably, speculators can importantly influence market liquidity and volatility.

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A reverse mortgage is a type of financial product that allows seniors to access the equity in their homes without having to sell their property or make monthly loan payments. In a reverse mortgage, the lender makes payments to the borrower based on a percentage of the value of their home. The borrower retains ownership of their home and can continue to live there for as long as they wish. However, the loan must be repaid when the borrower dies, sells the property, or moves out of the home. Reverse mortgages can be a useful financial tool for seniors who need additional income but want to remain in their homes. However, they can also be risky and may not be suitable for everyone.

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Open Market Operations refer to the purchase and sale of the Government securities (G-Secs) by RBI from / to market.

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The primary market issuance is done either through public issues or private placement. Under Companies Act, 1956, an issue is referred as public if it results in allotment of securities to 50 investors or more. However, when the issuer makes an issue of securities to a select group of persons not exceeding 49 and which is neither a rights issue nor a public issue it is called a private placement.

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Bangladesh is the main competitor for jute industry in India. Bangladesh produces the finest quality natural jute fibre. As such Bangladeshi jute product manufacturer or exporter has an extra advantage in manufacturing top grade jute products by using best quality natural fiber.

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The money that is lent for more than one day and less than 15 days in the call money market is referred to as “Notice Money”. Term Money refers to Money lent for 15 days or more in the Inter Bank Market.