Financial institutions are mainly concerned with
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0%
a) Production of goods
0%
b) Distribution of goods
100%
c) Mobilisation and allocation of funds
0%
d) Government administration
Financial institutions act as a link between:
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27%
a) Government and public
27%
b) Savers and investors
45%
c) Producers and consumers
0%
d) Employers and employees
Which of the following is a financial institution?
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9%
a) RBI
27%
b) LIC
18%
c) Commercial Bank
45%
d) All of the above
The primary function of financial institutions is to:
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0%
a) Provide employment
82%
b) Accept deposits and lend money
9%
c) Control inflation
9%
d) Manufacture currency
Which function involves converting savings into investments?
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9%
a) Risk transfer
36%
b) Credit creation
45%
c) Capital formation
9%
d) Liquidity management
Providing loans to businesses and individuals is known as:
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0%
a) Risk management
70%
b) Financial intermediation
30%
c) Financial regulation
0%
d) Wealth maximisation
Financial markets help in providing:
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27%
a) Employment guarantee
55%
b) Liquidity to investors
9%
c) Subsidies to firms
9%
d) Social security
Which of the following is NOT a function of financial institutions?
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9%
a) Accepting deposits
27%
b) Lending money
9%
c) Risk management
55%
d) Manufacturing goods
Which institution regulates the Indian financial system?
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9%
a) SBI
27%
b) SEBI
64%
c) RBI
0%
d) NABARD
Which of the following best explains the role of the financial system in economic development?
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0%
a) Encouraging consumption
89%
b) Channelising funds into productive uses
11%
c) Increasing imports
0%
d) Reducing employment
Conversion of savings into investment is essential for:
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a) Economic stagnation
89%
b) Economic development
11%
c) Increased consumption
0%
d) Price control
Efficient allocation of financial resources results in:
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11%
a) Wastage of funds
22%
b) Unequal growth
67%
c) Higher productivity
0%
d) Reduction in savings
Financial markets help in allocating resources by:
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0%
a) Fixing wages
89%
b) Price discovery of securities
11%
c) Collecting taxes
0%
d) Controlling population
Which role of the financial system supports industrial growth?
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78%
a) Providing long-term finance
11%
b) Restricting credit
11%
c) Increasing imports
0%
d) Discouraging investment
Financial inclusion mainly aims at:
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11%
a) Increasing profits of banks
78%
b) Providing financial services to all sections
11%
c) Reducing exports
0%
d) Increasing government control
Which of the following helps in managing financial risk?
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33%
a) Insurance
56%
b) Savings account
0%
c) Currency notes
11%
d) Cheques
A well-developed financial system contributes to:
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11%
a) Economic instability
89%
b) Balanced regional development
0%
c) Decline in investment
0%
d) Capital flight
The financial system acts as the backbone of the economy because it:
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0%
a) Produces goods
18%
b) Controls population
73%
c) Supports savings, investment, and growth
9%
d) Fixes market prices