🏛️ MCQs: Economy S001– Indian Banking System

🌿 Intro

Understand the backbone of India’s economy with these MCQs on the Banking System.
Click each question to reveal the correct answer and detailed explanation!

🧩 10 MCQs:

✅ Correct Answer: (B) Reserve Bank of India

📝 Explanation:
The Reserve Bank of India (RBI) acts as the banker, agent, and advisor to the Government of India and state governments.

✅ Correct Answer: (C) RBI

📝 Explanation:
Priority Sector Lending (PSL) is a mandate given by RBI to banks to lend a specified portion of their funds to sectors like agriculture, MSMEs, education, housing, etc.

✅ Correct Answer: (D) Cooperative Banks

📝 Explanation:
Cooperative Banks are registered under the Cooperative Societies Act and are regulated by both RBI and state governments, but they are not Scheduled Commercial Banks.

📝 Explanation:
The Reserve Bank of India was nationalized on January 1, 1949.

✅ Correct Answer: (B) Rate at which RBI lends to commercial banks

📝 Explanation:
Repo Rate is the interest rate at which RBI lends short-term funds to commercial banks against government securities.

✅ Correct Answer: (B) RBI

📝 Explanation:
The Reserve Bank of India regulates the money market and oversees instruments like call money, treasury bills, and commercial papers.

✅ Correct Answer: (C) Reserve Bank of India

📝 Explanation:
The RBI is India’s central bank, responsible for monetary policy, issuing currency, and regulating the banking system.

✅ Correct Answer: (C) Allahabad Bank

📝 Explanation:
Allahabad Bank was among the 14 banks nationalized in 1969 during Indira Gandhi’s government.

✅ Correct Answer: (B) PMJDY

📝 Explanation:
The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched in 2014 to ensure access to financial services for all households.

✅ Correct Answer: (B) Regulating foreign trade

📝 Explanation:
Regulating foreign trade is primarily managed by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce.

🎯 Closing Whisper:

🕊️ Every economy is a dance of trust and flow.
Understand the banks — understand the heartbeat of a nation.

iasgenius.com

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🏛️ MCQs: Economy S001– Indian Banking System

🌿 Intro

🧩 10 MCQs:

Author: Ias Monk

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🌿 Intro

🧩 10 MCQs:

Author: Ias Monk

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