Q310. Which option represents a difficulty of barter rather than a function fulfilled by money?
[SSC CGL Tier I, 17 Jul, Shift 3 2023]
A. Medium of exchange
B. Store of value
C. Difficulty in storing goods
D. Unit of account
Answer: (C) Difficulty in storing goods
Explanation: Money overcomes practical problems of barter by acting as a medium of exchange, store of value, unit of account and means of deferred payment. Difficulty in storage is a problem money can alleviate, not its economic function.
Q309. Which regulator oversees eligible microfinance NBFCs in India?
[SSC CGL Tier I, 14 Jul, Shift 4 2023]
A. SEBI
B. Reserve Bank of India
C. Election Commission
D. NSE
Answer: (B) Reserve Bank of India
Explanation: NBFC-MFIs operate within the RBI regulatory framework, including applicable rules on qualifying microfinance loans, customer conduct, income assessment and disclosures. SEBI primarily regulates securities markets, not NBFC micro-lending.
Q308. Place the establishment of IFCI, ICICI and IDBI in correct chronological order.
[SSC CGL Tier I, 14 Jul, Shift 3 2023]
A. ICICI → IFCI → IDBI
B. IFCI → ICICI → IDBI
C. IDBI → ICICI → IFCI
D. ICICI → IDBI → IFCI
Answer: (B) IFCI → ICICI → IDBI
Explanation: IFCI was established in 1948, ICICI in 1955 and IDBI in 1964. Their successive creation reflects the post-Independence development of specialised institutions to support industrial finance in India.
Q307. What is the full expansion of the abbreviation MUDRA in Indian micro-enterprise finance?
[SSC CGL Tier I, 14 Jul, Shift 3 2023]
A. Micro Units Development and Refinance Agency
B. Micro Urban Deposits and Reserves Authority
C. Medium Units Development and Regulatory Agency
D. Money Users Development and Risk Association
Answer: (A) Micro Units Development and Refinance Agency
Explanation: MUDRA stands for Micro Units Development and Refinance Agency. It was introduced to support the financing ecosystem for small and micro businesses, primarily through lending partners under the applicable government programme.
Q306. Which equation is Irving Fisher’s familiar equation of exchange?
[SSC CGL Tier I, 14 Jul, Shift 2 2023]
A. MP = VT
B. MV = PT
C. MV = P + T
D. M = V + P + T
Answer: (B) MV = PT
Explanation: In Fisher’s identity, M denotes money supply, V its velocity of circulation, P the price level and T the volume of transactions. MV = PT links nominal spending with prices and transactions under the accounting interpretation.
Q305. Which committee proposed a separate NBFC–microfinance institution category?
[SSC CGL Tier I, 27 Jul, Shift 2 2023]
A. Shah Committee
B. Malegam Committee
C. Sarkaria Commission
D. Kelkar Committee
Answer: (B) Malegam Committee
Explanation: The Y. H. Malegam committee reviewed microfinance after a sector crisis and made recommendations that informed RBI’s NBFC-MFI regulatory classification. Its work emphasised conduct, borrower safeguards and supervision.
Q304. Which organisation began the Self Help Group–Bank Linkage Programme in 1992–93?
[SSC CGL Tier I, 27 Jul, Shift 1 2023]
A. SIDBI
B. NABARD
C. SEBI
D. IDBI
Answer: (B) NABARD
Explanation: NABARD pioneered and supported the SHG–Bank Linkage Programme, linking community savings groups with formal banking credit. The model expanded financial access and collective financing options, particularly among rural and low-income households.
Q303. Under SLR rules, banks maintain prescribed liquid assets against which broad liability base?
[SSC CGL Tier I, 26 Jul, Shift 2 2023]
A. Only fixed deposits
B. Net demand and time liabilities
C. Only savings balances
D. The bank’s authorised share capital
Answer: (B) Net demand and time liabilities
Explanation: The statutory liquidity ratio is calculated on net demand and time liabilities. Eligible cash, gold and government-approved securities can meet the requirement, providing a mandatory liquidity buffer within the regulated banking system.
Q302. Which institution formed in 1982 is dedicated to agriculture and rural development finance?
[SSC CGL Tier I, 26 Jul, Shift 2 2023]
A. IFCI
B. NABARD
C. National Stock Exchange
D. PFRDA
Answer: (B) NABARD
Explanation: NABARD was established in 1982 as the apex development bank for agriculture and rural development. It supports rural credit through refinancing, institution-building and developmental programmes involving banks and other eligible agencies.
Q301. Which among Canara Bank, UCO Bank, Indian Overseas Bank and Bandhan Bank is not a public-sector bank?
[SSC CGL Tier I, 26 Jul, Shift 1 2023]
A. Canara Bank
B. UCO Bank
C. Indian Overseas Bank
D. Bandhan Bank
Answer: (D) Bandhan Bank
Explanation: Bandhan Bank is a private-sector bank, unlike the three named public-sector banks. The ownership classification matters because scheduled commercial banks can be public-sector, private-sector, foreign and other specialised categories.
