Q350. What does MUDRA stand for in the context of Indian micro-enterprise finance?
[SSC CGL Tier I 2023]
A. Micro Units Development and Refinance Agency
B. Monetary Utility Development and Reserve Agency
C. Micro Universal Deposit and Revenue Authority
D. Market Units Development and Regulatory Authority
Answer: (A) Micro Units Development and Refinance Agency
Explanation: MUDRA was set up to support funding of micro enterprises, including by refinancing financial institutions serving them. The expanded name is Micro Units Development and Refinance Agency. Its role differs from RBI monetary policy and SEBI securities oversight.
Q349. Which agency is the principal regulator of microfinance institutions in India?
[SSC CGL Tier I 2023]
A. Securities and Exchange Board of India
B. Reserve Bank of India
C. Ministry of Corporate Affairs alone
D. Comptroller and Auditor General
Answer: (B) Reserve Bank of India
Explanation: The RBI regulates non-banking microfinance institutions and issues lending rules for the regulated microfinance sector. Microfinance generally involves small, often collateral-free loans to low-income households; prudential oversight seeks to protect borrowers and financial-system stability.
Q348. How many among the government bond market, call money market, treasury bill market and stock market belong to capital markets?
[UPSC CSE Prelims 2023]
A. Only one
B. Only two
C. Only three
D. All four
Answer: (B) Only two
Explanation: Long-maturity government bonds and corporate shares are capital-market instruments. Call money and treasury bills provide short-term funds and belong to the money market. Consequently two of the four specified markets are classified as capital markets.
Q347. In equity investing, what does the term beta measure?
[UPSC CSE Prelims 2023]
A. Simultaneous arbitrage across two markets
B. A stock’s return sensitivity to movements in the overall market
C. The absolute guaranteed return on a share
D. The cost of foreign-exchange conversion
Answer: (B) A stock’s return sensitivity to movements in the overall market
Explanation: Beta measures sensitivity of a stock’s returns to market returns, identifying its exposure to systematic market risk. A beta greater than one generally denotes amplified movements relative to the market, whereas a figure below one usually suggests smaller movements.
Q346. Which institution established the UDGAM online portal for tracing unclaimed bank deposits?
[RPSC RAS Prelims 2023]
A. University Grants Commission
B. National Highways Authority of India
C. Indian Space Research Organisation
D. Reserve Bank of India
Answer: (D) Reserve Bank of India
Explanation: The RBI launched UDGAM in August 2023 as a centralised search facility for unclaimed deposits across participating banks. The portal helps depositors and their families identify possible deposits without separately searching the websites of multiple institutions.
Q345. Which of these is not a selective credit-control measure?
[RPSC RAS Prelims 2023]
A. Change in lending margins
B. Sale of government securities
C. Credit rationing
D. Moral suasion
Answer: (B) Sale of government securities
Explanation: Selective credit controls target particular uses and types of lending through moral suasion, margin requirements or rationing. The sale of government securities is instead an open-market operation, a general quantitative instrument used to withdraw liquidity from the banking system.
Q344. In what year was the National Bank for Agriculture and Rural Development established?
[MPPSC Prelims 2023]
A. 1969
B. 1975
C. 1982
D. 1990
Answer: (C) 1982
Explanation: NABARD began operations in 1982 as India’s apex development financial institution for agriculture and rural development. It supports refinancing, institutional development, supervision of certain cooperative banks and rural financial systems. Its formation followed the recommendations of the CRAFICARD committee.
Q343. In which year did the Small Industries Development Bank of India commence operations?
[MPPSC Prelims 2023]
A. 1990
B. 1982
C. 1969
D. 2000
Answer: (A) 1990
Explanation: SIDBI was established in 1990 as the principal institution for promotion, financing and development of micro, small and medium enterprises. It assists through direct and indirect finance, refinancing and development programmes, while coordinating institutions working with smaller businesses.
Q342. How many additional banks were nationalised by the Government of India in 1980?
[MPPSC Prelims 2023]
A. Four
B. Six
C. Eight
D. Ten
Answer: (B) Six
Explanation: In April 1980, six more commercial banks were nationalised in a second major round of bank nationalisation. Fourteen banks had been nationalised in 1969. Both measures expanded public-sector banking and were associated with greater attention to credit access.
Q341. When is RBI monetary restraint least able, on its own, to bring inflation under control?
[WBCS Mains 2023]
A. When inflation stems from deficit finance, shortages and non-bank credit
B. Only when imports are zero
C. Only when bank deposits decline
D. Whenever fiscal revenue exceeds expenditure
Answer: (A) When inflation stems from deficit finance, shortages and non-bank credit
Explanation: Monetary restrictions chiefly affect aggregate demand and liquidity. Supply shortages, fiscal deficits and non-bank financing can sustain price pressures through different channels. Consequently credit tightening may not quickly neutralise every source of inflation without accompanying fiscal and supply-side measures.
