Tag: nationalisation and privatisation of banks

Questions Related to nationalisation and privatisation of banks

Which of the following was a cause for nationalization of Commercial Banks?

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. Encouragement of speculative activities

  2. Neglect of Agricultural Sector

  3. Violation of Banking Norms

  4. All of the above

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Correct Option: D

Which of the following was a cause for nationalization of Commercial Banks?

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. Concentration of economic power

  2. Neglect of Priority Sectors

  3. Urban bias

  4. All of the above

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Correct Option: D

Before nationalisation, Commercial Banks in India were having their branches in _________.

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. urban areas

  2. rural areas

  3. semi-urban areas

  4. all of the above

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Correct Option: A

The objective of nationalization is -

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. To control the height of economy.

  2. To meet progressively the needs of development of the economy

  3. Both (a) and (b)

  4. None of the above

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Correct Option: C

Nationalisation of Banks aimed at all of the following except _________________.

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. removal of control by a few

  2. provision of credit to big industries only

  3. provision of adequate credit for agriculture, small industry and export units

  4. encouragement of a new class of entrepreneurs

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Correct Option: B

In the context of Foreign Exchange Management, RBI performs which of the following functions?

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. Enter into Foreign Exchange transactions on its own and Government account

  2. Borrowing from IMF to meet Balance of Payments problems

  3. Administer the provisions of Foreign Exchange Management Act

  4. All of the above

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Correct Option: D

After nationalisation, the number of Bank Branches have _____________.

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. increased

  2. decreased

  3. retained constant

  4. nothing can be said

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Correct Option: A

____________ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bill held by commercial Banks.

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. CRR

  2. SLR

  3. Bank rate

  4. Interest rate

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Correct Option: C
Explanation:

Bank rate is the official minimum rate at which the Central Bank of a country (RBI in India) is prepared to rediscount approved bills held by commercial banks in the country.

What led to the need for New Economic Policy in India?

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. Gulfcrises

  2. Bad performance of public sector

  3. Inflation

  4. All of the above

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Correct Option: D
Explanation:

Gulf crisis, bad performance of public sector and inflation led to the need for New Economic Policy in India. New Economic Policy was adopted by the Central government of India in the year of 1991. It has given emphasis on liberalization, privatization and globalization.

Which of the following factor is not responsible for nationalization of commercial banks?

history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

  1. Private ownership

  2. Urban bias

  3. Government policy

  4. Violation of norms

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Correct Option: C