Indian Financial System Quiz

Which regulatory body oversees the banking sector in India?

• Securities and Exchange Board of India (SEBI)

• Insurance Regulatory and Development Authority of India (IRDAI)

• Reserve Bank of India (RBI)

• Pension Fund Regulatory and Development Authority (PFRDA)

What is the primary focus of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

• Financial inclusion

• Investment in infrastructure

• Regulatory compliance

• Corporate governance

What is a significant challenge faced by the Indian financial system related to public sector banks?

• High savings rate

• Non-Performing Assets (NPAs)

• Rapid technological adoption

• Diverse financial instruments

What role does the Reserve Bank of India (RBI) play in the financial system?

• Implementing monetary policy

• Regulating insurance

• Overseeing stock markets

• Managing pension funds

What is the impact of high levels of NPAs in the banking sector?

• Increased profitability

• Reduced lending capacity

• Enhanced credit provision

• Improved investor confidence

What is the significance of the Indian financial system in terms of economic growth?

• Resource mobilization

• Market efficiency

• Government financing

• All of the above

What is one of the key features of the Indian financial system?

• Emphasis on financial exclusion

• Underdeveloped bond markets

• Diverse institutional structure

• Lack of regulatory framework

What is the primary function of the financial system in terms of risk management?

• Providing credit

• Offering insurance and derivatives

• Mobilizing savings

• Facilitating foreign exchange

What has been a significant challenge in achieving financial inclusion in India?

• High savings rate

• Limited access to banking services

• Strong regulatory framework

• Rapid technological adoption

India's bond market, particularly the corporate bond segment, remains underdeveloped compared to its equity market.

• India's corporate bond segment is more developed than its equity market.
• India's corporate bond segment is underdeveloped compared to its equity market.
• India's bond market is fully developed and competitive.
• The equity market in India is less significant than the corporate bond segment.