Financial Services Module 1

How does financial system benefits suppliers of funds?

• By offering tax exxemption

• By ensuring safety and liquidity of their funds

• By discouraging them from savins

An increase in the saving rate leads to _______

• A decrease in the growth rate of economy

• Inflation and higher capital output ratio

• A increase in the growth rate of economy

When was IDBI established?

• 1956

• 1964

• 1982

• None of the above

Which institution was formed in 1982 to support rural development

• ICICI

• NABARD

• EXIM BANK

What is an example of State Finance Corporation?

• LIC

• NABARD

• Kerala Finance Corporation

Which of the following is an example of a non-marketable asset?

• Mutual Fund

• Bonds and Debentures

• Bank Deposits

What is the main reason of business organization to issue stock or share?

• To raise working Capital temporarily

• To mobilize fixed capital

• To repay old loans

Which institution control banking in India

• Ministry of Finance

• State bank of India

• Reserve Bank of India

• World Bank

What is the main purpose of financial market?

• To help people borrow and lend money

• To store goods

• To sell food items

• None of the above

What are primary securities?

• Securities directly issued to public

• Security issued banks only

• Security transferred between intermediaries'