A payment bank in India can accept demand deposits up to a maximum of: MCQ with Answer and Explanation

Question

Share Report Error

A payment bank in India can accept demand deposits up to a maximum of:

A. Rs 1 lakh

B. Rs 50,000

C. Rs 5 lakh

D. Rs 2 lakh

Answer: Option A

Solution (By JKSSB Mock Tests)

Payment banks can accept demand deposits up to Rs 1 lakh per customer.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

In the context of production theory, an isoquant represents:

A. Combinations of prices that maximise profit

B. Combinations of income and consumption

C. Combinations of two inputs that produce the same level of output

D. Combinations of two goods that give the same utility

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
An isoquant is a locus of points showing different combinations of two inputs that yield the same quantity of output.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of 'Reference-Dependent Preferences'?

A. Only absolute levels of wealth matter

B. Only final wealth enters utility

C. Outcomes are evaluated relative to a reference point, generating gains and losses

D. Reference points are irrelevant

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Reference-dependent preferences, central to prospect theory, evaluate outcomes as gains or losses relative to a reference point rather than in terms of final absolute wealth levels.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of banking theory, the 'Diamond-Dybvig' model explains:

A. The existence of banks as providers of liquidity insurance and the possibility of bank runs

B. Why banks never face runs

C. Only the role of banks in monitoring firms

D. Only the role of banks in solving adverse selection

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The Diamond-Dybvig model shows that banks transform illiquid assets into liquid liabilities, providing liquidity insurance to depositors, but that this arrangement is vulnerable to self-fulfilling runs.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs