In the context of the Indian Financial System, the 'National Housing Bank' (NHB) was established as a wholly owned subsidiary of which institution? MCQ with Answer and Explanation

In the context of the Indian Financial System, the 'National Housing Bank' (NHB) was established as a wholly owned subsidiary of which institution?
A. Ministry of Finance
B. Reserve Bank of India
C. State Bank of India
D. Securities and Exchange Board of India
Answer: Option B
Solution (By JKSSB Mock Tests)
The National Housing Bank (NHB) was set up in 1988 as a wholly owned subsidiary of the Reserve Bank of India (RBI) to regulate and promote housing finance institutions. (Note: It was later transferred to the central government in 2019, but historically it was an RBI subsidiary).

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is NOT a component of financial statements for a sole proprietorship?
A. Trading Account
B. Balance Sheet
C. Statement of Changes in Equity
D. Profit & Loss Account

Correct Answer: Option C


Explanation:
Statement of Changes in Equity is typically a required component for corporate entities under Ind AS, not for standard sole proprietorships.

Question #2
The 'Government Accounting Standards Advisory Board' (GASAB) was established by:
A. Ministry of Finance
B. RBI
C. ICAI
D. Comptroller and Auditor General (CAG) of India

Correct Answer: Option D


Explanation:
GASAB is under CAG to formulate accounting standards for government.

Question #3
Under 'Ind AS 21', foreign currency monetary items are translated at:
A. Opening rate
B. Closing rate
C. Average rate
D. Historical rate

Correct Answer: Option B


Explanation:
Monetary items are translated at the closing rate at the reporting date.