Which of the following is a feature of the Indian banking system? MCQ with Answer and Explanation

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Which of the following is a feature of the Indian banking system?

A. Absence of priority sector lending norms

B. Dual regulation of cooperative banks by RBI and state governments

C. No role for foreign banks

D. Complete absence of NBFCs

Answer: Option B

Solution (By JKSSB Mock Tests)

Urban and rural cooperative banks in India are subject to dual regulation by the Reserve Bank of India and the respective state governments.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on demerit goods is generally:

A. 5%

B. 28% plus cess

C. 18%

D. 12%

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Correct Answer: Option B

Explanation:
Demerit goods like tobacco and aerated drinks attract 28% plus cess.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Nifty 50' index comprises how many stocks of NSE?

A. 100

B. 30

C. 200

D. 50

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Correct Answer: Option D

Explanation:
Nifty 50 comprises 50 stocks of NSE.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the 'Uncovered Interest Parity' puzzle or forward-premium puzzle?

A. High-interest currencies tend to appreciate rather than depreciate as uncovered interest parity would predict

B. Forward rates are perfect predictors of future spot rates

C. High-interest currencies always depreciate as predicted

D. Interest differentials are always zero

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Correct Answer: Option A

Explanation:
Empirical evidence often shows that currencies with high interest rates tend to appreciate, contrary to the prediction of uncovered interest parity that they should depreciate; this is known as the forward-premium puzzle.

This question belongs to: Economy GK Economy Set 1

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