What is the objective of the Pradhan Mantri Fasal Bima Yojana (PMFBY)?
ATo provide health insurance to farmers
BTo provide crop insurance coverage against crop failure
CTo subsidize fertilizer costs
DTo provide agricultural loans at zero interest
Correct Answer:
B. To provide crop insurance coverage against crop failure
Explanation:
PMFBY provides comprehensive crop insurance coverage to farmers against crop failure due to natural calamities, pests, and diseases at affordable premiums.
Which international standard governs anti-money laundering and counter-terrorist financing?
AISO 9001
BFATF (Financial Action Task Force) guidelines
CBasel II Accord
DDodd-Frank Act
Correct Answer:
B. FATF (Financial Action Task Force) guidelines
Explanation:
The Financial Action Task Force (FATF) establishes international standards for combating money laundering and terrorist financing. India complies with FATF recommendations.
Under Basel III norms, what is the minimum Common Equity Tier-1 (CET-1) ratio requirement for banks?
A4.5%
B5.5%
C6.5%
D8%
Correct Answer:
A. 4.5%
Explanation:
Basel III prescribes a minimum CET-1 ratio of 4.5% of risk-weighted assets. India has implemented Basel III norms with additional conservation buffers.
ASystem for Worldwide International Financial Transactions
BSociety for Worldwide Interbank Financial Telecommunication
CSoftware for World Integrated Financial Trading
DSecure Web Interface for Financial Transactions
Correct Answer:
B. Society for Worldwide Interbank Financial Telecommunication
Explanation:
SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a secure international messaging system used for cross-border fund transfers.
Which of the following is NOT covered under the definition of a 'Non-Banking Financial Company' (NBFC)?
AFinance companies
BMerchant banks
CCommercial banks
DInvestment companies
Correct Answer:
C. Commercial banks
Explanation:
Commercial banks are not NBFCs. NBFCs are financial institutions that provide lending and other financial services but cannot accept deposits from the general public.
What does the term 'Liquidity Coverage Ratio (LCR)' measure?
AThe ability of a bank to meet its short-term obligations
BThe ratio of total assets to total liabilities
CThe percentage of non-performing assets
DThe profitability of a bank
Correct Answer:
A. The ability of a bank to meet its short-term obligations
Explanation:
LCR under Basel III measures a bank's ability to survive a severe liquidity stress scenario lasting 30 days by maintaining sufficient high-quality liquid assets.
