Financial Organisations MCQ Quiz - Objective Question with Answer for Financial Organisations - Download Free PDF

The correct answer is K V Kamath.

Key Points

• K V Kamath was the first President of the New Development Bank (NDB), appointed in July 2015.
• The New Development Bank was established by the BRICS countries (Brazil, Russia, India, China, and South Africa) with the purpose of funding infrastructure and sustainable development projects.
• K V Kamath served as the President of the NDB from its inception until May 2020.
• He is a renowned Indian banker, known for his leadership at ICICI Bank, where he significantly contributed to the growth of India's banking sector.
• The headquarters of the New Development Bank is located in Shanghai, China.

Additional Information

• New Development Bank (NDB):
  • It was formally launched during the 6th BRICS Summit held in Fortaleza, Brazil, in July 2014.
  • The primary objective of the bank is to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies.
  • The NDB aims to complement the efforts of existing multilateral financial institutions like the World Bank and IMF.
• K V Kamath's Contributions:
  • Before joining NDB, K V Kamath was the Managing Director and CEO of ICICI Bank, transforming it into one of India’s largest private-sector banks.
  • He has received several prestigious awards, including the Padma Bhushan in 2008, for his contributions to trade and industry.
• BRICS:
  • BRICS is an acronym for an association of five emerging economies: Brazil, Russia, India, China, and South Africa.
  • It was formally established in 2006, with the first summit held in 2009.
  • BRICS nations account for around 40% of the world’s population and over 25% of global GDP.
• Current Leadership of NDB:
  • As of 2023, Dilma Rousseff, the former President of Brazil, serves as the President of the NDB.
  • The leadership transition reflects the rotational nature of the presidency among BRICS member states.

The correct answer is 1992.

Key Points

• The Securities and Exchange Board of India (SEBI) was established in 1992 as a statutory regulatory body under the SEBI Act, 1992.
• It was created to protect the interests of investors in securities and promote the development and regulation of the securities market in India.
• SEBI's headquarters is located in Mumbai, Maharashtra, with regional offices in New Delhi, Chennai, Kolkata, and Ahmedabad.
• The regulator oversees activities related to the stock market, mutual funds, brokers, sub-brokers, and other intermediaries involved in the securities market.
• The establishment of SEBI marked a significant milestone in strengthening market transparency and curbing unethical practices in the Indian financial sector.

Additional Information

• SEBI Act, 1992:
  • The SEBI Act, 1992, grants SEBI the authority to regulate and develop India's securities market.
  • It empowers SEBI to investigate, impose penalties, and take legal action against entities violating market regulations.
  • The Act also provides SEBI with the power to draft regulations for market participants and intermediaries.
• Functions of SEBI:
  • Protecting investor interests through transparency and disclosures.
  • Regulating stock exchanges, brokers, and other intermediaries.
  • Promoting the development of the securities market and ensuring its orderly functioning.
  • Prohibiting fraudulent and unfair trade practices in the market.
• Key Regulations Introduced by SEBI:
  • Takeover Code (1994) – Regulating mergers and acquisitions of listed companies.
  • Insider Trading Regulations (1992, revised later) – Preventing misuse of confidential information.
  • Mutual Fund Regulations – Ensuring transparency in mutual fund operations.
• Role in Investor Education:
  • SEBI actively conducts workshops and campaigns to educate retail investors.
  • It provides resources like investor guides and complaint redressal systems to ensure informed investment decisions.

• National Securities Depositories Limited(NSDL) and Central Depositories Services Limited(CDSL) are the two depositories registered with SEBI.

The correct answer is Securities Exchange Board of India (SEBI).

Key Points

• SEBI stands for the Securities Exchange Board of India.
• It was established on April 12, 1988, and given statutory powers on January 30, 1992, through the SEBI Act, 1992.
• SEBI's primary role is to regulate the securities market in India and protect the interests of investors in securities.
• The regulatory body has the authority to oversee, regulate, and develop the Indian securities market by enforcing rules and regulations.

Additional Information

• National Development Council (NDC)
  • The National Development Council is the apex body responsible for approving the planning and development policies and strategies in India.
  • It was established on August 6, 1952.
  • The NDC aims to strengthen and mobilize the efforts and resources of the nation for plan development.
  • It includes the Prime Minister, Chief Ministers of all states, and members of the Planning Commission.
• Joint Stock Company
  • A Joint Stock Company is a business entity where shares of the company's stock can be bought and sold by shareholders.
  • Each shareholder owns company stock in proportion to their shares.
  • It can be a public or private company.
  • Examples include companies listed on stock exchanges.
• Steel Authority of India Ltd. (SAIL)
  • SAIL is one of the largest steel-making companies in India.
  • It was founded in 1954 and operates under the Ministry of Steel, Government of India.
  • SAIL produces iron and steel at five integrated plants and three special steel plants.
  • It is not a regulatory body but a public sector enterprise.
• Securities Exchange Board of India (SEBI)
  • SEBI was established to regulate the securities market in India.
  • It ensures that the securities market operates in an orderly manner.
  • SEBI protects the interests of investors by enforcing regulations.
  • It also promotes and regulates the development of the securities market in India.

The correct answer is 60%

Key Points

• The Prime Minister’s Task Force on MSMEs recommended that 60% of total MSME lending be allocated to micro-enterprises.
• This allocation ensures adequate financial support for the smallest units within the MSME ecosystem.
• The focus on micro-enterprises strengthens grassroots entrepreneurship and employment.
• It is part of the broader strategy to enhance credit flow to underserved segments.

Additional Information

• Micro-enterprises: Defined as entities with lower investment and turnover thresholds under the MSMED Act.
• Priority Sector Lending: Ensures fair distribution of financial resources across micro, small, and medium enterprises.

Option 4 is correct, i.e. Axis bank.

• The name of UTI Bank was changed to Axis bank ltd on 30^th July 2007.
• It was the third-largest private sector lender bank in India at that time.
• The change in name was considered for avoiding confusion between the other UTI brand, so executive director R Ashok Kumar gave this statement in 2007.
• The UTI bank is owned by a UTI Management company.
• UTI stands for Unit Trust of India.

• The headquarters of the World Bank is in the United States of America (USA).
• Its headquarters is in Washington D.C. USA.
• It has a total membership of 189 countries.
• Along with the International Monetary Fund (IMF), the World Bank was established in the year 1945.
•  IMF also has its headquarters in Washington D.C.

NABARD(National Bank for Agriculture and Rural Development) was established in 1982.

• It is an Apex Financial Institution for Growth in India.
• It was formed to enforce the National Bank for Agriculture and Rural Development Act 1981 on 12 July 1982 on the recommendations of the B.Sivaramman Committee, (by Parliament Act 61, 1981).
• It is the India's Agriculture and Rural Development Specialized Bank.
• The headquarters is situated in Mumbai.

The correct answer is 1927.

Key Points

• The Federation of Indian Chambers of Commerce and Industry (FICCI) is a non-profit trade organization and lobbying organization located in India.
• In 1927, Indian businessmen Mr. G D Birla and Purshottamdas Thakurdas launched the company on Mahatma Gandhi's recommendation.
• It is India's largest, most influential, and oldest commercial organization.
• It is a non-governmental, non-profit organization. Members of FICCI come from the private and public sectors, as well as SMEs and multinational enterprises.
• The chamber has around 250,000 indirect members through a variety of regional chambers of commerce.
• It focuses on firm development, advertising, and networking in a given industry.

Important Points

• It is based in New Delhi, India's capital, and operates in 12 states and eight countries worldwide.
• India's only national ATA Carnet issuing and assuring organization is the FICCI.
• ATA Carnets are used to carry temporary equipment across borders by TV/film crews, journalists, engineers, musicians, and industry.

The correct answer is SEBI

• SEBI stands for the Securities and Exchange Board of India.
  • It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.
  • Its main work is to regulate the capital market.
• RBI stands for the Reserve Bank of India. It was established in 1935.
  •  The present governor of RBI is Shaktikanta Das.
• BSE stands for the Bombay Stock Exchange.
  • It is the first securities market in India and it was set up in 1875.
• NSE stands for National Stock Exchange.
  • It was set up in 1992 to provide a modern electronic trading system.

• The World Bank’s Board of Executive Directors has approved a fast-track $1 billion India COVID-19 Emergency Response and Health Systems Preparedness Project.
• It will help India prevent, detect, and respond to the COVID-19 pandemic and strengthen its public health preparedness.
• This is the largest ever health sector support from the Bank to India. 

Option 3 is correct, i.e. Honours Your Trust.

• Founded in 1943, UCO Bank is a commercial bank and a Government of India Undertaking. 
• Atul Kumar Goel is the MD & CEO of UCO Bank.

The correct answer is Small Industries Development Bank of India.

Key Points

• SIDBI stands for Small Industries Development Bank of India.
• Small Industries Development Bank of India (SIDBI) was set up on 2nd April 1990 under an Act of the Indian Parliament.
• It was formed in the year 1990.
• It is the apex regulatory body for the licensing and regulation of micro, small and medium enterprise finance companies in India.
• It comes under the jurisdiction of the Ministry of Finance.
• Its headquarters is located at Lucknow, Uttar Pradesh.
• SIDBI is regulated and supervised by the Reserve Bank of India.

The correct answer is 1956.

Life Insurance Corporation (LIC) of India was established in 1956.

Key Points

• The Life Insurance Corporation of India was founded when the Parliament of India passed the Life Insurance of India Act that nationalised the insurance industry in India.
• Life Insurance Corporation of India is an Indian state-owned insurance group and investment corporation owned by the Government of India.
• The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Kolkata in 1818.
• Surendranath Tagore had founded Hindusthan Insurance Society, which later became Life Insurance Corporation.
• The LIC's executive board consists of Chairman, currently M R Kumar, and Managing Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar.

The correct answer is the Central Statistics Office.

• The Central Statistics Office (CSO), under the Ministry of Statistics and Program Implementation, is responsible for calculating the GDP of India, macroeconomic data gathering, and statistical record keeping.
• The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy.
  • GDP can be calculated by using three methods, the supply or production method, the income method, and the demand or expenditure.

Important Points

• Ministry of Finance under the government of India, is concerned with the economy of India. Serving as the treasury department of India.
  • R. K. Shanmukham Chetty was the first Finance Minister of independent India.
  • It formed on 29 October 1946.
  • The present Minister is Nirmala Sitharaman.
• RBI is the central banking institution, which controls the monetary policy of the Indian rupee, fully owned by the Government of India.
  • It was established on 1st April 1935 in Kolkata but nationalized on 1st January 1949.
  • RBI consists of Governor, 4 Deputy Governors, 2 Finance Ministry representatives.
  • The First Governor of RBI was Sir Osborne Smith (1935 – 1937).
  • The First Indian Governor of RBI was CD Deshmukh (1943 – 1949).
  • The only Prime Minister who was the Governor of RBI was Manmohan Singh (1982 – 1985).
  • The First women deputy Governor of RBI was KJ Udeshi.
  • The present Governor is Shaktikanta Das.
• The Chief Economic Adviser (CEA) is one of the bodies of Government of India, head of the Economic Division of the Department of Economic Affairs.
  • The key roles of India’s chief economic advisor are to determine the government’s overall strategy in managing the economy.
  • CEA advises the Government of India on matters related to finance, commerce, trade, economy and directly report to the Minister of Finance.