Q154. What is the importance of the term “Interest Coverage Ratio” of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to give a loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give a loan to. 3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below.

Consider the following statements: 1. In India, credit rating agencies are regulated by the Reserve Bank of India. 2. The rating agency popularly known as ICRA

In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following? 1. Lending to trade and industry bodies when they

With reference to the Indian economy, consider the following statements: 1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of

Consider the following statements: 1. Tight monetary policy of the US Federal Reserve could lead to capital flight. 2. Capital flight may increase the interest

With reference to the Indian economy, consider the following statements: 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Dep

What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units 2. To supply credit to small and marginal

With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”? 1. The government can reduce the coupon rates on its borrowin

With reference to ‘Financial Stability and Development Council’, consider the following statements: 1. It is an organ of NITI Aayog. 2. It is headed by the Unio

The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term? 1. It is a network of a ban

The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following? 1. Other banks retain their deposits with the RBI. 2. The RBI

In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owed by households 2. Amounts outstanding on credit c

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. Not de

Why is the offering of “teaser loans” by commercial banks a cause of economic concern? 1. The teaser loans are considered to be an aspect of subprime lending an

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports by foreig

Consider the following statements: 1. In India , Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of Indi

What is/are the purpose/purposes of the Marginal Cost of the Fund-Based Lending Rate (MCLR) announced by RBI? 1. These guidelines help improve the transparency

With reference to the Indian Public Finance, consider the following statements: 1. External liabilities reported in the Union Budget are based on historical exc

The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

Consider the following statements: The nation-wide ‘Soil Health Card Scheme’ aims at: 1. Expanding the cultivable area under irrigation. 2. Enabling the banks t

With reference to India, consider the following: 1. Nationalization of Banks 2. Formation of Regional Rural Banks 3. Adoption of villages by Bank Branches Which

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increa

With reference to ‘Water Credit’, consider the following statements: 1. It puts microfinance tools to work in the water and sanitation sector. 2. It is a global

With reference to ‘Urban Cooperative Banks’ in India consider the following statements: 1. They are supervised and regulated by local boards set up by the State

Which of the following best describes the term ‘import cover’, sometimes seen in the news?

Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve bank of India

With reference to the Banks Board Bureau (BBB)’, which of the following statements are correct? 1. The Governor of RBI is the Chairman of BBB. 2. BBB recommends

Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) del

The Service Area Approach was implemented under the purview of

Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data

What was the purpose of the Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

The Chairman of public sector banks are selected by the:

Which of the following is not included in the assets of a commercial bank in India?

When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

With reference to the sectors of the Indian economy, consider the following pairs: | Economic activity | Sector | | :--- | :--- | | 1. Storage of agr