1. With respect to the financial sector of the country, A C Shah committee is associated with ________.

A. Unemployment B. Data Security C. Non-Banking Financial Company D. Agriculture Financing E. Public Sector banks

2. Which of the following financial institutions has bought 14% stake in micro-financier Annapurna Finance for ₹ 137 Crore?

A. AIIB B. ADB C. EBRD D. NDB E. None of the above

3. What is the limit of hospitalization coverage under Rashtriya Swasthya Bima Yojana Scheme?

A. Rs. 20000 per annum B. Rs. 30000 per annum C. Rs. 40000 per annum D. Rs. 50000 per annum E. Rs. 60000 per annum

4. ___________ is not one of the pillars of BASEL Capital accord.

A. Minimum capital requirements B. Supervisory review of an institution’s capital adequacy and internal assessment process C. Market discipline through effective disclosure to encourage safe and sound banking practices D. Off-Balance Sheet exposures E. Both (a) & (b)

5. As per the BSE & NSE Laws, a broker cannot charge more than ______% brokerage from his clients.

A. 2.5 % B. 4.5 % C. 0.5 % D. 7.5 % E. None of the above

Answers and Explanations
1. Answer - Option C
Explanation -
The A C Shah Committee on deposit insurance for non-banking finance companies (NBFCs) has recommended that General Insurance Corporation (GIC) and Deposit Insurance and Credit Guarantee Corporation (DICGC) provide the risk cover. The committee is in favour of voluntary risk cover.
2. Answer - Option B
Explanation -
The Asian Development Bank (ADB) bought a 14% stake in micro-financier Annapurna Finance for Rs 137 crore, reinforcing the belief that India’s microfinance sector is on course to attracting long-term funds from global lenders and investors.
3. Answer - Option B
Explanation -
Rashtriya Swasthya Bima Yojana (RSBY) a Health Insurance Scheme for the Below Poverty Line families with the objectives to reduce OOP expenditure on health and increase access to health care. The Rashtriya Swasthya Bima Yojana (RSBY) offers medical insurance up to Rs 30,000 for a family of five living below the poverty line.
4. Answer - Option D
Explanation -
Off-Balance Sheet is not one of the pillars of BASEL Capital accord.
It refers to the business activities of a bank that generally do not involve booking assets (loans) and taking deposits. Off-balance sheet activities normally generate fees but produce liabilities or assets that are deferred or contingent and thus, do not appear on the institution’s balance sheet until and unless they become actual assets or liabilities.
5. Answer - Option A
Explanation -
The maximum brokerage that can be charged by a broker has been specified in the Stock Exchange Regulations and hence, it may differ from across various exchanges. As per the BSE & NSE Laws, a broker cannot charge more than 2.5% brokerage from his clients.

1. Which of the following bank has topped the EASE Reforms index released by Union Minister of Finance & Corporate Affairs?

A. State Bank of India B. Punjab National Bank C. Union Bank of India D. HDFC Bank E. Corporation Bank

2. Which of the following organisation has approved USD 455 Million loan for the Andhra Pradesh Rural Roads Project recently (March 2019)?

A. Asian Development Bank B. World Bank C. International Monetary Fund (IMF) D. Asian Infrastructure Investment Bank (AIIB) E. New Development Bank (NDB)

3. What do you understand by term ‘Venture Capital’?

A. A short-term capital provided to industries B. A long-term start-up capital provided to new entrepreneurs C. Funds provided to industries at times of incurring losses D. Funds provided for replacement and renovation of industries E. None of these

4. What will be the global economy growth in 2019 forecasted by the Organisation for Economic Co-Operation & Development recently in March?

A. 3.6% B. 3.4% C. 3.5% D. 3.2% E. 3.3%

5. Which of the following has been awarded the best Mini-Ratna PSU in strategic performance (financial category) at the ‘Governance Now’ Sixth PSU awards?

A. Numaligarh Refinery Limited B. Chennai Petroleum Corporation C. ONGC Videsh Limited D. Cochin Shipyard E. MisraDhatu Nigam Ltd.

Answers and Explanations
1. Answer - Option B
Explanation -
Punjab National Bank (PNB) has secured the top spot among all public sector banks in EASE Reforms index released by Union Minister of Finance & Corporate Affairs.
2. Answer - Option D
Explanation -
A loan agreement of USD 455 million was signed between the Asian Infrastructure Investment Bank (AIIB) and the Government of India for financing the Andhra Pradesh Rural Roads Project.
3. Answer - Option B
Explanation -
Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
4. Answer - Option E
Explanation -
The interim outlook report by OECD predicts the growth rate of 3.3% for 2019 and 3.4% for 2020, owing to trade disputes and uncertainty over Brexit that would largely affect the world commerce and business.
5. Answer - Option A
Explanation -
In January 2019, Numaligarh Refinery Limited (NRL) received best Miniratna PSU in strategic performance financial category award at an award function held In New Delhi. Numaligarh Refinery Limited is a mini ratna company in Assam owned by Bharat Petroleum. It is a joint venture between Bharat Petroleum, Oil India and Government of Assam.

1. Which of the following is NOT true regarding Commercial Paper (CP)?

A. CP was introduced in India in 1990. B. Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP. C. CP is unsecured money market instrument issued in the form of a promissory note. D. CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year. E. CP can be issued in denominations of Rs. 10 lakh or multiples thereof.

2. State-owned lender Punjab National Bank (PNB) had sold stake in its housing finance arm, PNB Housing Finance (PNBHF) to General Atlantic Group and Varde Partners for___________.

A. Rs 1,375 crore B. Rs 2,565 crore C. Rs 1,000 crore D. Rs 1,570 crore E. Rs 1,851 crore

3. According to the ADB’s latest Asian Development Outlook report, gross domestic product in India will increase by _______ in 2019.

A. 7.6 % B. 7.5 % C. 7.7% D. 7.9 % E. 7.2 %

4. How much will be invested by National Investment and Infrastructure Fund (NIIF) and global private infrastructure operator ROADIS in road projects in India?

A. $1 billion B. $2 billion C. $3 billion D. $4 billion E. $5 billion

5. What is PAC?

A. Pre-Authorized Checking B. Process-Authorized Chequing C. Pre-Authorized Chequing D. Post-Authorized Cheque E. None of these

Answers and Explanations
1. Answer - Option E
Explanation -
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. It was introduced in India in 1990 with a view to enabling highly rated corporate borrowers to diversify their sources of short-term borrowings. Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP. CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. CP can be issued in denominations of Rs.5 lakh or multiples thereof.
2. Answer - Option E
Explanation -
State-owned Punjab National Bank (PNB) will partially sell its stake in PNB Housing Finance to global private equity firm General Atlantic Group and alternative investment firm Varde Partners for Rs 1,851.6 crore.
3. Answer - Option E
Explanation -
Asian Development Bank (ADB) lowered India’s growth by 40 basis points to 7.2 per cent in fiscal year 2019-20. Still. It will be fastest growing economy in the world. The growth rate in FY 2020 – 21 is likely to be 7.3 per cent.
4. Answer - Option B
Explanation -
Private infrastructure investor ROADIS and the national investment and infrastructure fund (NIIF) have come together to create a platform for investing up to $2 billion in road projects in India.
5. Answer - Option C
Explanation -
Pre-Authorized Chequing is an authorization by the insured to allow the Insurance Company to automatically withdrawal theirs insurance payments from their chequing account.