Banking 101 Webex - Quiz 1

What is the role of the intermediaries?

• To liaise with international financial institutions

• To resolve the mismatches between borrowers and lenders

• To regulate the financial services market

• To frame and implement the policies related to the financial market

Which of the following statements is true about MAS?

• MAS is the regulator for the banking sector, as well as insurance and capital markets sectors in Singapore

• Established in 1971 by combining the activities carried out by the various govt divisions till then

• MAS manages the liquidity position of the country by utilizing open market operations and not by altering the interest rates

• All of the above

In what way does the monetary policy employed by RBI affect the banks?

• Influence the availability of funds for credit, thereby affecting the earning potential for banks

• Impacts cost of funds used by banks for lending, leading to impact on profitability

• Manages the demand-supply mismatch thereby influencing the economic growth

• Affects demand in the economy, and thereby, demand for credit, leading to impact on interest earnings

Which of the below activities fall under the purview of the Banking Regulation Act? Select all that apply

• Grants power to RBI to issue banking licenses and branch licenses in India

• Authorises RBI to set the policy rates including the monetary policy

• Permits RBI to conduct liquidity management operations to manage inflation

• Authorises RBI to supervise the appointment of the boards and senior management of banks in India

Which is the key feature that distinguishes banks from other financial institutions, such as NBFCs

• Providing loans

• Sells insurance products

• Facilitates investments in capital markets

• Accepts deposits from general public