Module V Banking Theory and Practices

What is financial literacy?

• The ability to count money

• Knowledge and skills to make informed financial decisions

• A scheme for rural banking

• A government subsidy program

What is the main objective of financial inclusion?

• Provide financial access to all sections of society

• Reduce government intervention in banking

• Promote only large-scale corporate lending

• Restrict banking services to urban areas

Which organization in India is primarily responsible for financial inclusion initiatives?

• SEBI

• IRDAI

• RBI

• NITI Aayog

What is the full form of PMJDY?

• Pradhan Mantri Jan Dhan Yojana

• Prime Minister’s Joint Deposit Yojana

• Public Money Joint Development Yojana

• Personal Monetary Joint Development Yojana

Which of the following is a key feature of PMJDY?

• No minimum balance requirement

• Mandatory credit card issuance

• Only for salaried individuals

• Restricted to urban areas

What is the main role of Small Finance Banks (SFBs)?

• Serve large corporate clients

• Provide financial services to underserved sections

• Only manage foreign currency transactions

• Focus on venture capital funding

Priority Sector Lending (PSL) mandates banks to allocate a percentage of their loans to?

• Corporate businesses

• Stock market investors

• Agriculture, MSMEs, and weaker sections

• Only government enterprises

What does PSL stand for in banking?

• Primary Savings Lending

• Priority Sector Lending

• Public Service Loans

• Personal Security Loan

Which organization is responsible for promoting rural banking in India?

• SEBI

• NABARD

• NASSCOM

• Ministry of Urban Development

What does NABARD stand for?

• National Agriculture and Banking Development

• National Bank for Agriculture and Rural Development

• National Banking and Reserve Department

• None of the above