MCQs: Microfinance, NBFCs & Insurance in India
MCQs: Microfinance Institutions (MFIs), NBFCs, and Insurance Companies
Sharpen your knowledge on financial institutions and regulations. Perfect for exams like RBI Grade B, IBPS, SEBI Grade A, and more.
Q1: Which organization supported the SHG-Bank Linkage Program in India?
a) RBI
b) NABARD
c) SIDBI
d) SEBI
Q2: The Grameen Bank Model relies mainly on?
a) Physical collateral
b) Peer pressure and trust
c) Bank guarantees
d) Gold loans
Q3: What is the full form of SHG?
a) Small Help Group
b) Self-Help Group
c) Secure Housing Group
d) Social Help Guild
Q4: Which program was launched by NABARD in 1992 to link informal groups to banks?
a) Jan Dhan Yojana
b) SHG-Bank Linkage Program
c) Mudra Yojana
d) Stand-up India
Q5: Joint Liability Groups (JLGs) mainly support loans for?
a) Housing
b) Agriculture and allied activities
c) Gold purchase
d) Foreign trade
Q6: According to RBI’s 2022 directions, microfinance loan repayments should not exceed what percentage of household income?
a) 30%
b) 40%
c) 50%
d) 60%
Q7: Under RBI Fair Practices Code, MFIs must ensure?
a) High interest rates
b) No prepayment penalties
c) Coercive recoveries
d) None of these
Q8: An NBFC cannot accept which type of deposits?
a) Term Deposits
b) Demand Deposits
c) Fixed Deposits
d) Recurring Deposits
Q9: NBFCs in India are mainly regulated by?
a) SEBI
b) IRDAI
c) RBI
d) Ministry of Finance
Q10: Which of the following is a type of NBFC?
a) Asset Finance Company
b) Insurance Company
c) Payment Bank
d) Cooperative Bank
Q11: Owned Funds are calculated as?
a) Paid-up Equity + Reserves
b) Paid-up Equity - Reserves
c) Loan portfolio
d) Profit before tax
Q12: If an NBFC has Owned Funds = Rs. 50 lakhs and accumulated loss = Rs. 10 lakhs, the Net Owned Funds (NOF) will be?
a) Rs. 40 lakhs
b) Rs. 60 lakhs
c) Rs. 30 lakhs
d) Rs. 50 lakhs
Q13: NBFCs were categorized into layers under which regulatory framework?
a) Basel III Framework
b) Priority Sector Lending Framework
c) Scale Based Regulation (SBR)
d) SARFAESI Act
Q14: Which NBFC layer has the smallest institutions?
a) Base Layer
b) Middle Layer
c) Upper Layer
d) Top Layer
Q15: Which layer includes systemically important NBFCs?
a) Base Layer
b) Middle Layer
c) Top Layer
d) Lower Layer
Q16: What is the function of a Web Aggregator in Insurance?
a) Underwriting risk
b) Selling policies
c) Comparing insurance policies
d) Providing loans
Q17: TPAs (Third-Party Administrators) primarily handle?
a) Policy sales
b) Health claims and services
c) Life insurance underwriting
d) Fire insurance policies
Q18: What does "reinsurance" help insurers with?
a) Increasing risk exposure
b) Reducing premiums
c) Spreading and managing risk
d) Canceling claims
Q19: India's national reinsurer is?
a) LIC
b) GIC Re
c) IRDAI
d) Swiss Re
Q20: Which global reinsurer operates in India?
a) Swiss Re
b) LIC
c) NABARD
d) SIDBI
Q21: What is the purpose of an Insurance Repository?
a) Loan sanction
b) Claim settlement
c) Digital storage of policies
d) Sales through agents
Q22: Which of the following is a licensed Insurance Repository?
a) RBI
b) SEBI
c) CDSL
d) IRDAI
Q23: The electronic Insurance Account (eIA) was introduced by?
a) RBI
b) SEBI
c) IRDAI
d) NABARD
Q24: Insurance penetration refers to?
a) Number of policies sold
b) Insurance premiums as a % of GDP
c) Gross claim settlement
d) Agent commission
Q25: FDI limit in Indian insurance sector (as of latest policy) is?
a) 49%
b) 74%
c) 51%
d) 100%
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