TYBMS SEM-6: Finance: Financing Rural Development (Most Imp Objective Questions with Solution)

  Paper/Subject Co: 86614/Elective: Finance: Financing Rural Development

TYBMS SEM-6: Finance: 

Financing Rural Development

(Most Imp Objective Questions with Solution)

Q.1.a. State whether the following statements are true or False: (Any 8)        (8)

1) Microfinance primarily targets low-income individuals and communities. 

Ans: True

2) Microfinance has been credited with helping to alleviate poverty by providing financial resources to those who otherwise wouldn't have access to them.

Ans: True

3) Cooperative banks are regulated and supervised by central banking authorities.

Ans: True

4) Cooperative banks operate solely for profit, similar to commercial banks.

Ans: False

5) MSMEs are only found in certain sectors of the economy, such as manufacturing and services.

Ans: False

6) MSMEs face fewer challenges compared to large enterprises.

Ans: False

7) NPAs only impact the profitability of banks and have no broader implications for the economy.

Ans: False

8) The Banking Regulation Act of 1949 does not address issues related to capital adequacy and risk management in banks.

Ans: False

9) MFIs have no regulatory oversight and operate without supervision.

Ans: False

10) Transaction risk can be mitigated through effective internal controls and risk management practices.

Ans: True

Q.1.b. Match the following (any 7):            (7)

Column A	Column B
1. One of the issues in rural area	1) Accelerating the socio-economic -development of rural India
2. Ministry of rural development	2) Refinances microfinance activities of NGOS
3.Rastriya Mahil Kosh	3) No continuous supply of electricity
4. Mission of NRLM	4) Democratized funding
5. Micro enterprise	5) Part of bank's deposit which is with central bank
6. Crowd funding	6) Restriction on Banking Company on commission, brokerage, discount.
7. Cash reserve ratio	7) Loss of portfolio for MFIs
8. Section 13 in The Banking Regulation Act, 1949	8) Founded on 2 April, 1990
9. PAR	9) Investment in machinery not exceeding Rs.25 lakhs
10. SIDBI	10) To reduce poverty by promoting self employment

Ans:

Column A	Column B
1. One of the issues in rural area	3) No continuous supply of electricity
2. Ministry of rural development	1) Accelerating the socio-economic -development of rural India
3.Rastriya Mahil Kosh	8) Founded on 2 April, 1990
4. Mission of NRLM	10) To reduce poverty by promoting self employment
5. Micro enterprise	9) Investment in machinery not exceeding Rs.25 lakhs
6. Crowd funding	4) Democratized funding
7. Cash reserve ratio	5) Part of bank's deposit which is with central bank
8. Section 13 in The Banking Regulation Act, 1949	6) Restriction on Banking Company on commission, brokerage, discount.
9. PAR	7) Loss of portfolio for MFIs
10. SIDBI	2) Refinances microfinance activities of NGOS

Q.1.a. State whether the following statements are true or False: (Any 8)        (8)

1. Micro finance institutions would like to provide financial services to high income clients.

Ans: False

2. Compliance risk may include fire, natural disasters such as floods, draughts, earthquake. tsunami, epidemic etc.

Ans: False

3. Market risk is the risk that an MFI cannot meet its obligations on a timely basis. 

Ans: False

4. Rebate on bills discounted of last year will be transferred to profit & loss account.

Ans: True

5. The opening balance of Rebate on bills discounted is debit balance.

Ans: False

6. Ceiling on the loan under the Credit Linked Capital Subsidy scheme is Rs.100 crore.

Ans: False

7. IIE stands for Indian Institute of environment.

Ans: False

8. The predominant proportion of MFIs is linked to the international financial market; rather they do not form part of their local financial system.

Ans: False

9. Microfinance in India started in the 1990s.

Ans: True

10. The two third population of Indians live in Urban areas.

Ans: False

Q.1.b. Match the following (any 7):            (7)

Column A	Column B
1. Internal working group	1) Improve the well-being and self- sustainability of rural people
2. PAR	2) To bridge the credit gaps in existing rural areas
3.Cash Reserve Ratio	3) Kerala
4. Schedule 06	4) Promotes business of the banks
5. Equity Finance	5) 1993
6. IIE	6) Ownership of business
7. Business Facilitator	7) Cash with RBI
8. Kudumbasree	8) Maintained in the form of liquid cash
9. Objective of RRBs	9) Loss of portfolio for MFIs
10. Rural Development	10) 2014

Ans:

Column A	Column B
1. Internal working group	10) 2014
2. PAR	9) Loss of portfolio for MFIs
3.Cash Reserve Ratio	7) Cash with RBI
4. Schedule 06	8) Maintained in the form of liquid cash
5. Equity Finance	6) Ownership of business
6. IIE	5) 1993
7. Business Facilitator	4) Promotes business of the banks
8. Kudumbasree	3) Kerala
9. Objective of RRBs	2) To bridge the credit gaps in existing rural areas
10. Rural Development	1) Improve the well-being and self- sustainability of rural people