Tag: private sector anddifference between public and private sector

Questions Related to private sector anddifference between public and private sector

Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.

  1. True

  2. False


Correct Option: A
Explanation:

An increase in cash reserve ratio reduces the excess reserves of commercial banks and limits their credit creating power

Prior to nationalization, there was a concentration of banks in urban areas.

  1. True

  2. False


Correct Option: A

Until nationalization all major banks were controlled by one or more business houses.

  1. True

  2. False


Correct Option: A

Prior to nationalization of banks in 1969 banks did not lend according to social needs.

  1. True

  2. False


Correct Option: A

Agriculture accounted for ___ % of advances of banks just before nationalization.

  1. 2.2%

  2. 4.4%

  3. 6.6%

  4. 8.8%


Correct Option: A

Apart from neglecting agricultural sector, commercial banks prior to nationalization neglected export and small scale industries.

  1. True

  2. False


Correct Option: A

Which of the following is Apex Bank for agricultural credit in India?

  1. RBI

  2. SIDBI

  3. ICICI

  4. NABARD


Correct Option: D