Q.1 Which of the following is a development bank in India?
ICICI Bank
SIDBI
HDFC Bank
Axis Bank
Explanation - SIDBI (Small Industries Development Bank of India) is a development bank focused on financing and supporting MSMEs.
Correct answer is: SIDBI
Q.2 What is the primary role of a development bank?
Accept deposits from public
Provide long-term finance for development projects
Offer insurance products
Provide forex services
Explanation - Development banks provide long-term finance and support to industries and sectors that promote economic growth.
Correct answer is: Provide long-term finance for development projects
Q.3 Which institution is known as the 'Bankers’ Bank' in India?
RBI
IDBI
NABARD
EXIM Bank
Explanation - Reserve Bank of India acts as the central bank and is often referred to as the 'Bankers’ Bank' as it regulates and supports other banks.
Correct answer is: RBI
Q.4 EXIM Bank in India primarily deals with:
Foreign trade finance
Agricultural loans
Microfinance
Housing finance
Explanation - EXIM Bank (Export-Import Bank of India) provides financial support and services to promote India's international trade.
Correct answer is: Foreign trade finance
Q.5 NABARD was established in which year?
1982
1972
1990
1969
Explanation - National Bank for Agriculture and Rural Development (NABARD) was established in 1982 to finance and support rural development.
Correct answer is: 1982
Q.6 Which of the following is NOT a function of development banks?
Providing short-term loans to individuals
Financing industrial projects
Promoting entrepreneurship
Supporting infrastructure development
Explanation - Development banks mainly focus on long-term finance for development projects, not on short-term loans for individuals.
Correct answer is: Providing short-term loans to individuals
Q.7 IDBI was originally set up as:
A commercial bank
A development financial institution
A cooperative bank
An insurance company
Explanation - Industrial Development Bank of India (IDBI) was established as a development financial institution to provide credit and support industrial growth.
Correct answer is: A development financial institution
Q.8 Which development bank primarily supports MSMEs in India?
SIDBI
EXIM Bank
NABARD
RBI
Explanation - SIDBI (Small Industries Development Bank of India) is specifically focused on financing and supporting Micro, Small and Medium Enterprises (MSMEs).
Correct answer is: SIDBI
Q.9 Which of the following is an international financial institution?
World Bank
SIDBI
EXIM Bank
NABARD
Explanation - The World Bank is an international financial institution providing financial and technical assistance to developing countries.
Correct answer is: World Bank
Q.10 The main objective of NABARD is:
Urban infrastructure development
Agricultural and rural development
Industrial exports
Corporate banking services
Explanation - NABARD aims to provide credit, development, and support for agriculture and rural development in India.
Correct answer is: Agricultural and rural development
Q.11 EXIM Bank of India is under the jurisdiction of:
Ministry of Finance
Ministry of Commerce and Industry
RBI
NABARD
Explanation - EXIM Bank is a government-owned financial institution under the Ministry of Finance, providing export-import credit.
Correct answer is: Ministry of Finance
Q.12 Which of the following institutions provides refinance support to rural banks in India?
NABARD
SIDBI
EXIM Bank
ICICI Bank
Explanation - NABARD provides refinance support and credit facilities to cooperative banks, RRBs, and other financial institutions working in rural areas.
Correct answer is: NABARD
Q.13 Which bank was merged with IDBI in 2004?
ICICI Bank
UCO Bank
Commercial Bank of India
Industrial Credit and Investment Corporation of India (ICICI)
Explanation - IDBI merged with ICICI’s banking operations in 2004 to form IDBI Bank.
Correct answer is: Industrial Credit and Investment Corporation of India (ICICI)
Q.14 Which development bank focuses on export credit?
EXIM Bank
NABARD
SIDBI
IDBI
Explanation - EXIM Bank specializes in financing and supporting exports and international trade.
Correct answer is: EXIM Bank
Q.15 Which of the following is a state-level financial institution in India?
State Financial Corporation (SFC)
EXIM Bank
SIDBI
NABARD
Explanation - State Financial Corporations (SFCs) are set up by state governments to provide financial assistance to small and medium enterprises.
Correct answer is: State Financial Corporation (SFC)
Q.16 Which bank is specifically set up to promote cooperative banking in India?
NABARD
SIDBI
EXIM Bank
ICICI Bank
Explanation - NABARD supports cooperative banks and rural credit institutions to strengthen agriculture and rural development.
Correct answer is: NABARD
Q.17 Which development bank was established under the NABARD Act, 1981?
NABARD
EXIM Bank
SIDBI
IDBI
Explanation - NABARD was established in 1982 under the NABARD Act, 1981, to focus on agriculture and rural development financing.
Correct answer is: NABARD
Q.18 Which institution is the apex financial institution for agriculture and rural development in India?
NABARD
EXIM Bank
SIDBI
IDBI
Explanation - NABARD serves as the apex financial institution to coordinate and support rural and agricultural development programs.
Correct answer is: NABARD
Q.19 Which of the following banks provides venture capital for industrial development?
SIDBI
NABARD
EXIM Bank
RBI
Explanation - SIDBI provides venture capital support for industries, particularly MSMEs, to encourage entrepreneurship and industrial growth.
Correct answer is: SIDBI
Q.20 Which development bank is known for supporting infrastructure financing in India?
IDBI
EXIM Bank
SIDBI
NABARD
Explanation - IDBI Bank primarily provides long-term finance and support for industrial and infrastructure development projects.
Correct answer is: IDBI
Q.21 The main source of funds for development banks in India is:
Public deposits
Government funds and borrowings
Corporate investments
Forex reserves
Explanation - Development banks primarily rely on government funding, borrowings from financial markets, and international institutions for their operations.
Correct answer is: Government funds and borrowings
Q.22 Which of the following is NOT a development financial institution in India?
LIC
SIDBI
NABARD
IDBI
Explanation - LIC (Life Insurance Corporation) is an insurance company, not a development financial institution.
Correct answer is: LIC
Q.23 Which institution primarily deals with export-import credit?
EXIM Bank
SIDBI
NABARD
RBI
Explanation - EXIM Bank provides credit, guarantees, and advisory services to facilitate India's foreign trade.
Correct answer is: EXIM Bank
Q.24 Which bank is the principal refinancing agency for cooperative credit institutions in India?
NABARD
SIDBI
EXIM Bank
ICICI Bank
Explanation - NABARD provides refinance facilities to cooperative banks and regional rural banks, ensuring smooth rural credit flow.
Correct answer is: NABARD
Q.25 Which development bank focuses on supporting small-scale and cottage industries?
SIDBI
IDBI
EXIM Bank
NABARD
Explanation - SIDBI primarily promotes, finances, and develops Micro, Small and Medium Enterprises (MSMEs), including cottage industries.
Correct answer is: SIDBI