Financial Organisations MCQ Quiz - Objective Question with Answer for Financial Organisations - Download Free PDF

The correct answer is Paris.

• The headquarters of OECD is located in Paris, France.

Key Points

• The organization for economic cooperation and development (OECD) is an international organization of 38 countries that accept the principles of representative democracy and a free-market economy.
• OECD originated in 1948 as the organization for European Economic Cooperation (OEEC) to help administer the Marshall Plan for the reconstruction of Europe after World War II.
• OECD took over from OEEC in 1961. Since then, its mission has been to help its member countries to achieve sustainable economic growth and employment.
• There are 38 member countries of the OECD, 20 being the founding members and 18 were admitted later.
• Founding members in 1961 were Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, UK, and the USA.

Additional Information

The correct answer is K V Kamath.

Key Points

• K V Kamath was the first President of the New Development Bank (NDB), appointed in July 2015.
• The New Development Bank was established by the BRICS countries (Brazil, Russia, India, China, and South Africa) with the purpose of funding infrastructure and sustainable development projects.
• K V Kamath served as the President of the NDB from its inception until May 2020.
• He is a renowned Indian banker, known for his leadership at ICICI Bank, where he significantly contributed to the growth of India's banking sector.
• The headquarters of the New Development Bank is located in Shanghai, China.

Additional Information

• New Development Bank (NDB):
  • It was formally launched during the 6th BRICS Summit held in Fortaleza, Brazil, in July 2014.
  • The primary objective of the bank is to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies.
  • The NDB aims to complement the efforts of existing multilateral financial institutions like the World Bank and IMF.
• K V Kamath's Contributions:
  • Before joining NDB, K V Kamath was the Managing Director and CEO of ICICI Bank, transforming it into one of India’s largest private-sector banks.
  • He has received several prestigious awards, including the Padma Bhushan in 2008, for his contributions to trade and industry.
• BRICS:
  • BRICS is an acronym for an association of five emerging economies: Brazil, Russia, India, China, and South Africa.
  • It was formally established in 2006, with the first summit held in 2009.
  • BRICS nations account for around 40% of the world’s population and over 25% of global GDP.
• Current Leadership of NDB:
  • As of 2023, Dilma Rousseff, the former President of Brazil, serves as the President of the NDB.
  • The leadership transition reflects the rotational nature of the presidency among BRICS member states.

The correct answer is 1992.

Key Points

• The Securities and Exchange Board of India (SEBI) was established in 1992 as a statutory regulatory body under the SEBI Act, 1992.
• It was created to protect the interests of investors in securities and promote the development and regulation of the securities market in India.
• SEBI's headquarters is located in Mumbai, Maharashtra, with regional offices in New Delhi, Chennai, Kolkata, and Ahmedabad.
• The regulator oversees activities related to the stock market, mutual funds, brokers, sub-brokers, and other intermediaries involved in the securities market.
• The establishment of SEBI marked a significant milestone in strengthening market transparency and curbing unethical practices in the Indian financial sector.

Additional Information

• SEBI Act, 1992:
  • The SEBI Act, 1992, grants SEBI the authority to regulate and develop India's securities market.
  • It empowers SEBI to investigate, impose penalties, and take legal action against entities violating market regulations.
  • The Act also provides SEBI with the power to draft regulations for market participants and intermediaries.
• Functions of SEBI:
  • Protecting investor interests through transparency and disclosures.
  • Regulating stock exchanges, brokers, and other intermediaries.
  • Promoting the development of the securities market and ensuring its orderly functioning.
  • Prohibiting fraudulent and unfair trade practices in the market.
• Key Regulations Introduced by SEBI:
  • Takeover Code (1994) – Regulating mergers and acquisitions of listed companies.
  • Insider Trading Regulations (1992, revised later) – Preventing misuse of confidential information.
  • Mutual Fund Regulations – Ensuring transparency in mutual fund operations.
• Role in Investor Education:
  • SEBI actively conducts workshops and campaigns to educate retail investors.
  • It provides resources like investor guides and complaint redressal systems to ensure informed investment decisions.

• National Securities Depositories Limited(NSDL) and Central Depositories Services Limited(CDSL) are the two depositories registered with SEBI.

The correct answer is Securities Exchange Board of India (SEBI).

Key Points

• SEBI stands for the Securities Exchange Board of India.
• It was established on April 12, 1988, and given statutory powers on January 30, 1992, through the SEBI Act, 1992.
• SEBI's primary role is to regulate the securities market in India and protect the interests of investors in securities.
• The regulatory body has the authority to oversee, regulate, and develop the Indian securities market by enforcing rules and regulations.

Additional Information

• National Development Council (NDC)
  • The National Development Council is the apex body responsible for approving the planning and development policies and strategies in India.
  • It was established on August 6, 1952.
  • The NDC aims to strengthen and mobilize the efforts and resources of the nation for plan development.
  • It includes the Prime Minister, Chief Ministers of all states, and members of the Planning Commission.
• Joint Stock Company
  • A Joint Stock Company is a business entity where shares of the company's stock can be bought and sold by shareholders.
  • Each shareholder owns company stock in proportion to their shares.
  • It can be a public or private company.
  • Examples include companies listed on stock exchanges.
• Steel Authority of India Ltd. (SAIL)
  • SAIL is one of the largest steel-making companies in India.
  • It was founded in 1954 and operates under the Ministry of Steel, Government of India.
  • SAIL produces iron and steel at five integrated plants and three special steel plants.
  • It is not a regulatory body but a public sector enterprise.
• Securities Exchange Board of India (SEBI)
  • SEBI was established to regulate the securities market in India.
  • It ensures that the securities market operates in an orderly manner.
  • SEBI protects the interests of investors by enforcing regulations.
  • It also promotes and regulates the development of the securities market in India.

Option 4 is correct, i.e. Axis bank.

• The name of UTI Bank was changed to Axis bank ltd on 30^th July 2007.
• It was the third-largest private sector lender bank in India at that time.
• The change in name was considered for avoiding confusion between the other UTI brand, so executive director R Ashok Kumar gave this statement in 2007.
• The UTI bank is owned by a UTI Management company.
• UTI stands for Unit Trust of India.

• The headquarters of the World Bank is in the United States of America (USA).
• Its headquarters is in Washington D.C. USA.
• It has a total membership of 189 countries.
• Along with the International Monetary Fund (IMF), the World Bank was established in the year 1945.
•  IMF also has its headquarters in Washington D.C.

NABARD(National Bank for Agriculture and Rural Development) was established in 1982.

• It is an Apex Financial Institution for Growth in India.
• It was formed to enforce the National Bank for Agriculture and Rural Development Act 1981 on 12 July 1982 on the recommendations of the B.Sivaramman Committee, (by Parliament Act 61, 1981).
• It is the India's Agriculture and Rural Development Specialized Bank.
• The headquarters is situated in Mumbai.

The correct answer is 1927.

Key Points

• The Federation of Indian Chambers of Commerce and Industry (FICCI) is a non-profit trade organization and lobbying organization located in India.
• In 1927, Indian businessmen Mr. G D Birla and Purshottamdas Thakurdas launched the company on Mahatma Gandhi's recommendation.
• It is India's largest, most influential, and oldest commercial organization.
• It is a non-governmental, non-profit organization. Members of FICCI come from the private and public sectors, as well as SMEs and multinational enterprises.
• The chamber has around 250,000 indirect members through a variety of regional chambers of commerce.
• It focuses on firm development, advertising, and networking in a given industry.

Important Points

• It is based in New Delhi, India's capital, and operates in 12 states and eight countries worldwide.
• India's only national ATA Carnet issuing and assuring organization is the FICCI.
• ATA Carnets are used to carry temporary equipment across borders by TV/film crews, journalists, engineers, musicians, and industry.

The correct answer is SEBI

• SEBI stands for the Securities and Exchange Board of India.
  • It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.
  • Its main work is to regulate the capital market.
• RBI stands for the Reserve Bank of India. It was established in 1935.
  •  The present governor of RBI is Shaktikanta Das.
• BSE stands for the Bombay Stock Exchange.
  • It is the first securities market in India and it was set up in 1875.
• NSE stands for National Stock Exchange.
  • It was set up in 1992 to provide a modern electronic trading system.

• The World Bank’s Board of Executive Directors has approved a fast-track $1 billion India COVID-19 Emergency Response and Health Systems Preparedness Project.
• It will help India prevent, detect, and respond to the COVID-19 pandemic and strengthen its public health preparedness.
• This is the largest ever health sector support from the Bank to India. 

Option 3 is correct, i.e. Honours Your Trust.

• Founded in 1943, UCO Bank is a commercial bank and a Government of India Undertaking. 
• Atul Kumar Goel is the MD & CEO of UCO Bank.

The correct answer is Small Industries Development Bank of India.

Key Points

• SIDBI stands for Small Industries Development Bank of India.
• Small Industries Development Bank of India (SIDBI) was set up on 2nd April 1990 under an Act of the Indian Parliament.
• It was formed in the year 1990.
• It is the apex regulatory body for the licensing and regulation of micro, small and medium enterprise finance companies in India.
• It comes under the jurisdiction of the Ministry of Finance.
• Its headquarters is located at Lucknow, Uttar Pradesh.
• SIDBI is regulated and supervised by the Reserve Bank of India.

The correct answer is 1956.

Life Insurance Corporation (LIC) of India was established in 1956.

Key Points

• The Life Insurance Corporation of India was founded when the Parliament of India passed the Life Insurance of India Act that nationalised the insurance industry in India.
• Life Insurance Corporation of India is an Indian state-owned insurance group and investment corporation owned by the Government of India.
• The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Kolkata in 1818.
• Surendranath Tagore had founded Hindusthan Insurance Society, which later became Life Insurance Corporation.
• The LIC's executive board consists of Chairman, currently M R Kumar, and Managing Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar.

The correct answer is SEBI.

Key Points

• Securities and Exchange Board of India is the regulatory authority of Mutual Funds in India.
• It has introduced several measures and policies to protect the interest of investors.
• SEBI (Mutual Funds) Regulations, 1996 have been issued to set uniform standards for mutual funds in India.
• All the mutual funds have to be registered with SEBI.
• SEBI was established on 12 April 1988 and provided statutory status on 30 January 1992 through SEBI Act 1992.
• Headquarters: Mumbai
• Chairperson: Madhabi Puri Buch