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Financial institutions MCQ - Practice Questions with Answers

Solve 1 Financial institutions questions for RAS/RPSC preparation.

Practice questions

Q1Choose the correct combination from below:

A IDBI - Short-term loans
B RBI - Long-term loans
C SBI - Monetary policy
D RRB - Agricultural finance
Explanation

Regional Rural Banks are closely associated with rural credit and agricultural finance, so the RRB-agricultural finance pairing is correct. IDBI historically focused on industrial development finance, not mainly short-term loans. RBI is India’s central bank and frames monetary policy; it is not identified with providing long-term loans as the pairing states. SBI is a commercial bank, while monetary policy is the responsibility of RBI. Thus only the Regional Rural Bank pairing matches the institution’s core role.

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