CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

Students should practice CA Foundation BCK Chapter 5 MCQ with Answers Organizations Facilitating Business – CA Foundation BCK MCQ Questions based on the latest syllabus.

BCK CA Foundation Chapter 5 MCQ Questions – Organizations Facilitating Business

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

Introduction:

1. Which, one of the following is a “Point of Contact” Business facilitator?
(a) Freight Forwarder
(b) Business Incubator
(c) Financial Consultant.
(d) All of the above
Answer:
(b) Business Incubator

2. _________ helps create and grow young business by providing them with necessary support and financial and technical services.
(a) Business facilitator
(b) Business Incubator
(c) Business Consultant
(d) Business merchandiser
Answer:
(b) Business Incubator

3. Business facilitator is/are those:
(a) Who helps the business
(b) Who advises the business on various sources of finance domestic as well as foreign
(c) Who create and grow young business
(d) All of these.
Answer:
(d) All of these.

4. In ________, the Union Government enacted the Industries Develop-ment and Regulation Act.
(a) 1947
(b) 1948
(c) 1950
(d) 1951
Answer:
(d) 1951

5. The detailed organisation and implementation of a Complex operation is called as _________.
(a) Logistics support
(b) Organisation
(c) Incubator
(d) Merchandiser
Answer:
(a) Logistics support

6. The _________ is regarded as the watershed development in business facilitation in India.
(a) Economy Policy of 1951
(b) Economic Policy of 1956
(c) Economic Policy of 1991
(d) Economic Policy of 2015
Answer:
(c) Economic Policy of 1991

7. _________ is the rule setter for fair play in business provides the business facilitation.
(a) RBI
(b) SEBI
(c) Competition Commission of India
(d) Ministry of Law
Answer:
(c) Competition Commission of India

8. Which one of the following is the industry specific business facilitator?
(a) Insurance Regulatory and Development Authority
(b) Reserve Bank of India
(c) Securities & Exchange Board of India
(d) Ministry of Industry
Answer:
(a) Insurance Regulatory and Development Authority

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

9. ________ is the national level apex organisation for entrepreneurship development.
(a) EDI
(b) FDI
(c) MDI
(d) SDI
Answer:
(a) EDI

10. The Entrepreneurship Develop-ment Institute (EDI) render :
(a) Consultancy Service
(b) Service of preparing State indus-trial profiles
(c) The facility to conduct district level industrial potential surveys
(d) All of the above.
Answer:
(d) All of the above.

11. The Institute ________ aims to enhance India’s image as a sourcing partner and investment destination.
(a) India Trade Promotion Organisation
(b) Industrial Development institute
(c) Indian Institute of Foreign Trade
(d) International Development Institute
Answer:
(a) India Trade Promotion Organisation

12. Which one of the following is not a non-funding Institution?
(a) RBI
(b) SEBI
(c) TRAI
(d) IFCI
Answer:
(d) IFCI

13. SEBI, RBI & IRDA are ________.
(a) Regulatory Bodies
(b) Cluster Bodies
(c) Goal sector bodies
(d) None of these
Answer:
(a) Regulatory Bodies

14. Which one of the following is the funding institution.
(a) RBI
(b) IRDAI
(c) IFCI
(d) CCI
Answer:
(c) IFCI

15. ________ focuses on training the trainers in entrepreneurship development.
(a) NIESBUD
(b) NISBUD
(c) EDI
(d) None of the above.
Answer:
(a) NIESBUD

16. At present, in India, we have ________ Micro, Small and Medium Enterprises Development Institutes.
(a) 25
(b) 28
(c) 30
(d) 35
Answer:
(c) 30

17. Which of the following scheme has been introduced by Government for furthering and facilitating Indian Business?
(a) Made in India
(b) Make in India
(c) SEZ
(d) Jan Shakti Yojana
Answer:
(b) Make in India

18. The Central Office of the Reserve Bank was initially established in ________ but was permanently moved to ________ in 1937.
(a) Kolkata, Mumbai
(b) Mumbai, Kolkata
(c) Delhi, Mumbai
(d) Kolkata, Delhi
Answer:
(a) Kolkata, Mumbai

19. Who regulates the currency in the country?
(a) SEBI
(b) RBI
(c) Central Bank
(d) Finance Ministry
Answer:
(b) RBI

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

20. The RBI has been vested with ex-tensive power to control and supervise commercial banking system under the:
(a) Reserve Bank of India Act, 1934
(b) The Banking Regulation Act, 1949
(c) Both (a) and (b)
(d) None of the above.
Answer:
(c) Both (a) and (b)

21. Which of the following is not a function of RBI?
(a) Fiscal Policy
(b) Controller of Credit
(c) Monetary Policy
(d) Custodian of Foreign Exchange Reserves.
Answer:
(a) Fiscal Policy

22. The RBI has been vested with ex-tensive power to control and supervise commercial banking system under which Act?
(a) The Reserve Bank of India Act, 1933
(b) The Reserve Bank of India Act, 1934
(c) The Reserve Bank of India Act, 1935
(d) The Reserve Bank of India Act, 1936
Answer:
(b) The Reserve Bank of India Act, 1934

23. Which institution includes money market and forex market.
(a) SEBI
(b) IFCI
(c) SIDBI
(d) RBI
Answer:
(b) IFCI

24. The Reserve Bank’s affairs are governed by ________.
(a) Central Board of Directors
(b) RBI Governor
(c) Finance Minister
(d) Committee of Ministers.
Answer:
(a) Central Board of Directors

25. The RBI ________ Treasury Bills on behalf of in ________ order to wipe away excess liquidity in the economy.
(a) Sells, Central Govt.
(b) Purchases, Central Govt.
(c) Sells, Ministry of Corporate Af-fairs
(d) Purchases, Finance Ministry.
Answer:
(a) Sells, Central Govt.

26. Which of the following statements about RBI is incorrect?
(a) It deals largely with Governments, Central and State Banks.
(b) Its role is to ensure monetary stability, including stability of domestic price levels.
(c) One of its missions is to protect the interest of policyholders.
(d) The RBI is the sole authority for the issue of currency in India.
Answer:
(c) One of its missions is to protect the interest of policyholders.

27. Which of the following can be the expiry period of Treasury Bills?
(a) 91 Days
(b) 182 Days
(c) 364 Days
(d) Any of above
Answer:
(d) Any of above

28. ________ represents the ratio of liquid assets of the banks to their deposit liabilities.
(a) SLR
(b) CRR
(c) CLR
(d) None
Answer:
(a) SLR

29. Who is the custodian of the nation’s foreign exchange reserves?
(a) Central Government of India
(b) President of India
(c) Reserve Bank of India
(d) State Bank of India
Answer:
(c) Reserve Bank of India

30. Which of the following is not a function of RBI?
(a) Banker to the Government
(b) Banker’s Bank
(c) Controller of Credit
(d) Issue of currency of one rupee coin & notes.
Answer:
(d) Issue of currency of one rupee coin & notes.

31. Which of these is a regulatory institution?
(a) RBI
(b) SEBI
(c) IRDAI
(d) Municipal Development Agency
Answer:
(c) IRDAI

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

32. Which condition, or which is not true out of options about bank rate?
(a) It is called discount rate
(b) It is different from repo rate
(c) SEBI influences the interest rates through bank rate.
(d) Higher bank rate will translate to higher lending rates by the banks
Answer:
(c) SEBI influences the interest rates through bank rate.

33. ________ has been entrusted with the task of collection and compila-tion of statistical information relating to banking and other financial Sectors of the economy.
(a) RBI
(b) Indian Statistical Institute
(c) Central Research Organisation
(d) Banking Data Record Organisation.
Answer:
(a) RBI

34. The Reserve Bank of India being the Central Bank of India performs all the central banking functions. Which one of the following is not the Tunctions of RBI?
(a) Issue of currency
(b) Banker to the Government
(c) Watchdog of the unethical competition in the market
(d) Custodian of the nation’s foreign exchange reserves
Answer:
(c) Watchdog of the unethical competition in the market

35. One percent is equivalent to ________ basis points.
(a) 01
(b) 10
(c) 50
(d) 100
Answer:
(d) 100

36. If the current bank rate is 6.25% and RBI decreases it by 20 basis point, then new rate will be:
(a) 6.0596
(b) 6.4596
(c) 6.2396
(d) 4.2596
Answer:
(a) 6.0596

37. RBI provides loans to the banks either by direct lending or by redis-counting the bills of commercial banks and treasury bills. It is known as:
(a) Bank Rate
(b) Rate of Interest
(c) Discount Rate
(d) Lending Rate
Answer:
(c) Discount Rate

38. The rate at which Bank borrows money from the RBI against pledging or Sale of Government Securities to RBI is known as:
(a) Repo Rate
(b) Reserve Repo Rate
(c) Discount Rate
(d) Bank Rate
Answer:
(a) Repo Rate

39. ________ is the rate of Interest offered by RBI, when bank deposit their surplus funds with the RBI for short periods.
(a) Repo Rate
(b) Reserve Repo Rate
(c) Discount Rate
(d) Bank Rate
Answer:
(b) Reserve Repo Rate

40. The RBI usurps the funds of RBI via stipulating:
(a) SLR and CRR
(b) Repo Rate
(c) Bank Rate
(d) None of the above
Answer:
(a) SLR and CRR

41. Which one of the following is paper based mechanism of funds transfer?
(a) Currency
(b) Cheques
(c) Bills of Exchange
(d) All of the above.
Answer:
(d) All of the above.

42. Which one of the following is not digital payment mechanism of funds transfer?
(a) Card Swiping
(b) Internet Banking
(c) Bills of Exchange
(d) All of the above.
Answer:
(c) Bills of Exchange

43. The Central Board of Directors of RBI is appointed by:
(a) Central Government
(b) Ministry of Finance
(c) Finance Minister
(d) None of the above
Answer:
(a) Central Government

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

44. Who was the regulatory body for controlling financial affairs in India before SEBI?
(a) Controller of Capital Issues
(b) Reserve Bank of India
(c) Insurance Regulatory and Development Authority of India
(d) Government of India
Answer:
(a) Controller of Capital Issues

45. The headquarters of SEBI is situated in ________.
(a) Mumbai
(b) Delhi
(c) Chennai
(d) Kolkata
Answer:
(a) Mumbai

46. The Chairman of SEBI is appointed by ________.
(a) RBI
(b) Central Government
(c) Finance Minister
(d) Prime Minister
Answer:
(b) Central Government

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

47. SEBI has its Western Regional Office in:
(a) Pune
(b) Mumbai
(c) Ahmedabad
(d) Surat
Answer:
(c) Ahmedabad

48. The first appeal of Securities Ex-change Board of India.
(a) RBI
(b) Supreme Court
(c) High Court
(d) Securities Appellate Tribunal
Answer:
(d) Securities Appellate Tribunal

49. SEBI has several functions rolled into one body. Which one of the fol-lowing is not the function of SEBI?
(a) Quasi-legislative
(b) Quasi-judicial
(c) Quasi-professional
(d) Quasi-executive
Answer:
(c) Quasi-professional

50. SEBI Function Consists of:
(a) Quasi Legislative
(b) Quasi Judicial
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

51. How many members of SEBI Board are nominated by RBI?
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(a) One

52. In April 1988, the SEBI was con-stituted as the Regulator of Capital Markets in India under:
(a) A resolution of the Govt, of India
(b) A resolution of RBI
(c) Recommendations of Group of Ministers
(d) Recommendations of Finance Minister.
Answer:
(a) A resolution of the Govt, of India

53. For the discharge of its functions efficiently, SEBI has been vested with the following powers:
(a) To approve by-laws of stock ex-changes.
(b) To inspect the books of account and call for periodical returns from recognized stock exchang-es.
(c) To compel certain companies to list their shares in one or more stock exchanges.
(d) All of the above
Answer:
(d) All of the above

54. Who was the regulatory body for controlling financial affairs before SEBI?
(a) Reserve Bank of India
(b) Controller of Capital Issues
(c) Government of India
(d) Insurance Regulatory and Development Authority of India.
Answer:
(b) Controller of Capital Issues

55. Which one of the following is the power of SEBI?
(a) Approval of By-laws of Stock Exchanges.
(b) Inspection of books of Stock exchanges.
(c) Inspection of books of account
(d) All of the above
Answer:
(d) All of the above

56. SEBI has to be responsive to the needs of groups, which constitute the market:
(a) The issuers of securities
(b) The investors
(c) The market intermediaries
(d) All of the above
Answer:
(d) All of the above

57. Where can the first appeal against SEBI be made?
(a) High Court
(b) Supreme Court
(c) Securities Appellate Tribunal
(d) RBI
Answer:
(c) Securities Appellate Tribunal

58. Where can the second appeal are made against SEBI?
(a) Securities Appellate Tribunal
(b) High Court
(c) Supreme Court
(d) RBI
Answer:
(c) Supreme Court

59. The Securities Appellate Tribunal is a member Tribunal.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three

60. When was SEBI constituted?
(a) 1988
(b) 1990
(c) 1986
(d) 1989
Answer:
(a) 1988

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

61. The regional office of SEBI is not located in:
(a) Chennai
(b) Kolkata
(c) Chandigarh
(d) Ahmedabad
Answer:
(c) Chandigarh

62. SEBI has to be responsive to the needs of which group?
(a) Issuers of Securities
(b) Investors
(c) Market Intermediaries
(d) All of the above
Answer:
(d) All of the above

63. How many members of SEBI should be from RBI?
(a) 4
(b) 3
(c) 1
(d) 2
Answer:
(c) 1

64. SEBI drafts repletion in its ________ capacity whereas the rules and orders are passed in its ________ Capacity.
(a) Legislative, Judicial
(b) Legislative, Executive
(c) Judicial, Legislative
(d) Executive, Judicial
Answer:
(a) Legislative, Judicial

65. Which one of the following state-ments is incorrect?
(a) The SEBI members consist of a Chairman, who shall be appointed by Central Government.
(b) The SEBI members consist of two members from amongst the officials of the Ministry of the Central Government.
(c) The SEBI members consist of one member from amongst the official of RBI, who shall be nominated by RBI.
(d) The SEBI members consist of five other members out of which atleast four members shall be whole-time members, who shall be appointed by Central Government.
Answer:
(d) The SEBI members consist of five other members out of which atleast four members shall be whole-time members, who shall be appointed by Central Government.

66. Which of the following is a func-tion of SEBI?
(a) Fixation of Bank Rate
(b) Issue of Currency
(c) Approval of by-laws of Stock Exchange
(d) Issue of winding up order of the companies
Answer:
(c) Approval of by-laws of Stock Exchange

67. With increased competition, the producers have the following benefits except:
(a) Incentive to innovate
(b) Incentive to specialize
(c) Reduced Costs
(d) Monopoly Status
Answer:
(d) Monopoly Status

68. The Competition between Me Donald and Burger King, Coca-Cola and Pepsi, Pizza Hut and Dominos, etc. are the examples of :
(a) Direct Competition
(b) Indirect Competition
(c) Cross Competition
(d) Straight Competition
Answer:
(a) Direct Competition

69. Which one of the following is not a benefit of free and fair Competition?
(a) Increase in Efficiency
(b) Improvement in quality
(c) Encouragement of innovation
(d) Protection of Laggards.
Answer:
(d) Protection of Laggards.

70. Competition law is a tool ________.
(a) To implement and enforce Competition policy
(b) To Prevent and punish anti-competitive business practices by firms
(c) To Prevent unnecessary Government interference in the market
(d) All of the above.
Answer:
(d) All of the above.

71. The Competition Act, 2002 pro-hibits.
(a) Anti-Competitive agreements
(b) Abuse of dominant position by enterprises
(c) Irregular combinations
(d) All of the above.
Answer:
(d) All of the above.

72. Competition Commission of India is formed:
(a) To prevent practices having ad-verse effect on competition
(b) To protect the interests of con-sumers
(c) Both (a) and (b)
(d) None of these
Answer:
(d) None of these

73. Which one of the following is not the role of the Competition Commission of India?
(a) To promote practices having adverse effect on competition.
(b) To promote and sustain competition in markets.
(c) To protect the interests of consumers and,
(d) To ensure freedom of trade carried on by other participants in markets in India.
Answer:
(a) To promote practices having adverse effect on competition.

74. With the enforcement of the Com-petition Act, 2002, the ________ shall stand repealed.
(a) MRTP Act
(b) Consumer Protection Act
(c) Controller of Capital Issues Act
(d) None of the above
Answer:
(a) MRTPAct

75. Which of the following is increased about the competition Commission of India (CCI)?
(a) CCI is a body Corporate having perpetual succession and common Seal.
(b) CCI was established by the Central Government.
(c) CCI consists of Chairperson and Six members.
(d) The members of CCI are appointed by Ministry of Welfare.
Answer:
(d) The members of CCI are appointed by Ministry of Welfare.

76. What is the constitution of Com-petition Commission of India?
(a) A Chairperson and 6 members appointed by the Central Government
(b) A Chairperson and 5 members appointed by the Central Government
(c) A Chairperson and 5 members appointed by the RBI
(d) A Chairperson and 6 members appointed by the RBI
Answer:
(a) A Chairperson and 6 members appointed by the Central Government

77. The following are the objectives of the establishment of the Competition Commission except:
(a) Prevention of practices having promotion of Competition
(b) Promote and Sustain Competition in markets
(c) Protect the interests of Consumers
(d) To ensure freedom of trade carried on by other participants in markets.
Answer:
(a) Prevention of practices having promotion of Competition

78. The preamble to the Competition Act does not include:
(a) Prevent practices having adverse effect on competition
(b) To Promote and sustain competition in markets
(c) To Protect the interests of producers
(d) To ensure freedom of trade carried on by other participants in markets.
Answer:
(c) To Protect the interests of producers

CA Foundation BCK Chapter 5 MCQ with Answers – Organizations Facilitating Business

79. ________ is an autonomous apex statutory body which regulates and develops the insurance industry in India.
(a) IRDAI
(b) IRDA Act, 1999
(c) Insurance Act, 1932
(d) TRAI
Answer:
(a) IRDAI

80. Which Section of IRDAI Act, 1999 lays down the duties, powers and functions of IRDAI?
(a) Section 10
(b) Section 12
(c) Section 14
(d) Section 5
Answer:
(c) Section 14

81. When was IRDAI constituted?
(a) 1997
(b) 1998
(c) 1999
(d) 2000
Answer:
(c) 1999

82. Which of the following reflects the functioning of IRDAI as a business facilitator?
(a) It takes steps to regulate and develop the insurance industry
(b) It protects the interests of the insurance policy holders
(c) It disseminates a lot of informa-tion for the benefit of policy holders.
(d) All of the above.
Answer:
(d) All of the above.

83. IRDAI role is to provide registration certification to life insurance compa-nies and responsible for ________ of this registered certificate.
I. Renewal
II. Modification
III. Cancellation
IV. Suspension
(a) I
(b) I & II
(c) I, II and III
(d) I, II, III and IV
Answer:
(d) I, II, III and IV

84. NABARD serves as anapexfinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in ________.
(a) Rural areas
(b) Urban areas
(c) Sub-urban areas
(d) All of the above
Answer:
(a) Rural areas

85. Which of the following is a devel-opment bank?
(a) NABARD
(b) EXIMBANK
(c) SIDBI
(d) SEBI
Answer:
(a) NABARD

86. NABARD is also known for its:
(a) SHG Bank Linkage Programme
(b) AKG Bank Linkage Programme
(c) CBG Bank Linkage Programme
(d) BHG Bank Linkage Programme
Answer:
(a) SHG Bank Linkage Programme

87. SHG stands for ________.
(a) Self-Halogen groups
(b) Self- Help groups
(c) State Holding Groups
(d) Skill help groups
Answer:
(b) Self- Help groups

88. Where is the headquarter of NA-BARD?
(a) Mumbai
(b) Delhi
(c) Gurugram
(d) Bengaluru
Answer:
(a) Mumbai

89. ________ is the pilot proiect of NABARD for digitization of SHGs.
(a) E – Shanti
(b) E – Shakti
(c) E – Agriculture
(d) E -Village
Answer:
(b) E – Shakti

90. NABARD has a portfolio of Natural Resource Management Programmes involving:
(a) Watershed Development
(b) Tribal Development
(c) Farm Innovation
(d) All of the above
Answer:
(d) All of the above

91. NABARD is the most important institution in the country which looks after the development of the:
(a) Cottage Industry
(b) Small Industry
(c) Village Industry
(d) All of the above.
Answer:
(d) All of the above.

92. NABARD refinances the financial institutions which finances the:
(a) Urban sector
(b) Rural sector
(c) Secondary sector
(d) Service sector
Answer:
(b) Rural sector

93. RRB Stands for ________.
(a) Rural Regional Banks
(b) Regional Rural Banks
(c) Reserve Regional Banks
(d) Rural Regression Banks.
Answer:
(b) Regional Rural Banks

94. NABARD looks after the develop-ment of the ________.
(a) Cottage Industry
(b) Small and village Industries
(c) Rural Industries
(d) All of the above
Answer:
(d) All of the above

95. Large number of SHGs have been linked to credit, resulting in an impor-tant Indian tool for microfinance, by the endeavour of:
(a) NABARD
(b) SIDBI
(c) IDBI
(d) SEBI
Answer:
(a) NABARD

96. Which of the following role is not discharged by NABARD?
(a) Monitoring and evaluation of projects financed by it.
(b) Refinancing the financial insti-tutions which finance the rural sector.
(c) Regulates the institutions which provide financial help to the rural economy
(d) Establishment of small organisa-tions for Agro-Sector.
Answer:
(d) Establishment of small organisa-tions for Agro-Sector.

97. NABARD is the most important institution in the country which looks after the development of the:
(a) Cottage industry,
(b) Small industry
(c) Village industry
(d) All of the above.
Answer:
(d) All of the above.

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