UPSC 2020 › Indian Economy › Banking & Financial Sector

2 questions · 2020 · answers as per the UPSC key

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UPSC 2020 · Q59 · Indian Economy › Banking & Financial Sector · Save

Consider the following statements :

  1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
  2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (b) 2 only
UPSC 2020 · Q62 · Indian Economy › Banking & Financial Sector · Save

What is the importance of the term “Interest Coverage Ratio” of a firm in India ?

  1. It helps in understanding the present risk of a firm that a bank is going to give loan to.
  2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
  3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the correct answer using the code given below :

(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (a) 1 and 2 only