Banking Awareness Quiz – Set 61

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Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. _________ is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
   A. Micro enterprise
   B. Medium enterprise
   C. Small enterprise
   D. None of the Above
   
   Answer & Explanation

   A. Micro enterprise
   Explanation:
   Enterprises engaged in the manufacture or production, processing or preservation of goods in where the investment in plant and machinery does not exceed Rs. 25 lakh is defined as Micro enterprise.
   
   
2. What is the maximum limit of investment in plant and machinery by a small enterprise as per the MSMED Act 2006?
   A. 5 crore
   B. 10 crore
   C. 15 crore
   D. 20 crore
   
   Answer & Explanation

   A. 5 crore
   Explanation:
   In small enterprises the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore as per the Micro Small and Medium Enterprises Development (MSMED) Act, 2006.
   
   
3. An enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore is termed as _________
   A. Micro enterprise
   B. Medium enterprise
   C. Small enterprise
   D. None of the Above
   
   Answer & Explanation

   B. Medium enterprise
   Explanation:
   In medium enterprises the minimum limit of investment in plant and machinery is Rs.5 crore and the maximum limit is Rs.10 crore.
   
   
4. What is the maximum limit of investment in equipment by a micro enterprise as per the MSMED Act 2006?
   A. 5 lakh
   B. 10 lakh
   C. 15 lakh
   D. 20 lakh
   
   Answer & Explanation

   B. 10 lakh
   Explanation:
   In micro enterprises the investment in equipment does not exceed Rs. 10 lakh.
   
   
5. What is the range of investment in equipment by a small enterprise as per the MSMED Act 2006?
   A. 5 lakh – 1 crore
   B. 10 lakh – 2 crore
   C. 15 lakh – 3 crore
   D. 20 lakh – 4 crore
   
   Answer & Explanation

   B. 10 lakh – 2 crore
   Explanation:
   In small enterprises, the investment in equipment lies between Rs.10 lakh and Rs.2 crore.
   
   
6. According to MSMED Act, 2006 an enterprise where the investment in equipment lies between Rs.2 crore and Rs.5 crore is termed as _________
   A. Micro enterprise
   B. Medium enterprise
   C. Small enterprise
   D. None of the Above
   
   Answer & Explanation

   B. Medium enterprise
   Explanation:
   Medium enterprise – An enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
   
   
7. MUDRA stands for __________
   A. Micro Units Development and Refinance Agency Bank
   B. Micro Units Development and Refinance Authority Bank
   C. Medium Units Development and Refinance Agency Bank
   D. Medium Units Development and Refinance Authority Bank
   
   Answer & Explanation

   A. Micro Units Development and Refinance Agency Bank
   Explanation:
   Micro Units Development and Refinance Agency Bank (or MUDRA Bank) is a public sector financial institution in India.
   It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs.
   It was launched by Prime Minister Narendra Modi in New Delhi.
   
   
8. Who among the following is/are eligible to borrow from MUDRA Bank?
   A. Small manufacturing unit
   B. Artisans
   C. Fruit and vegetable vendors
   D. All of the Above
   
   Answer & Explanation

   D. All of the Above
   Explanation:
   Eligible persons to borrow from MUDRA bank are as follows
   ♦ Small manufacturing unit
   ♦ Shopkeepers
   ♦ Fruit and vegetable vendors
   ♦ Artisans
   
   
9. Government has decided to provide an additional fund of ________ which will be allocated to Shishu, Kishore and Tarun schemes.
   A. Rs 1 trillion
   B. Rs 1 million
   C. Rs 1 billion
   D. Rs 10 billion
   
   Answer & Explanation

   A. Rs 1 trillion
   Explanation:
   Government has decided to provide an additional fund of Rs 1 trillion to the market and will be allocated as
   ♦ 40% to Shishu.
   ♦ 35% to Kishore.
   ♦ 25% to Tarun.
   
   
10. MUDRA Bank will deliver loan through _________
    A. NBFCs
    B. MFIs
    C. Rural Banks
    D. All of the Above
    
    Answer & Explanation

    D. All of the Above
    Explanation:
    MUDRA will deliver the loan through NBFCs, MFIs, Rural Banks, District Banks, Nationalize Banks, Private Banks, Primary Lending Institutions and other intermediaries.