UGC NET Commerce Unit 7 PYQs: Banking & Financial Institutions Previous Year Questions

UGC NET Commerce Unit 7 PYQs help candidates prepare for Banking and Financial Institutions, one of the most important sections of the UGC NET Commerce syllabus. This unit covers topics such as commercial banks, NABARD, RBI, World Bank, IMF, Basel norms, financial institutions, money market instruments, and banking reforms.

 Practising previous year questions helps students understand the exam pattern, frequently asked concepts, and important factual topics. These PYQs are useful for strengthening conceptual understanding, improving accuracy, and identifying high-weightage areas. Regular practice can significantly boost confidence and performance in the UGC NET Commerce examination. 

UGC NET Commerce Unit 7 PYQs 

Check the UGC NET Commerce Unit 7 PYQs below to revise important questions from Banking and Financial Institutions. These previous year questions help you understand frequently asked topics, improve conceptual clarity, and get familiar with the exam pattern and difficulty level for effective preparation.

Q1. Which of the following are the schemes promoted by NABARD?

 A. Kisan Credit Card (KCC)
B. Capital Investment Subsidy Scheme
C. Special Economic Zone Scheme
D. Rural Innovation Fund
E. Tribal Development Fund

Choose the correct answer from the options given below:
(A) A, B, C and D Only
(B) B, C, D and E Only
(C) A, B, D and E Only
(D) A, C, D and E Only

Answer - (C) A, B, D and E Only

Q2. New reform in India banking system include

 (a) Digitization of bank operations
(b) Banking consolidation
(c) Borrowing from Government
(d) Agency work

Choose the correct option from the following:
(A) (a) and (b)
(B) (c) and (d)
(C) (b), (d) and (c)
(D) (a), (c) and (d)

Answer:  A and B

Q3. Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R:

Assertion ‘A’: One of the most difficult product to sell is ‘life insurance’ such that one who sells life insurance can sell anything under the Sun.

Reason ‘R’: What is sought to be marketed in life insurance is an assurance whereby payment of money is assured upon death or the happening of any contingency depended upon human life.

In light of the above statements, choose the correct answer from the options given below:

(A) Both A and R are true and R is the correct explanation of A.
(B) Both A and R are true but R is NOT the correct explanation of A.
(C) A is true but R is false.
(D) A is false but R is true.

Answer: A

Q4. The banks in which a majority of depositors are non-residents are known as:

Options:
A. Cross Payment Banks
B. Currency Banks
C. Foreign Banks
D. Offshore Banks

Answer: D. Offshore Banks

Q5. Fourteen-day Intermediate Treasury Bills were introduced in 1996–97 after abolishing which of the following Treasury Bills?

Options:
A. 91 Days Treasury Bills
B. 182 Days Treasury Bills
C. 273 Days Treasury Bills
D. 364 Days Treasury Bills

Answer: B. 182 Days Treasury Bills

Q6. Which among the following institutions is NOT a part of the World Bank Group?

Options:
A. International Development Association (IDA)
B. International Monetary Fund (IMF)
C. International Finance Corporation (IFC)
D. Multilateral Investment Guarantee Agency (MIGA)

Answer: B. IMF

Q7. Match List I with List II.

Choose the correct option from those given below:

(A) (a)-(i); (b)-(ii); (c)-(iv); (d)-(iii)
(B) (a)-(iii); (b)-(i); (c)-(ii); (d)-(iv)
(C) (a)-(i); (b)-(iii); (c)-(iv); (d)-(ii)
(D) (a)-(iv); (b)-(iii); (c)-(ii); (d)-(i)

Answer:
 (a)-(iii); (b)-(i); (c)-(ii); (d)-(iv)

Correct Option: B

Q8. Which of the following financial institutions got merged with their subsidiaries?

1. UTI

2. IFCI

3. ICICI Bank

4. IDBI

5. Global Trust Bank

Options:
A. 1 and 2 only
B. 2 and 3 only
C. 3 and 4 only
D. 4 and 5 only

Answer: C. 3 and 4 only

Q9. Statement (I): Developing countries can borrow more than their quota under Extended Fund Facility (EFF) of IMF.

Statement (II): The Extended Fund Facility (EFF) was created in 1984 to help developing countries over longer period upto 3 years.

In light of the above statements, choose the correct answer from the options given below:

(A) Statement (I) is correct but (II) is not correct.
(B) Statement (II) is correct but (I) is not correct.
(C) Both the statements (I) and (II) are correct.
(D) Both the statements (I) and (II) are not correct.

Answer: A

Q10. Which of the following subsidiaries are fully owned by the Reserve Bank of India?

A. National Housing Bank
B. National Bank for Agriculture and Rural Development
C. The Deposit Insurance and Credit Guarantee Corporation of India
D. Bharatiya Reserve Bank Note Mudran Private Limited
E. Securities Trading Corporation of India

Choose the correct answer from the options given below:

(A) A, C and D Only
(B) A, D and E Only
(C) B, D and E Only
(D) B, C and D Only

Benefits of Practising UGC NET Commerce Unit 7 PYQs 

Practising UGC NET Commerce Unit 7 Previous Year Questions (PYQs) is one of the best ways to prepare for the Banking and Financial Institutions section. This unit includes important topics such as RBI, NABARD, IMF, World Bank, Basel Norms, money market instruments, and banking reforms. 

Solving PYQs helps candidates identify important concepts, improve accuracy, and gain confidence for the exam.

1. Understand the Exam Pattern: PYQs help candidates become familiar with the types of questions, topic distribution, and difficulty level commonly seen in Unit 7.

2. Identify Frequently Asked Topics: Many questions are repeatedly asked from banking reforms, financial institutions, NABARD, RBI functions, and international financial organizations.

3. Improve Conceptual Understanding: Previous year questions help students strengthen their understanding of banking operations, money market instruments, and financial systems.

4. Enhance Speed and Accuracy: Regular practice improves problem-solving speed and reduces mistakes during the actual examination.

5. Focus on High-Weightage Areas: PYQs help candidates identify the most important topics and prioritize their preparation accordingly.

6. Boost Confidence Before the Exam: Solving actual exam questions familiarizes students with the question format and builds confidence for the UGC NET Commerce exam.