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Indian Financial System Quiz

Practice quiz on Indian Financial System (Financial Awareness). 5 real exam questions.

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About This Quiz

Practice quiz on Indian Financial System (Financial Awareness). 5 real exam questions. Indian Financial System Quiz is a free, 25-minute, 25-mark practice quiz on AajExam rated at medium difficulty, designed to help candidates preparing for SSC, UPSC, Banking, Railway and State PSC government competitive exams sharpen their command of Indian Financial System (Financial Awareness). Every question on this quiz ships with a detailed step-by-step solution so you don't just learn the right answer — you learn the reasoning and shortcuts top scorers use to crack similar questions faster on the actual exam day. Why Indian Financial System Quiz matters in your preparation: government exam-conducting bodies repeatedly draw questions from the same chapters and the same skill-clusters across recruitment cycles. By attempting focused topic-wise quizzes like this one, you build pattern recognition — the ability to spot which formula, rule or trick applies the moment you see a question. Toppers consistently report that 5-10 quizzes on a single topic delivers more exam-day score gain than 20+ unfocused full-length mocks, because targeted drilling exposes your specific sub-topic weaknesses with surgical precision. How to use this quiz effectively: attempt it in one sitting under the 25-minute timer, without referring to notes or external resources — simulate exam-day conditions exactly. After submission, review the auto-generated analytics to see your accuracy, time per question and section-wise performance. Then go through every wrong and skipped question with the explanation, mentally tagging the underlying concept rather than just memorising the answer. Revisit this quiz after 7-10 days; your second attempt should be 15-20% faster with noticeably better accuracy. After mastering this quiz, explore the 6 related quizzes linked below to broaden your topic coverage. AajExam quiz design principles: every quiz on the platform is curated by subject experts using the actual question formats, difficulty distributions and time pressures of the target government exams. We deliberately avoid generic "textbook" questions in favour of exam-replicating ones. Solutions are written in plain English (and Hindi where source material was bilingual), with step-by-step working for quantitative problems, grammar rules for English questions, and direct reference statements for general awareness items. Performance analytics after each attempt include accuracy, attempt rate, time spent per question, and an estimated all-India percentile so you know exactly where you stand against other candidates. This quiz is completely free to attempt. You only need a free AajExam account to track your performance across attempts, view detailed solutions and unlock the platform-wide analytics dashboard. The platform is mobile-friendly and works seamlessly on smartphones, tablets and desktops — so you can sharpen your Indian Financial System (Financial Awareness) skills in any spare 15-minute window.

Indian Financial System Quiz — Questions with Solutions

All 25 questions from this quiz with the correct answer and explanation. Attempt them yourself first, then open each solution to check your reasoning.

  1. Q1.Which organization handles India's foreign exchange reserves?

    • A.RBI
    • B.Finance Ministry
    • C.World Bank
    • D.SEBI
    Show answer

    Answer: A. RBI

    The Reserve Bank of India manages the country's forex reserves.

  2. Q2.Which was the first Indian state formed on a linguistic basis in 1953?

    • A.Maharashtra
    • B.Andhra State
    • C.Gujarat
    • D.Kerala
    Show answer

    Answer: B. Andhra State

    Andhra State was created in 1953 for Telugu-speaking people.

  3. Q3.What does the term 'NPA' stand for?

    • A.Non Performing Asset
    • B.Non Productive Asset
    • C.New Productive Area
    • D.Net Profit Analysis
    Show answer

    Answer: A. Non Performing Asset

    NPA refers to Non Performing Asset, i.e., a loan overdue for more than 90 days.

  4. Q4.Father of Indian Green Revolution:

    • A.Norman Borlaug
    • B.MS Swaminathan
    • C.Verghese Kurien
    • D.APJ Abdul Kalam
    Show answer

    Answer: B. MS Swaminathan

    MS Swaminathan.

  5. Q5.Who was the first Indian woman to climb Mount Everest?

    • A.Bachendri Pal
    • B.Santosh Yadav
    • C.Premlata Agarwal
    • D.Malavath Purna
    Show answer

    Answer: A. Bachendri Pal

    Bachendri Pal summited Mount Everest in 1984.

  6. Q6.SEBI stands for:

    • A.Securities and Exchange Board of India
    • B.State Exchange Bank of India
    • C.Securities and Economic Bureau of India
    • D.State Economic Board of India
    Show answer

    Answer: A. Securities and Exchange Board of India

    SEBI regulates India's securities markets.

  7. Q7.SEBI primarily regulates:

    • A.Insurance companies
    • B.Stock/securities markets
    • C.Pension funds
    • D.Rural banks
    Show answer

    Answer: B. Stock/securities markets

    SEBI is the regulator of India's stock markets.

  8. Q8.IRDAI is the regulatory body for which sector?

    • A.Banking
    • B.Insurance
    • C.Stock market
    • D.Mutual funds
    Show answer

    Answer: B. Insurance

    IRDAI regulates the insurance sector in India.

  9. Q9.Which is the apex regulator of the banking system in India?

    • A.SEBI
    • B.RBI
    • C.IRDAI
    • D.PFRDA
    Show answer

    Answer: B. RBI

    RBI is the central regulatory authority for banks.

  10. Q10.PFRDA regulates which of the following?

    • A.Pension funds
    • B.Insurance companies
    • C.Stock exchanges
    • D.Commercial banks
    Show answer

    Answer: A. Pension funds

    PFRDA regulates the pension sector, including NPS.

  11. Q11.NSE stands for:

    • A.National Stock Exchange
    • B.National Securities Exchange
    • C.National Savings Exchange
    • D.National Share Exchange
    Show answer

    Answer: A. National Stock Exchange

    NSE is the National Stock Exchange of India.

  12. Q12.The Bombay Stock Exchange (BSE) is located in:

    • A.Delhi
    • B.Mumbai
    • C.Kolkata
    • D.Chennai
    Show answer

    Answer: B. Mumbai

    BSE is headquartered in Mumbai.

  13. Q13.Sensex is the benchmark index of which exchange?

    • A.NSE
    • B.BSE
    • C.MCX
    • D.NCDEX
    Show answer

    Answer: B. BSE

    Sensex is BSE's flagship index.

  14. Q14.Nifty 50 is the benchmark index associated with:

    • A.BSE
    • B.NSE
    • C.MCX
    • D.RBI
    Show answer

    Answer: B. NSE

    Nifty 50 is the NSE's flagship index.

  15. Q15.Mutual funds in India are primarily regulated by:

    • A.RBI
    • B.SEBI
    • C.IRDAI
    • D.PFRDA
    Show answer

    Answer: B. SEBI

    SEBI regulates mutual funds through AMFI guidelines.

  16. Q16.NBFC stands for:

    • A.Non-Banking Financial Company
    • B.National Banking Finance Corporation
    • C.Non-Bureau Finance Council
    • D.National Bank Finance Company
    Show answer

    Answer: A. Non-Banking Financial Company

    NBFCs provide financial services without holding a full banking license.

  17. Q17.The full form of IPO is:

    • A.Initial Public Offering
    • B.Internal Public Offering
    • C.Initial Private Order
    • D.Internal Private Offering
    Show answer

    Answer: A. Initial Public Offering

    IPO stands for Initial Public Offering.

  18. Q18.Which financial instrument represents ownership in a company?

    • A.Bonds
    • B.Shares/Equity
    • C.Fixed deposits
    • D.Debentures
    Show answer

    Answer: B. Shares/Equity

    Shares represent ownership stake in a company.

  19. Q19.Government securities (G-Secs) in India are issued on behalf of the government by:

    • A.SEBI
    • B.RBI
    • C.IRDAI
    • D.NABARD
    Show answer

    Answer: B. RBI

    RBI issues and manages government securities.

  20. Q20.The apex institution for financing small-scale industries in India is:

    • A.SIDBI
    • B.NABARD
    • C.RBI
    • D.EXIM Bank
    Show answer

    Answer: A. SIDBI

    SIDBI is the apex body for MSME financing.

  21. Q21.Which of the following is a public sector bank?

    • A.HDFC Bank
    • B.State Bank of India
    • C.ICICI Bank
    • D.Axis Bank
    Show answer

    Answer: B. State Bank of India

    SBI is India's largest public sector bank.

  22. Q22.A demat account is used to hold:

    • A.Cash deposits
    • B.Shares/securities in electronic form
    • C.Insurance policies
    • D.Loan documents
    Show answer

    Answer: B. Shares/securities in electronic form

    Demat accounts store securities electronically.

  23. Q23.The full form of KYC is:

    • A.Know Your Customer
    • B.Keep Your Cash
    • C.Know Your Currency
    • D.Keep Your Certificate
    Show answer

    Answer: A. Know Your Customer

    KYC stands for Know Your Customer.

  24. Q24.A CIBIL score reflects a person's:

    • A.Credit history and creditworthiness
    • B.Tax liability
    • C.Insurance coverage
    • D.Investment portfolio
    Show answer

    Answer: A. Credit history and creditworthiness

    CIBIL score indicates a borrower's creditworthiness.

  25. Q25.The full form of EMI is:

    • A.Equated Monthly Installment
    • B.Extended Monthly Income
    • C.Equal Money Instrument
    • D.Extra Monthly Investment
    Show answer

    Answer: A. Equated Monthly Installment

    EMI stands for Equated Monthly Installment.

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Frequently Asked Questions

Is Indian Financial System Quiz free to attempt on AajExam?

Yes. Indian Financial System Quiz is completely free. You only need a free AajExam account to track your score, view detailed solutions and unlock cross-attempt analytics.

How long does it take to complete Indian Financial System Quiz?

Indian Financial System Quiz runs on a 25-minute timer in real exam-style conditions. The clock starts the moment you click Start, mirroring the time pressure of the actual exam.

Are detailed solutions provided?

Yes. Every question on Indian Financial System Quiz ships with a complete step-by-step solution, the underlying concept, and (where applicable) shortcut tricks. You can also discuss any question with the AajExam community.

Can I attempt Indian Financial System Quiz multiple times?

Yes. You can attempt this quiz as many times as you like. Each attempt is recorded separately so you can track improvement in score, accuracy and time-management.

Which government exams does this quiz prepare me for?

Indian Financial System questions appear regularly in SSC CGL, CHSL, MTS, GD; IBPS PO, Clerk; SBI PO, Clerk; RRB NTPC, Group D; UPSC prelims and most State PSC exams. The specific weightage varies by exam — check the exam pattern on the corresponding AajExam exam page for details.

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