History of Banking

36. The term “moral hazard” refers to:

a) Integration of banks globally

b) Government intervention in banking crises

c) Taking excessive risks due to safety nets

d) Bankruptcy of major financial institutions

37. The term “fractional banking” was first used in:

a) 1694

b) 1782

c) 1890

d) 1933

38. Who is considered the first banker in India?

a) Reserve Bank of India

b) State Bank of India

c) Bank of India

d) Bank of Baroda

39. The term “bank run” refers to:

a) Banks carrying out excessive lending

b) Customers withdrawing money from a bank en masse

c) Central banks lowering interest rates rapidly

d) Banks merging to form larger entities

40. The Bank of France was established in:

a) 1800

b) 1848

c) 1875

d) 1913