Finance Ministry Bodies Practice Questions
20 free Finance Ministry Bodies practice questions for the Indian Polity. Tap an option to answer — you get instant feedback, the correct answer, and a detailed explanation for every question.
Which of the following is a non-constitutional body under the Ministry of Finance?
- A Finance Commission
- B GST Council
- C SEBI (Regulator)
- D Election Commission
Correct answer: SEBI (Regulator)
SEBI is a statutory body under the Ministry of Finance. It regulates the securities market. It is not mentioned in the Constitution.
The Securities and Exchange Board of India (SEBI) was established in which year?
- A 1985
- B 1988
- C 1992
- D 2000
Correct answer: 1988
SEBI was established in 1988 and given statutory status in 1992. It regulates capital markets. It protects investors' interests.
Which Act governs SEBI?
- A RBI Act 1934
- B SEBI Act 1992
- C Companies Act 2013
- D Banking Regulation Act
Correct answer: SEBI Act 1992
SEBI operates under the SEBI Act, 1992. This Act defines its powers and functions. It ensures market regulation.
Which body regulates the banking system in India?
- A SEBI
- B RBI
- C IRDAI
- D PFRDA
Correct answer: RBI
The Reserve Bank of India (RBI) regulates the banking system. It controls monetary policy. It ensures financial stability.
Which Act established the Reserve Bank of India?
- A RBI Act of 1934
- B Banking Act 1949
- C Finance Act 1950
- D SEBI Act 1992
Correct answer: RBI Act of 1934
The RBI was established under the RBI Act, 1934. It started functioning in 1935. It is the central bank of India.
Which body regulates the insurance sector in India?
- A SEBI
- B RBI
- C IRDAI
- D PFRDA
Correct answer: IRDAI
IRDAI regulates the insurance sector in India. It ensures fair practices and protects policyholders. It operates under a statutory framework.
Which Act governs IRDAI?
- A Insurance Act 1938
- B IRDA Act 1999
- C SEBI Act 1992
- D RBI Act 1934
Correct answer: IRDA Act 1999
IRDAI operates under the IRDA Act, 1999. It was established to regulate the insurance industry. It ensures transparency and growth.
Which body regulates pension funds in India?
- A SEBI
- B RBI
- C IRDAI
- D PFRDA
Correct answer: PFRDA
PFRDA regulates pension funds in India. It oversees the National Pension System. It ensures secure retirement benefits.
Which Act established PFRDA?
- A Pension Act 2000
- B PFRDA Act 2013
- C Finance Act 2010
- D SEBI Act 1992
Correct answer: PFRDA Act 2013
PFRDA was established under the PFRDA Act, 2013. It regulates pension schemes. It promotes old-age income security.
Which of the following is a function of SEBI?
- A Issuing currency
- B Regulating stock markets
- C Managing insurance policies
- D Controlling inflation
Correct answer: Regulating stock markets
SEBI regulates stock markets and protects investors. It ensures fair trading practices. It promotes market development.
Which body is responsible for issuing currency in India?
- A SEBI
- B RBI
- C IRDAI
- D PFRDA
Correct answer: RBI
RBI is responsible for issuing currency in India. It manages the supply of money. This helps control inflation.
Which of the following is NOT a function of RBI?
- A Issuing currency
- B Regulating banks
- C Managing stock exchanges
- D Controlling credit supply
Correct answer: Managing stock exchanges
Managing stock exchanges is the function of SEBI, not RBI. RBI focuses on banking and monetary policy. This distinction is important.
Which of the following ensures investor protection in capital markets?
- A RBI
- B SEBI
- C IRDAI
- D PFRDA
Correct answer: SEBI
SEBI ensures investor protection in capital markets. It regulates trading practices. It prevents fraud and manipulation.
Which body ensures policyholder protection in insurance sector?
- A SEBI
- B RBI
- C IRDAI
- D PFRDA
Correct answer: IRDAI
IRDAI ensures protection of policyholders. It regulates insurance companies. It promotes transparency and fairness.
Which of the following is a feature of non-constitutional bodies?
- A Explicitly mentioned in Constitution
- B Created by Acts of Parliament
- C Judicial authority
- D Permanent bodies only
Correct answer: Created by Acts of Parliament
Non-constitutional bodies are created by Acts of Parliament. They are not mentioned in the Constitution. They have statutory powers.
Which of the following bodies manages pension schemes?
- A SEBI
- B RBI
- C IRDAI
- D PFRDA
Correct answer: PFRDA
PFRDA manages pension schemes like NPS. It ensures retirement security. It regulates pension funds.
Which of the following is NOT under Ministry of Finance?
- A SEBI
- B RBI
- C IRDAI (Insurance Regulator)
- D Election Commission
Correct answer: Election Commission
The Election Commission is a constitutional body. It is not under the Ministry of Finance. Others are financial regulatory bodies.
Which of the following regulates mutual funds in India?
- A RBI
- B SEBI
- C IRDAI
- D PFRDA
Correct answer: SEBI
SEBI regulates mutual funds in India. It ensures transparency and investor protection. It monitors fund operations.
Which concept is promoted by finance ministry bodies?
- A Judicial independence
- B Financial stability
- C Political governance
- D Military strength
Correct answer: Financial stability
Finance ministry bodies promote financial stability. They regulate markets and institutions. This ensures economic growth.
Which of the following best describes SEBI, RBI, IRDAI, and PFRDA?
- A Judicial authorities and courts
- B Financial regulatory bodies
- C Legislative bodies
- D Executive ministries
Correct answer: Financial regulatory bodies
These bodies are financial regulatory authorities. They oversee banking, insurance, and markets. They ensure proper functioning of the financial system.