Answer: D

Explanation:

A small finance bank is a type of institution that provides basic banking services. They are established as public limited companies in the private sector under the Companies Act, of 2013. It provides for the acceptance of deposits and loans. The objective behind the institution is to provide financial inclusion to those sections of the economy that are not being served by other banks. Hence, statement 1 is incorrect.

The objectives of small finance banks are to supply credit to small business units; Small and marginal farmers, micro and small-scale industries and other unorganized sectors. Hence, statement 2 is incorrect.

Answer: B

Explanation:

Payments banks are a new format of banks authorized by the Reserve Bank of India. These banks are allowed to accept deposits of up to one lakh per customer. These banks are permitted to open savings as well as current accounts. Hence, statement 1 is incorrect.

Payments banks cannot issue credit cards or lend to customers. Airtel was launched as India's first payments bank. Payments banks are also authorized to accept remittances. Hence, statement 2 is correct.

Answer: D

Explanation:

A budget is an annual financial statement that shows the estimated government expenditure and expected government receipts for the coming financial year.

Balanced Budget: A budget is said to be a balanced budget when the estimated government expenditure is equal to the expected government receipts in a given financial year. A balanced budget does not ensure financial stability in times of economic downturn.

Merits: Ensures economic stability.

Defect: It does not provide any solution for problems like unemployment. It prevents the government from spending on public welfare.

Hence option (d) is correct.

Answer: B

Explanation:

Double-dip recession: In economic terms, when the GDP of an economy goes into negative territory, followed by a brief period of showing positive growth, the economy faces a double-dip recession. Hence, option (b) is correct.

Answer: C

Explanation:

The debt security auctioned by the RBI to raise debt for state governments is the State Development Loan (SDL). SDL is similar to dated securities issued by the Central Government. Each state can borrow up to a specified limit through state development loans. SDL Securities (SLR) and Statutory Liquidity Ratio (LAF) are eligible securities for the Liquidity Adjustment Facility of RBI. SDLs do not have any credit risk and in this respect, they are similar to Central Government Securities. Hence, statement 1 is incorrect.

SDL securities are issued by states while auctioned by RBI. The greater the fiscal power of a state. The lower the interest rate (yield) he has to pay for SDL borrowings. The interest rate of SDL securities is determined through auction. Hence, statement 2 is incorrect.