Practice Quiz set 2 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Paper currency first started in India in
(a)
(b)
(c)
(d)
Q-2) Which of the following terms is not associated with banking?
(a)
(b)
(c)
(d)
CTS: Cheque Truncation System Cheque,
MICR: Magnetic Ink Character Recognition,
IFSC: Indian Financial System Code
FERA: Foreign Exchange Regulation Act.
Q-3) In which year the Indian rupee was devalued two times within a month?
(a)
(b)
(c)
(d)
In 1991, India faced a serious balance of payment crisis and was forced to sharply devalue its currency. The country was in the grip of high inflation, low growth and the foreign reserves were not even worth meeting three weeks of imports.
Under these situations, the currency was devalued to 17.90 against the dollar. In July of 1991, the Indian Government devalued the rupees by between 18 and 19%. The Government also changed its trade policy higher restrictive to a system of tradable EXIM SCRIPS.
Q-4) Consider the following liquid assets: - Demand deposits with the banks
- Time deposits with the banks
- Savings deposits with the banks
- Currency
The correct sequence of these decreasing orders of Liquidity is:
(a)
(b)
(c)
(d)
Currency is most liquid, because you can use it as and when you want. Time deposit with bank (e.g. fixed deposit), are least liquid compared to savings/demand deposit with banks and currency.
Q-5) Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?
- It decides the RBI’s benchmark interest rates.
- It is a 12-member body including the Governor of RBI and is reconstituted every year.
- It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
MPC has 6 members, not 12; and it’s headed by the RBI governor and not Finance Minister.
So statements 2 and 3 are wrong, hence by elimination, we reach answer (a) only 1 correct.
Q-6) The first Indian Bank to introduce ‘Smart Vault’, a fully automated locker facility using robotic technology to access lockers from the stafe vault is
(a)
(b)
(c)
(d)
ICICI, the first Indian bank has launched “Smart Vault” a fully automated locker facility using robotic technology to access lockers (available 24x7, including weekends and after banking hours.) from state vault.
Q-7) Which of the following is /are example (s) of ‘Near Money’? - Treasury Bill
- Credit Card
- Saving accounts and small time deposits
- Retail money market mutual funds
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
Near Money is a term used in economics to describe highly liquid assets that can easily be converted into cash.
Q-8) Arrange the following in ascending order, in relation to their establishment.- LIC
- IDBI
- SEBI
- UTI
Choose the correct answer from the codes given below.
(a)
(b)
(c)
(d)
Q-9) According to the Reserve Bank of India’s guidelines to banks, customers can change up to 20 pieces of soiled currency notes over the counter, free of charge up to a maximum value of
(a)
(b)
(c)
(d)
According to the RBI’s guidelines to banks, a person can change up to 20 pieces of notes with a maximum value of Rs.5000 per day, banks should exchange them over the counter, free of charge.
Q-10) ‘Basel III’ norms target at which of the following? - Improve the banking sector’s ability to absorb shocks arising from financial and economic stress.
- Improve risk management and governance.
- Strengthen banks’ transparency.
Choose the correct answer using the codes given below:
(a)
(b)
(c)
(d)
Basel III is basically a regulatory accord designed specifically for the banking sector. It aims to improve the supervision, regulation and risk management within the sector. It also targets at strengthening the transparency of the banks.