banking, security market & insurance section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

Under flexible exchange rate system, the exchange rate is determined

a) as a weighted index of a group of currencies

b) by the Central Bank

c) predominantly by market mechanism

d) by the World Trade Organization

Question : 2

Which one of the following does not implement the Self – Help Groups (SHGs) - Bank Linkage programme?

a) RRBs

b) Commercial Banks

c) NABARD

d) Co- operative Banks

Question : 3

Capital Market means

a) All of the above

b) Commodity Market

c) Money Market

d) Share Market

Question : 4

The most volatile part of the Organised Money Market in India is

a) Certificate of Deposit Market

b) Commercial Bill Market

c) Call Money Market

d) Government Security Market

Question : 5

Consider the following statement in regard to reserve currency :

1. Reserve currency acts as the international pricing currency in the global market for commodities like oil and gold.
2. The country whose local currency is accepted as reserve currency gets an added advantage in terms of lower commodity rates in the international market.

a) Both 1 and 2

b) 2 only

c) 1 only

d) Neither 1 nor 2

Question : 6

The ‘Currency Chests’ are store-houses where bank notes and rupee coins are clocked on behalf of

a) Commercial Banks

b) Public Sector Banks

c) State Bank of India

d) Reserve Bank of India