money supply, banking & financial institutions section 1 MCQ Questions & Answers Detailed Explanation
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The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq
- Increase in deposit rate results in higher savings
- Increase in deposit rate results in fall in credit off takes
- Increase in deposit rate results in increase in investment
(a) 1 & 3
(b) 1 & 2
(c) 1, 2, 3
(d) Only 1
The correct answers to the above question in:
Answer: (a)
Practice Money Supply, Banking and Financial Institutions (money supply, banking & financial institutions section 1) Online Quiz
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Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
What are “Futures”?
a) Securities or commodities sold or bought with the assumption of delivery at a later stage
b) Particular types and quantities of securities and com-modities bought for selling at higher prices
c) Shares and debentures bought at a cheaper rate and sold later at high rates
d) None of these
Answer »Answer: (a)
Question : 2
For which of the following, the Reserve Bank of India has stipulated a maximum Capital Adequacy Requirements in India?
a) Private Sector Banks
b) Local Area Banks
c) Banks that Undertake Insurance Business.
d) Scheduled Commercial Banks
Answer »Answer: (b)
Question : 3
Saving is that portion of money income that is
a) spent on health and education
b) spent for consumer durables
c) spent for development of Industries
d) not spent on consumption
Answer »Answer: (d)
Saving is income not spent or deferred consumption.
In economics, it refers to any income not used for immediate consumption– consuming less out of a given amount of resources in the present in order to consume more in the future.
Saving, therefore, is the decision to defer consumption and to store this deferred consumption in some form of asset.
Question : 4
Tarapore Committee was associated with which one of the following?
a) Full capital account convertibility
b) Effect of oil prices on the Indian economy
c) Foreign exchange reserves
d) Special Economic Zones
Answer »Answer: (a)
Question : 5
‘Green Banking’ means :
a) Banks financing farmers
b) Banks financing proenvironmental projects
c) Banks financing agriculture
d) Banks financing irrigation projects
Answer »Answer: (b)
Green Banking refers to practices and guidelines that make banks sustainable in the economic, environmental, and social dimensions.
Green banking is also known as environment-friendly banking, ethical banking or sustainable banking.
A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
Question : 6
Consider the following statements. The function of commercial banks in India includes
- Purchase and sale of shares and securities on behalf of customers.
- Acting as executors and trustees of wills.
a) Only 2
b) Neither 1 nor 2
c) Both 1 and 2
d) Only 1
Answer »Answer: (a)
GET Money Supply, Banking and Financial Institutions PRACTICE TEST EXERCISES
money supply, banking & financial institutions section 1
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money supply, banking & financial institutions section 12
Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
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