money supply, banking & financial institutions section 1 MCQ Questions & Answers Detailed Explanation

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

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

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

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

Question : 5

‘Green Banking’ means :

a) Banks financing farmers

b) Banks financing proenvironmental projects

c) Banks financing agriculture

d) Banks financing irrigation projects

Question : 6

Consider the following statements. The function of commercial banks in India includes

1. Purchase and sale of shares and securities on behalf of customers.
2. Acting as executors and trustees of wills.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1