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

Question : 1

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 : 2

Consider the following statements.

1. Reserve Bank of India was nationalised in the year 1949.
2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1

Question : 3

Which of the following statements are true regarding RBI?

1. As per the RBI Act 1934, RBI is bound to undertake the receipt and payments and other banking operations of the central government
2. As per the RBI Act 1934, RBI is obliged to act as a banker to State governments

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 4

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 : 5

Consider the following statements:

1. Increase in deposit rate results in higher savings
2. Increase in deposit rate results in fall in credit off takes
3. Increase in deposit rate results in increase in investment

a) 1 & 3

b) 1 & 2

c) 1, 2, 3

d) Only 1

Question : 6

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