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

Question : 1

Which term is not related to banking ?

a) S.L.R.

b) Fixed Deposits

c) C.R.R.

d) N.E.E.R.

Question : 2

If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should

a) sell government securities

b) All of the above

c) lower cash reserve ratio

d) raise discount rates

Question : 3

With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?

a) The Banking Ombudsman can consider complaints from non-resident Indians having accounts in India

b) The service provided by the Banking Ombudsman is free

c) The order passed by the Banking Ombudsman are final and binding on the parties concerned

d) The Banking Ombudsman is appointed by the Reserve Bank of India

Question : 4

Which of the following committee examined and suggested financial sector reforms?

a) Bhagwati Committee

b) Narsimhan Committee

c) Chelliah Committee

d) Abid Hussain Committee

Question : 5

NABARD is related with

a) National Rural Development Institution

b) National Financial Institution

c) National Bank for Agriculture and Rural Development

d) National Agriculture Development Institution

Question : 6

Consider the following statements:

1. High growth will lead to inflation.
2. High growth will lead to deflation.

a) Only 2

b) Only 1

c) Both 1 and 2

d) Neither 1 nor 2