money supply, banking & financial institutions section 2 MCQ Questions & Answers Detailed Explanation

Question : 1

The basic aim of Lead Bank Scheme is that

a) there should be stiff competition among the various nationalised banks

b) all the banks should make intensive efforts to mobile deposits

c) individual banks should adopt particular districts for intensive development

d) big banks should try to open offices in each district

Question : 2

Consider the following statements:

1. As per the Banking Regulation Act 1949, RBI, in the public interest, can supersede the management of a banking company.
2. As per the RBI Act 1934, RBI, in the public interest can supersede the management of a non-banking financial company

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 3

Which of the following statements are true regarding Foreign Portfolio Investors (FPIs):

1. They fund India’s Current Account Deficit (CAD)
2. They help in achieving governments disinvestment target
3. They are liable to pay capital gain tax in India

a) (ii) & (iii) only

b) (iii) only

c) (i) only

d) All of the above

Question : 4

a) A-4; B-3; C-2; D-5

b) A-1; B-2; C-3; D-5

c) A-4; B-3; C-2; D-1

d) A-3; B-4; C-2; D-1

Question : 5

RBI acts as a 'lender of last resort' to ensure the following in the economy:

1. To prevent possible failure of the banks
2. To protect the interest of the depositors of the banks
3. To ensure financial stability in the economy

a) (i) & (ii) only

b) (i) & (iii) only

c) (i) only

d) All of the above

Question : 6

Since the economic reforms were launched in India, which one of the following statements is true for Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) of the commercial banks?

a) SLR has been reduced but CRR has been raised

b) Both SLR and CRR have been reduced

c) SLR has been increased but CRR has been reduced

d) Both SLR and CRR have been raised