money supply, banking & financial institutions section 3 MCQ Questions & Answers Detailed Explanation

Answer: (b)

Both the terms are related to the stock market. Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price.

A “bear” is considered to be the opposite of a bull. Bear investors believe that the value of a specific security or an industry is likely to decline in the future.

Answer: (d)

Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price.

A "bear" is considered to be the opposite of a bull. Bear investors believe that the value of a specific security or an industry is likely to decline in the future.

Answer: (d)

A progressive tax is a tax in which the tax rate increases as the taxable amount increases.

The term “progressive” refers to the way the tax rate progresses from low to high, with the result that a taxpayer’s average tax rate is less than the person’s marginal tax rate.

Answer: (b)

Suppose country A imposed a tariff against country B to reduce imports from B. Then it will lead to a reduction in demand of currency B for import purposes, which will lead to depreciation of currency B, resulting in negating the effect of tariffs imposed.

In a market-determined exchange rate, the rate of exchange between two currencies depends only on the demand and supply of the two currencies.

But the demand and supply of two currencies may depend on several factors like export and import and foreign people coming in or going out of the country and so on.

Answer: (d)

Answer: (d)

The nationalised banks are Central Bank of India, Bank of India, Punjab National Bank, Canara Bank, United Commercial Bank, Syndicate Bank, Bank of Baroda, United Bank of India, Union Bank of India, Dena Bank, Allahabad Bank, Indian Bank, Indian Overseas Bank Bank of Maharashtra.