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

Question : 1

Convertibility of rupee implies:

a) allowing the value of rupee to be fixed by market forces

b) being able to convert rupee notes into gold

c) freely permitting the conversion of rupee to other currencies and vice versa

d) developing an international market for currencies in India

Question : 2

Open market Operation by RBI are the part of its :

a) Fiscal Policy

b) Income Policy

c) Credit Policy

d) Monetary Policy

Question : 3

Consider the following statements regarding the recently launched “India Post Payment Bank”:

1. It allows demand and fixed deposit both
2. It allows savings and current accounts both
3. It is a public sector company

a) (i) & (iii)

b) (ii) & (iii) only

c) (i) only

d) None of the above

Question : 4

With reference to the governance of public sector banking in India, consider the following statements.

1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1

Question : 5

Prime Minister, on 8th of Nov 2016, declared that the existing Rs. 500 and Rs. 1000 notes will not be legal tender. This was done under which of the following Act.

a) Banking regulation Act 1949

b) Payment and Settlement Systems Act 2007

c) RBI Act 1934

d) Does not require any statutory backing

Question : 6

The rate of tax increase as the amount of the tax base increases is called

a) Regressive tax

b) Degressive tax

c) Proportional tax

d) Progressive tax