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

Question : 1

To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare

a) the wholesale price index over different periods of time for different regions

b) the distribution of income of different sets of income recipients at a point of time

c) the distribution of income of an idential set of income recipients in different period of time

d) the availability of foodgrains among two sets of people, one rich and the other poor, over different period of time

Question : 2

Consider the following statements regarding Open Market Operations:

1. It is conducted by Commercial Banks
2. It is conducted by RBI
3. It is about debt securities
4. It is about equity securities

a) (ii) & (iii) only

b) (ii), (iii) & (iv) only

c) (i) & (iii) only

d) All of the above

Question : 3

The Non-Votable charges or ‘Charged Expenditure’ included in the Union Budget include :

1. Salary and Allowances of the Presiding Officers of the houses of Parliament.
2. Salary and Allowances of the Judges of the Supreme Court and High Courts.
3. Salary and Allowances of the CAG.
4. Pension of the retired Judges of the Supreme Court.
5. Pension of the retired Judges of High Courts.

a) 1, 2 and 3

b) 1 and 2

c) 1, 2, 3 and 4

d) All of them

Question : 4

As in December 2017, Indian government’s holding in which of the following banks was maximum?

a) United Bank of India

b) State Bank of India

c) Bank of India

d) Central Bank of India

Question : 5

Which of the following statements is not correct regarding the ‘Banking Sector’ of India?

a) At present there are 26 Nationalized Banks in India.

b) Banks have the freedom to regulate their own Savings Bank Deposit interest rates.

c) Foreign Banks and Regional Rural Banks do not come under the category of Scheduled Commercial Banks.

d) Narsimham Committee is related to Banking Sector reforms.

Question : 6

Which of the following are part of capital account transactions?

1. Masala bonds
2. Purchase of capital equipment from abroad
3. NRI deposits in Indian banks

a) (i) & (ii) only

b) (iii) only

c) (i) only

d) (i) & (iii) only