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

Question : 1

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 : 2

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 : 3

Which among the following is a function of the Reserve Bank of India?

a) Collecting and compilation of statistical information relating to banking and other financial sector

b) Accepting deposits from the public

c) Banks underwrite the securities issued by public or private organisations

d) Bank issues the letter of credit to their customers certifying their creditability

Question : 4

Brent index is associated with :

1. crude oil prices
2. copper future prices
3. gold future prices
4. shipping rate index

a) Only 2

b) Only 1

c) Only 3

d) Only 4

Question : 5

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 : 6

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.