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

Question : 1

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 : 2

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 : 3

Consider the following statements:

1. Currencies and coins are fiat money
2. Currencies do not have intrinsic value but coins have
3. Currencies and coins are legal tenders
4. Cheques are legal tenders

a) (i) & (iii) only

b) (iii) & (iv) only

c) (i) only

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

Question : 4

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 : 5

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 : 6

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