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

Question : 1

Who all are the main players in the Indian capital market?

1. Insurance companies
2. Development Finance Institutions (DFI)
3. Non-Banking Finance Companies, (NBFCs)
4. Non-Banking Financial Institutions.

a) 1, 2, 3

b) 1, 2, 3, 4

c) 1, 2,

d) 1

Question : 2

Which of the following statements is/ are correct?

1. NIFTY is based upon 50 firms in India.
2. NIFTY is governed and regulated by the Reserve Bank of India.
3. NIFTY does not trade in mutual funds.

a) Only 2

b) Only 1

c) Only 3

d) 1 and 3

Question : 3

Consider the following statements regarding Monetary Base in India:

1. It is the total liability of RBI
2. It is the total liability of the Government of India

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 4

The term "Phantom Capital" was recently in the news, is related to which of the following:

a) Recapitalization of public sector banks

b) Circular Flow of Income in an economy

c) Fake currency notes

d) Foreign Direct Investment

Question : 5

Consider the following statements regarding the Office of Economic Advisor (OEA):

1. It is attached to the Ministry of Finance.
2. The weekly compilation and Publication of Wholesale Price Indices (WPI) is done by the Office of Economic Advisor.

a) Only 2

b) Only 1

c) Both 1 and 2

d) Neither 1 nor 2

Question : 6

Consider the following statement:

1. IRDA is a multimember nodal agency
2. It is vested with regulatory powers in respect of the insurance sector similar to those vested in SEBI in respect of the capital markets and of RBI for the banking sector.
3. The IRDA Act, 1999 cleared the way for private sector entry into the insurance business.

a) 2 only

b) 1 only

c) 3 only

d) All of the Above