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

Answer: (a)

As per Banking Regulation Act 1949 (Section 36) (and not by RBI Act 1934), RBI, in the public interest, can supersede the Board of Directors (management) of a banking company.

As per RBI Act 1934 (Section 30), the Central Government can supersede the ‘Central Board’ of RBI, and thereafter the general superintendence shall be entrusted to such agency as the government may decide and can exercise all the powers exercised by ‘Central Board’.

Answer: (a)

Answer: (d)

The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October 1946.

These index numbers are being utilized for fixation and revision of wages and determination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on a month to month basis.

Answer: (c)

‘Monetary base’ is the total liability of RBI and it is also called ‘High Powered Money’ or ‘Reserve Money’ or M0.

Answer: (d)

NIFTY is an Index computed from performance of top stocks from different sectors listed on NSE (National stock exchange). NIFTY consists of 50 companies from 24 different sectors.

Indian Capital Markets are regulated and monitored by the Ministry of Finance, the Securities and Exchange Board of India and the Reserve Bank of India. It does not trade in mutual funds.

Answer: (b)

The main players in Indian capital markets are:

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