money supply, banking & financial institutions section 4 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 12 EXERCISES
-
500+ Banking & Money Supply GK MCQ Quiz PDF For IBPS Exam »
-
Top 500+ Indian Financial System GK MCQ Live Quiz For SSC »
-
Top 500+ Money Supply & Banking Functions GK MCQ Quiz PDF »
-
New Banking & Financial Institutions GK MCQ Quiz For RRB »
-
Top 500+ Money Supply Methods & Concepts GK MCQ For UPSC »
-
Banking & Financial Institutions Features GK MCQ Quiz PDF »
-
New 500+ Money Supply Concepts Types Formulas GK MCQ Quiz »
-
499+ Indian Monetary Aggregates & Money Supply GK MCQ PDF »
-
Top 500+ Money & Banking Questions And Answers Test PDF »
-
New Banking & Money Supply Questions And Answers Test PDF »
-
Top 500+ Money Supply Trends & Developments MCQ For IBPS »
-
Top 500+ Banking & Financial Institutions GK MCQ Test PDF »
The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq
(a) Purchase of Nedungadi Bank shares by Punjab National Bank
(b) Merger of Centurion Bank of Punjab with HDFC Bank
(c) Amalgamation of Global Trust Bank with Oriental Bank of Commerce
(d) Purchase of State Bank of India shares from RBI by the Central Government
The correct answers to the above question in:
Answer: (d)
Practice Money Supply, Banking and Financial Institutions (money supply, banking & financial institutions section 4) Online Quiz
Discuss Form
Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
Which of the following activities will increase liquidity in the economy?
- Advance tax payment
- Tax refunds for GST
- Front loading of government expenditure
- Recapitalization of public sector banks
a) (ii), (iii) & (iv) only
b) (iii) & (iv) only
c) (i) & (iii) only
d) All of the above
Answer »Answer: (a)
Advance tax payment means paying a part of the yearly taxes in advance to the government. This reduces liquidity in the economy because the money moves from public to government. (the logic is money with the government is not part of the money supply in the economy)
In the case of GST, the government credits/gives back the taxes paid on inputs, to the suppliers which increase liquidity in the economy. Front loading of government expenditure means the government is spending its yearly targeted expenditure in the starting months rather than in the year-end. This increases liquidity in the economy.
Recapitalization of public sector banks means the government is putting money in public sector banks which increases the lending capacity of the banks resulting in an increase in money supply and liquidity.
Question : 2
Name of four commodity exchanges working in the country:
- National Multi Commodity Exchange
- Multi Commodity Exchange
- National Commodity and Derivatives Exchange
- Indian Commodity Exchange
a) 1, 2, 3
b) 1 and 2
c) 1, 2, 3, 4
d) None of the Above
Answer »Answer: (c)
There are four commodity exchanges working in the country. They are
- NMCE (National Multi Commodity Exchange) - the oldest commodity exchange in the country which became operational in 2002,
- MCX (Multi Commodity Exchange),
- NCDEX (National Commodity and Derivatives Exchange) and
- ICEX (Indian Commodity Exchange).
Question : 3
The Apex bank for providing Agricultural Refinance in India is
a) NABARD
b) SBI
c) LDB
d) RBI
Answer »Answer: (a)
Question : 4
Which of the following kind of entities are covered under the Insolvency and Bankruptcy Code 2016?
- Individuals
- Partnership firms
- Limited Liability Partnerships
- Companies
a) (i) & (iv) only
b) (ii), (iii) & (iv) only
c) (iii) only
d) All of the above
Answer »Answer: (d)
The IBC Code 2016 covers solvency of Individuals/personal, Corporate Debtors, Proprietorship, Partnership firms and Limited Liability Partnership (LLPs) firms.
But the provisions of the IBC Code are being implemented/notified in a phased manner and till now only Corporate Debtors have been notified under IBC.
Personal insolvencies, Proprietorship (one-man company) and partnership firms (which are not "limited") and LLPs will be done soon.
Question : 5
Who maintains the foreign exchange reserve in India?
a) State Bank of India
b) Export-Import Bank of India
c) Ministry of Finance, Government of India
d) Reserve Bank of India
Answer »Answer: (d)
Question : 6
Which of the following statements are true regarding Housing Finance Companies (HFC)?
- HFCs are under direct regulation of RBI
- HFCs are a category of NonBanking Financial Companies (NBFCs)
a) (ii) only
b) Both (i) & (ii)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (b)
Recent changes: National Housing Bank was a wholly-owned (100%) subsidiary of RBI. But in 2019, Govt. of India took over the entire stake of NHB from RBI.
Housing finance companies (HFCs) are a category of NBFCs and till recently, HFCs were regulated by National Housing Bank (NHB). But this was changed in 2019 and now HFCs have come under the direct regulation of RBI.
This may have been done because of the bankruptcy issues going on in various housing finance companies like DHFL. Even if housing finance companies (HFCs) were a category of NBFCs, in the news the newspapers always mentioned NBFC and HFC separately.
The reason being NBFCs were regulated by RBI and HFC by National Housing Bank (which was regulated by RBI).
GET Money Supply, Banking and Financial Institutions PRACTICE TEST EXERCISES
money supply, banking & financial institutions section 1
money supply, banking & financial institutions section 2
money supply, banking & financial institutions section 3
money supply, banking & financial institutions section 4
money supply, banking & financial institutions section 5
money supply, banking & financial institutions section 6
money supply, banking & financial institutions section 7
money supply, banking & financial institutions section 8
money supply, banking & financial institutions section 9
money supply, banking & financial institutions section 10
money supply, banking & financial institutions section 11
money supply, banking & financial institutions section 12
Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »
Mensuration Aptitude Practice Mcq Questions IBPS Clerk 2024
Most Important Practice Mensuration aptitude multiple choice questions, answers with detailed solutions, PDF beginner to advanced for IBPS Clerk Prelims 2024
Continue Reading »
Top Clock Aptitude Questions and Answers PDF IBPS Clerk 2024
Recent Important IBPS Clerk Prelims 2024 Aptitude Clock MCQ Questions and answers with easy and logical explanation, PDF. Topic wise Free online practice test
Continue Reading »
New Time and Distance Aptitude MCQ PDF for IBPS Clerk 2024
Latest Time and Distance multiple choice questions and answers with solution PDF for IBPS Clerk Prelims 2024. Practice Speed Aptitude based Objective Mcq
Continue Reading »