money supply, banking & financial institutions section 4 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 12 EXERCISES
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The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq
(a) Export of goods
(b) Production or sale of goods
(c) Production of goods
(d) Consumption of good
The correct answers to the above question in:
Answer: (b)
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Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
Which category of banks have the highest share in agricultural credit:
a) Regional Rural banks
b) Cooperative Banks
c) Commercial Banks (excluding regional rural banks)
d) Non-Banking Financial Companies
Answer »Answer: (c)
Share of Commercial banks credit to agriculture sector is around 80%.
Question : 2
Indian Currency Printing Institutions are located in which of the following places?
- Nasik
- Hoshangabad
- Hyderabad
- Aurangabad
- Devas
a) 1, 2, 3 and 4
b) 1, 2 and 4
c) 1, 2, 3 and 5
d) All of the above
Answer »Answer: (c)
Question : 3
Increase in India's trade deficit may lead to which of the following:
a) Depreciation of rupee
b) Appreciation of rupee
c) Increase in money supply in the economy
d) Increase in GDP
Answer »Answer: (a)
When trade deficit increases that means imports are increasing in the country as compared to exports.
Increase in imports causes an increase in demand for dollars which results in decline in value of Indian currency. Increase in trade deficit results in money going out of the Indian economy.
Question : 4
Convertibility of the rupee implies
a) freely permitting the conversion of rupee to other major currencies and vice-versa
b) developing an international market of currencies in India
c) allowing the value of the rupee to be fixed by market forces
d) being able to convert rupee notes into gold
Answer »Answer: (a)
Question : 5
The Prevention of Money Laundering Act came into force in India during
a) 1999
b) 2005
c) 2001
d) 1998
Answer »Answer: (b)
Question : 6
Narsimhan Committee was related to which of following reforms?
a) Tax structure reforms
b) Planning implementation reforms
c) Banking structure reforms
d) High education reforms
Answer »Answer: (c)
GET Money Supply, Banking and Financial Institutions PRACTICE TEST EXERCISES
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