money supply, banking & financial institutions section 4 MCQ Questions & Answers Detailed Explanation

Question : 1

Indian Currency Printing Institutions are located in which of the following places?

1. Nasik
2. Hoshangabad
3. Hyderabad
4. Aurangabad
5. Devas

a) 1, 2, 3 and 4

b) 1, 2 and 4

c) 1, 2, 3 and 5

d) All of the above

Question : 2

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

Question : 3

Which of the following statements are true regarding the Foreign Currency Non-Resident (FCNR) Accounts:

1. Resident Indians and NRI's both can open
2. Only Foreign currency can be deposited
3. Rupee can be deposited
4. Can have both demand and time deposits

a) (ii) only

b) (ii) & (iv) only

c) (i) & (ii) only

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

Question : 4

An excise duty is a charge on which of the following?

a) Export of goods

b) Production or sale of goods

c) Production of goods

d) Consumption of good

Question : 5

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

Question : 6

The Prevention of Money Laundering Act came into force in India during

a) 1999

b) 2005

c) 2001

d) 1998