money supply, banking & financial institutions section 5 MCQ Questions & Answers Detailed Explanation

Question : 1

Match the following.

a) i-b, ii-a, iii-c

b) i-a, ii-b, iii-c

c) i-c, ii-b, iii-a

d) i-a, ii-c, iii-b

Question : 2

A rise in ‘SENSEX’ means:

a) a rise in prices of shares of all companies registered with Bombay Stock Exchange

b) an overall rise in prices of shares of group up companies registered with Bombay Stock Exchange

c) a rise in prices of shares of all companies registered with National Stock Exchange

d) a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange

Question : 3

Which one among the following is an appropriate description of deflation?

a) It is a persistent recession in the economy

b) it is a sudden fall in the value of a currency against other currencies

c) It is a persistent fall in the general price level of goods and services

d) It is fall in the rate of inflation over a period of time

Question : 4

The Cash Reserve Ratio is a tool of :

a) Agricultural policy

b) Fiscal policy

c) Monetary policy

d) Tax policy

Question : 5

Consider the following statements regarding Reserve Bank of India.

1. It is a banks to the Central Government.
2. It formulates and administer monetary policy.
3. It acts as an agent of government in respect of India.
4. It handles the borrowing programme of Government of India.

a) 2, 3 and 4

b) 3 and 4

c) 1, 2, 3 and 4

d) 1 and 2

Question : 6

”Smart Money” term is used for

a) eBanking

b) Cash with Public

c) Credit Card

d) Internet Banking