money supply, banking & financial institutions section 6 MCQ Questions & Answers Detailed Explanation

Question : 1

Which one of the following statements about foreign exchange reserves of India is not true?

a) It is maintained with the Reserve Bank of India

b) Presently foreign exchange situation is satisfactory in India

c) Special drawing rights are not included in it

d) It includes foreign currency assets and gold holdings of Reserve Bank of India

Question : 2

The Government is planning merger of public sector banks. It will benefit in which of the following ways:

1. Reducing cost and achieving efficiency
2. Achieving economies of scale
3. Leading to consolidation
4. The merged entity will have less NPA as compared to the individuals

a) (i), (ii) & (iii) only

b) (ii), (iii) & (iv)

c) (i) & (ii) only

d) All of the above

Question : 3

Which of the following scenarios can support sustainable economic growth?

1. Deflation
2. Low and moderate inflation
3. Galloping inflation
4. Hyperinflation

a) (i) & (ii) only

b) (ii) & (iii) only

c) (ii) only

d) All of the above

Question : 4

Who has the authority to issue currency notes in India?

a) Ministry of Finance

b) RBI

c) Central Government

d) RBI governor

Question : 5

The question of full capital account convertibility of Indian was explained by the committee known as

a) Rangarajan Committee

b) Hashim Committee

c) Tarapore Committee II

d) Vaghul Committee