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

Question : 1

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 : 2

Priority Sector lending by banks in India constitutes the lending to

a) Micro and small enterprises

b) All of the above

c) Weaker sections

d) Agriculture

Question : 3

The _________ bank linkage programme continued to be the main micro-finance model by which the formal banking system reaches micro-entrepreneurs (including farmers).

1. Self-Help Group
2. Indian bank
3. SBI
4. PNB

a) 2 only

b) 1 only

c) 3 only

d) 4 only

Question : 4

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 : 5

Study the following statements with regard to Reserve Bank of India and select your answer from the codes given below.

1. It is the Apex Bank.
2. It regulates the money supply.
3. It gives loan to the business houses.
4. It supervises the operations of NABARD.

a) 2 and 4

b) 1, 2 and 4

c) 1, 2 and 3

d) 1 and 2

Question : 6

Who has the authority to issue currency notes in India?

a) Ministry of Finance

b) RBI

c) Central Government

d) RBI governor