money supply, banking & financial institutions section 6 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 12 EXERCISES
-
500+ Banking & Money Supply GK MCQ Quiz PDF For IBPS Exam »
-
Top 500+ Indian Financial System GK MCQ Live Quiz For SSC »
-
Top 500+ Money Supply & Banking Functions GK MCQ Quiz PDF »
-
New Banking & Financial Institutions GK MCQ Quiz For RRB »
-
Top 500+ Money Supply Methods & Concepts GK MCQ For UPSC »
-
Banking & Financial Institutions Features GK MCQ Quiz PDF »
-
New 500+ Money Supply Concepts Types Formulas GK MCQ Quiz »
-
499+ Indian Monetary Aggregates & Money Supply GK MCQ PDF »
-
Top 500+ Money & Banking Questions And Answers Test PDF »
-
New Banking & Money Supply Questions And Answers Test PDF »
-
Top 500+ Money Supply Trends & Developments MCQ For IBPS »
-
Top 500+ Banking & Financial Institutions GK MCQ Test PDF »
The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq
- CRISIL
- CARE
- ICRA
- ONICRA
(a) 1, 2 and 3
(b) 1 and 3
(c) 1, 3 and 4
(d) All of them
The correct answers to the above question in:
Answer: (d)
Practice Money Supply, Banking and Financial Institutions (money supply, banking & financial institutions section 6) Online Quiz
Discuss Form
Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
A commercial bank law creates credit only if it has
a) Permission of Reserve Bank of India
b) Cooperation of other banks
c) Cash in the vault
d) Excess reserves
Answer »Answer: (c)
A commercial bank is a profit-seeking business form, dealing in money and credit. It is a financial institution dealing in money in the sense that it accepts deposits of money from the public to keep them in its custody for safety.
So also, it deals in credit, i.e., it creates credit by making advances out of the funds received as deposits to needy people. So it creates credit from the cash deposits with it.
Question : 2
Pegging up of a currency means, fixing the value of a currency
a) at a higher level
b) leaving it to market forces
c) at a constant level
d) at a lower level
Answer »Answer: (c)
Currency pegging is the idea of fixing the exchange rate of a currency by matching its value to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold or silver.
A fixed exchange rate is usually used to stabilize the value of a currency, with respect to the currency or the other valuable it is pegged to.
Question : 3
What are the causes of inflation?
- Increase in demand for goods & services
- Decrease in the supply of goods & services
- Decrease in demand for goods & services
- Increase in the supply of goods & services
a) 3 and 4
b) 1 and 2
c) 1 and 4
d) 2 and 3
Answer »Answer: (b)
Inflation occurs due to two main factors:
- Increase in demand for goods & services,
- Decrease in the supply of goods & services
Question : 4
Which among the following is true about “deficit financing”?
a) Public expenditure in excess of public revenue
b) New currency replaced by old currency
c) Public revenue in excess of public expenditure
d) None of above
Answer »Answer: (a)
Deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.
Although budget deficits may occur for numerous reasons, the term usually refers to a conscious attempt to stimulate the economy by lowering tax rates or increasing government expenditures. The influence of government deficits upon a national economy may be very great.
It is widely believed that a budget balanced over the span of a business cycle should replace the old ideal of an annually balanced budget. Some economists have abandoned the balanced budget concept entirely, considering it inadequate as a criterion of public policy.
Question : 5
Which one of the following is not a feature of “Value Added Tax” ?
a) It is multi-point destination-based system of taxation.
b) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.
c) It is a tax levied on value addition at each stage of transaction in the production distribution chain.
d) It is basically a subject of the central government and the state governments are only a facilitator for its successful implementation.
Answer »Answer: (d)
VAT is the State Subject.
Question : 6
Other things being equal, what would be the impact of an increase in net capital inflow on the Indian currency?
a) There would be an increase in the demand for the American dollar and an appreciation of the currency.
b) There would be an increase in the supply of the American dollar and an appreciation of the currency.
c) There would be a decrease in the demand for the rupees (`) and a depreciation of the currency.
d) There would be a decrease in the supply of the American dollar and a depreciation of the currency.
Answer »Answer: (a)
GET Money Supply, Banking and Financial Institutions PRACTICE TEST EXERCISES
money supply, banking & financial institutions section 1
money supply, banking & financial institutions section 2
money supply, banking & financial institutions section 3
money supply, banking & financial institutions section 4
money supply, banking & financial institutions section 5
money supply, banking & financial institutions section 6
money supply, banking & financial institutions section 7
money supply, banking & financial institutions section 8
money supply, banking & financial institutions section 9
money supply, banking & financial institutions section 10
money supply, banking & financial institutions section 11
money supply, banking & financial institutions section 12
Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
Mensuration Aptitude Practice Mcq Questions IBPS Clerk 2024
Most Important Practice Mensuration aptitude multiple choice questions, answers with detailed solutions, PDF beginner to advanced for IBPS Clerk Prelims 2024
Continue Reading »
Top Clock Aptitude Questions and Answers PDF IBPS Clerk 2024
Recent Important IBPS Clerk Prelims 2024 Aptitude Clock MCQ Questions and answers with easy and logical explanation, PDF. Topic wise Free online practice test
Continue Reading »
New Time and Distance Aptitude MCQ PDF for IBPS Clerk 2024
Latest Time and Distance multiple choice questions and answers with solution PDF for IBPS Clerk Prelims 2024. Practice Speed Aptitude based Objective Mcq
Continue Reading »
Word Formation Objective Questions MCQs for IBPS Clerk 2024
Current year Important Objective Questions and Answers with Explanation for IBPS Clerk Prelims 2024 exam. English Vocabulary multiple choice practice exercises
Continue Reading »