money supply, banking & financial institutions section 7 MCQ Questions & Answers Detailed Explanation

Answer: (b)

The Gross Non-Performing Advances ratio of Scheduled Commercial Banks has remained unchanged at 9.3 per cent between March and September 2019 and increased slightly for the Non-Banking Financial Corporations from 6.1 per cent to 6.3 per cent.

The capital to Risk-weighted Asset ratio (Capital adequacy ratio) of Scheduled Commercial Banks increased from 14.3 per cent to 15.1 per cent between March 2019 and September 2019.

Answer: (c)

Answer: (a)

The terms ‘bull’ and ‘bear’ describe upward and downward trends respectively of the stock market.

A bear market refers to a decline in prices, usually for a period of a few months, in a single security or asset, group of securities or the securities market as a whole.

A bull market is when prices are rising.

Answer: (b)

Answer: (a)

the main cost-push factor in India are:

1. Fluctuations in output and supply in both agriculture and industry sectors. Fluctuations in the output of food grains have been a major factor responsible for rising in food-grain prices as well as general prices. In the same way, the supply of manufactured goods also did not increase adequately in the last few years. Power breakdowns, strikes and lock-outs and shortage of transport facilities have been the major constraints responsible for lowering the production of manufactured goods. With ever-rising demand for manufactured goods, the producers are in a position to hike the prices of their products.
2. The problem of hoarding by traders and black marketeers.
3. Taxation gives the traders an opportunity to raise the prices of goods, the proportion of which is often more than the levy of taxes.
4. Administered Prices.
5. Hike in Oil Prices.

Answer: (a)

Revaluation is a calculated adjustment to a country’s official exchange rate relative to a chosen baseline.

The baseline can be anything from wage rates to the price of gold to a foreign currency.

In a fixed exchange rate regime, only a decision by a country’s government (i.e. central bank) can alter the official value of the currency.

It is the opposite of devaluation.