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

Question : 1

The terms ‘Bull’ and ‘Bear’ are associated with

a) Stock Market

b) Internet Trade

c) Banking

d) Foreign Trade

Question : 2

Consider the following statements.

1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur, if the accountholders fail to repay dues.
2. CAR is decided by each individual bank.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1

Question : 3

Consider the following statements regarding "Sovereign Wealth Funds (SWFs)":

1. SWFs are State-owned investment funds
2. SWFs are established through fiscal and trade surpluses
3. They are used to stabilize the budget and economy of the country from excess volatility in revenues
4. SWFs typically invests in government-owned projects/assets

a) (ii) & (iii) only

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

c) (i) & (iv) only

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

Question : 4

Consider the following statements:

1. Non-Performing Assets of scheduled commercial banks is more than non-banking financial companies
2. Presently, the Capital Adequacy Ratio of scheduled commercial banks is around 15%

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 5

“Bad money (if not limited in quantity ) drives good money out of circulation.” The above statement is from which among the following laws?

a) Keynes’ law

b) Gresham’s law

c) Wagner’s law

d) Grimm’s law

Question : 6

Which among 1the following is considered to be a part of Shadow Banking in India?

a) Business Correspondents

b) Non-Banking Financial Companies

c) Bankassurance Providers

d) Private Banks