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

Question : 1

The problem of international liquidity is related to the nonavailability of:

a) Gold and silver

b) Dollars and other hard currencies

c) Goods and services

d) Exportable surplus

Question : 2

Who are the creditors of a Corporation ?

a) Both Bond and Stock holders

b) Holders of preferred stock

c) Bond holders

d) Stock holders

Question : 3

Certificate of Deposit (CD) and Commercial Paper were introduced by a Bank in March 1989:

1. Reserve Bank of India
2. State Bank of India
3. HDFC Bank
4. ICICI Bank

a) 2 only

b) 1 only

c) 3 only

d) 4 only

Question : 4

Number of times a unit of money changes hands in the course of a year is called

a) Purchasing power of money

b) Value of money

c) Velocity of money

d) Supply of money

Question : 5

Which among the following is the only correct statement?

a) Money market meets long term financing needs

b) Ways and means advances given by RBI are nowhere related to State’s revenue

c) Recession in industrial sector in India is normally due to fall in exports

d) Exchange rate is fixed by RBI

Question : 6

Which among the following is a correct definition of currency drain?

a) A currency drain is an export of the domestic currency

b) A currency drain is the currency holding by a parallel economy

c) A currency drain is an increase in currency held outside the banks.

d) None of these