money supply, banking & financial institutions section 8 MCQ Questions & Answers Detailed Explanation

Question : 1

Which of the following statements will be considered as part of ‘Transfer Payments’ in the balance of payment?

1. Gift sent by an NRI to his friend in India
2. Money sent by an Indian employee to his family in India who has gone abroad temporarily

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 2

Money Multiplier in India is defined as

a) $\text"Broad Money"/\text"Reserve Money"$

b) $\text"Base Money"/\text"Reserve Money"$

c) $\text"Reserve Money"/\text"Base Money"$

d) $\text"Broad Money"/\text"Base Money"$

Question : 3

Which one of the following is not a nationalised bank?

a) Canara Bank

b) Punjab National Bank

c) ICICI Bank

d) Bank of Baroda

Question : 4

Demand management to control inflation may lead to:

a) increase in government expenditure

b) expansion of credit

c) increase in unemployment due to contraction of the economy

d) creation of excess liquidity

Question : 5

The largest commercial bank of India is

a) State Bank of India

b) Union Bank of India

c) ICICI

d) NABARD

Question : 6

Which among the following is not an instrument of qualitative control in India ?

a) Regulation of the Consumer Credit

b) Margin Requirements

c) Rationing of the Credit

d) Variable Costs and Reserves