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

Question : 1

Which of the following agencies conducts ‘inflation expectation survey’ of households in India?

a) National Statistical Office

b) Reserve Bank of India

c) Ministry of Statistics and Programme Implementation

d) Ministry of Finance

Question : 2

Opening the saving bank account for a minor girl will be called as which of the following in Banking terminology?

a) Merchant Banking

b) Corporate Banking

c) Social Banking

d) Retail Banking

Question : 3

What do you understand by the term “Jobber”?

a) A stock dealer who deals directly with the public for which he gets a commission

b) A stock dealer who is a member of a stock exchange and deals with the public only through the medium of brokers

c) A broker who buys and sells on behalf of his clients

d) A stock broker who deals only with shares and not any other form of securities

Question : 4

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 : 5

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 : 6

Consider the following statements.

1. The National Housing Bank, the apex institution of housing finance in India, was set up as a whollyowned subsidiary of the Reserve Bank of India.
2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.

a) 2 only

b) 1 only

c) Both 1 and 2

d) Neither 1 nor 2