money supply, banking & financial institutions section 9 MCQ Questions & Answers Detailed Explanation

Question : 1

Consider the following liquid assets:

1. Demand deposit with the banks
2. Time deposit with the banks
3. Savings deposit with the banks
4. Currency

a) 4-3-2-1

b) 1-4-3-2

c) 2-3-1-4

d) 4-1-3-2

Question : 2

Which of the following can be used for checking inflation temporarily ?

a) Decrease in taxes

b) None of these

c) Increase in wages

d) Decrease in money supply

Question : 3

Inflation in the economy generally leads to which of the following:

1. Depreciation of currency
2. Appreciation of currency
3. Increase in real interest rate
4. Increase in nominal interest rate

a) (ii) & (iii) only

b) (i) & (iv) only

c) (i) & (iii) only

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

Question : 4

Consider the following statements regarding the term of appointment of RBI Governor:

a) As fixed by the Central Government while appointing, not exceeding three years and eligible for reappointment

b) As fixed by the Central Government while appointing, not exceeding five years and not eligible for reappointment

c) As fixed by the Central Government while appointing, not exceeding five years and eligible for reappointment

d) As fixed by the Central Government while appointing, not exceeding three years and not eligible for reappointment

Question : 5

Which of the following category of financial institutions are not involved in the implementation of Kisan Credit Cards (KCC)?

a) Cooperative Banks

b) Small Finance Banks

c) Regional Rural Banks (RRBs)

d) Non-Banking Financial Institutions (NBFCs)

Question : 6

As per the new Monetary Policy Framework, who will determine the inflation target?

a) Reserve Bank of India (RBI)

b) Govt. of India in consultation with RBI

c) Government of India (GoI)

d) Monetary Policy Committee