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

Question : 1

The slogan ‘Pure Banking, Nothing else’ is raised by

a) HDFC Bank

b) UTI Bank

c) SBI

d) ICICI Bank

Question : 2

Which of the following may lead to an increase in the overall prices?

1. Increase in effective demand
2. Decrease in the aggregate level of output
3. Increase in aggregate output
4. An increase in overall employment

a) (ii) & (iv) only

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

c) (i) & (iv) only

d) All of the above

Question : 3

Consider the following statements:

1. As per the Basel II accords, Banks have to maintain a minimum 8% CRAR
2. Out of 8% Banks have to keep a Tier I Capital of 5%
3. In India, the Banks are required to keep the CAR of 9% at least.

a) Only 1 & 2

b) Only 1

c) Only 1 & 3

d) All are correct statements

Question : 4

The ratio of a bank’s cash holdings to its total deposit liabilities is called the

a) Statutory Liquidity Ratio

b) Minimum Reserve Ratio

c) Variable Reserve Ratio

d) Cash Reserve Ratio

Question : 5

Which among the following would most likely follow if the Reserve Bank of India effects selling of the securities?

a) The cash resources at the disposal of the commercial banks increase.

b) The cash resources of the commercial banks remain unchanged.

c) The cash resources at the disposal of the commercial banks get diminished.

d) None of the above.

Question : 6

Consider the following statements:

1. Sensex is based on 50 of the most important stocks available on the Bombay stock Exchange (BSE).
2. For calculating the Sensex, all the stock are assigned proportional weightage.
3. New York Stock Exchange is the oldest stock exchange in the world.

a) 1 and 3

b) 2 only

c) 2 and 3

d) none