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

Question : 1

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 : 2

If the US Central Bank raises their interest rate then it may lead to which of the following in the Indian economy:

a) Rupee appreciation

b) Investors moving to India

c) Rupee depreciation

d) Increase in money supply

Question : 3

Which of the following are among the taxes levied exclusively by the Central Government and are mentioned in the Union List of the Seventh Schedule of the Constitution of India?

1. Corporation Tax
2. Taxes on advertisement in the newspapers
3. Taxes on Agricultural income
4. Taxes on consumption/sale of electricity

a) Only 4

b) Only 2

c) 1 and 2

d) 3 and 4

Question : 4

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

a) HDFC Bank

b) UTI Bank

c) SBI

d) ICICI Bank

Question : 5

..... is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks.

a) Bank rate

b) Reverse repo rate

c) Prime lending rate

d) Repo rate

Question : 6

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