money supply, banking & financial institutions section 10 MCQ Questions & Answers Detailed Explanation

Question : 1

Indian rupee had been made fully convertible on

a) current account in August, 1994

b) current account in April, 1995

c) capital account in August, 1994

d) current account on March 1, 1993

Question : 2

Consider the following statements regarding the insurance cover provided to depositors by Deposit Insurance and Credit Guarantee Corporation (DICGC)

1. All commercial banks and urban cooperative banks have to register with DICGC for providing insurance to depositors
2. RBI incurs the insurance premium burden
3. Government incurs the insurance premium burden

a) (i) & (ii) only

b) (iii) only

c) (i) only

d) (i) & (iii) only

Question : 3

Name the 3 commodities in the Wholesale Price Index.

1. Primary articles
2. Fuel, power, light and lubricants
3. Manufactured products
4. Food articles and industrial raw materials

a) 2, 3 and 4

b) 1, 2 and 3

c) 1, 3 and 4

d) 1 and 3

Question : 4

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 : 5

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 : 6

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