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

Question : 1

In India, regional rural banks were established in the year

a) 1975

b) 1982

c) 1980

d) 1976

Question : 2

With reference to inflation in India, which of the following statements is correct?

a) The Reserve Bank of India has no role in controlling the inflation

b) Controlling the inflation in India is the responsibility of the Government of India only

c) Decreased money circulation helps in controlling the inflation

d) Increased money circulation helps in controlling the inflation

Question : 3

Which of the following are part of Monetary Base of an economy?

1. Currency notes and coins with the public
2. Vault cash of commercial banks
3. Deposits of commercial banks with RBI
4. Deposits of Government of India with RBI

a) (i) & (ii) only

b) (iii) & (iv) only

c) (i) only

d) All of the above

Question : 4

What is ‘Future Trading’?

1. It is a trade between two stock exchanges wherein it is decided to purchase stocks of each other on a fixed price throughout the year
2. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price
3. It is an agreement between stock exchange that they will not trade in stocks of each other in future or for a predetermined period of time

a) 2 only

b) 1 only

c) 3 only

d) All 1, 2 and 3

Question : 5

What does the letter ‘e’ denotes in the term ‘e - banking ’ ?

a) Electronic Banking

b) Expansion Banking

c) Essential Banking

d) Economic Banking

Question : 6

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