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

Question : 1

Variation in Cash Reserve Ratio and Open Market Operations are instruments of

a) Fiscal policy

b) Monetary policy

c) Budgetary policy

d) Trade policy

Question : 2

Consider the following statements:

1. There is almost no speculation in the G-sec market
2. The Investors in the G-Sec Market are predominantly the institutions

a) Only 2 is correct

b) Only 1 is correct

c) Both 1 & 2 are correct

d) Neither 1 nor 2 is correct

Question : 3

Consider the following statements regarding "Account Aggregators":

1. These are a new class of NonBanking Financial Companies
2. They will provide lending to small customers
3. They will provide information to the customers of their financial assets invested in different instruments

a) (i) & (ii) only

b) (i) & (iii) only

c) (i) only

d) (iv) only

Question : 4

Consider the following statements.

1. The National Housing Bank (NHB), the apex institution of housing finance in India was set-up as a wholly-owned subsidiary of the Reserve Bank of India.
2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1

Question : 5

Which of the following statements are true in case "the currency of two countries are at purchasing power parity":

a) PPP exchange rate is equal to Real exchange rate

b) Nominal exchange rate is equal to Real exchange rate

c) PPP exchange rate is equal to Nominal exchange rate

d) PPP, Nominal and Real exchange rates become equal

Question : 6

The _____ is the total amount of monetary assets available in an economy at a specific time.

1. Money Supply
2. Money Stock
3. Money Demand
4. Stock in Demand

a) 3 and 4

b) 1 and 2

c) 1 and 3

d) 2 and 4