money supply, banking & financial institutions section 11 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 12 EXERCISES
-
500+ Banking & Money Supply GK MCQ Quiz PDF For IBPS Exam »
-
Top 500+ Indian Financial System GK MCQ Live Quiz For SSC »
-
Top 500+ Money Supply & Banking Functions GK MCQ Quiz PDF »
-
New Banking & Financial Institutions GK MCQ Quiz For RRB »
-
Top 500+ Money Supply Methods & Concepts GK MCQ For UPSC »
-
Banking & Financial Institutions Features GK MCQ Quiz PDF »
-
New 500+ Money Supply Concepts Types Formulas GK MCQ Quiz »
-
499+ Indian Monetary Aggregates & Money Supply GK MCQ PDF »
-
Top 500+ Money & Banking Questions And Answers Test PDF »
-
New Banking & Money Supply Questions And Answers Test PDF »
-
Top 500+ Money Supply Trends & Developments MCQ For IBPS »
-
Top 500+ Banking & Financial Institutions GK MCQ Test PDF »
The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq
- Foreign Portfolio investments are more volatile than FDI
- FDI investors can easily sell their holdings and quit the market
- Foreign Portfolio investment is sector-specific
- FDI investment in general targets the capital market
(a) (i) & (iii) only
(b) (iii) & (iv) only
(c) (i) only
(d) (iv) only
The correct answers to the above question in:
Answer: (c)
FDI FPI/FII 1 It is only in equity/shares/ownership It is both in equity and debt (loan) 2 It is through primary market Generally, through the secondary market but can happen through primary market 3 Generally new shares are issued and the new capital (money) comes to the company through which the company invests in the new factory, machines etc.
Generally, only the owners change hands and new capital does not come to the company 4 The foreign investors purchase large shareholding and appoints Board of Directors and get involved in the decision making (active management) of the company Foreign investors generally purchase small shareholdings and do not get involved in the management of the company 5 Foreign investors try to make the company profitable through their decision making and target the profit of the company Foreign investors target the share price of the company and derive their gain from rising of share prices 6 It is sector-specific.
For example, a steel company in the US will invest only in a steel company in India and try to make that company profitable through their management and decision making and get a share of the profit It is in the general capital market.
For example, a foreign investor is not particular about any company/ sector in India and is willing to invest in any company which gives a chance of share price appreciation 7 It is a long-term investment as to turn the company profitable, the foreign investor needs to get invested for a long time.
It is generally short-term investment 8 Generally, the government specify a lock-in period and during this period the foreign investor cannot sell his investment and hence it is quite stable There is no lock-in period and the foreign investor can return any time by selling his investment. This makes the currency volatile
Practice Money Supply, Banking and Financial Institutions (money supply, banking & financial institutions section 11) Online Quiz
Discuss Form
Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
Enforcement Directorate enforces which of the following laws:
- Foreign Exchange Management Act (FEMA) Act 1999
- Prevention of Money Laundering Act (PMLA) 2002
a) (ii) only
b) Both (i) & (i)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (b)
Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India, which enforces the following laws: -
Foreign Exchange Management Act,1999 (FEMA) - A Civil Law, with officers empowered to conduct investigations into suspected contraventions of the Foreign Exchange Laws and Regulations, adjudicate and impose penalties on those adjudged to have contravened the law.
Prevention of Money Laundering Act, 2002 (PMLA) - A Criminal Law, with the officers empowered to conduct investigations to trace assets derived out of the proceeds of crime, to provisionally attach/ confiscate the same, and to arrest and prosecute the offenders found to be involved in Money Laundering.
Question : 2
When the Reserve Bank of India was established?
a) 1930
b) 1940
c) 1935
d) 1920
Answer »Answer: (c)
Question : 3
Land Development Bank provides loan to farmers for
a) medium term
b) only for land improvement
c) long term
d) short term
Answer »Answer: (c)
Question : 4
Under flexible exchange rate system, the exchange rate is determined by
a) the price of gold
b) the purchasing power of currencies
c) the Central Bank of the country
d) the forces of demand and supply in the foreign exchange market
Answer »Answer: (d)
A floating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market.
It refers to a country's exchange rate regime where its currency is set by the foreign exchange market through supply and demand for that particular currency relative to other currencies.
Question : 5
Which of the following would best describe the role of a merchant bank?
a) To monitor the activities of publicly-list companies
b) To provide borrowing and leading services, primarily to the business sector
c) To act as banker and financial agent to the federal government
d) To provide loans to the corporate sector through receipts of insurance premiums
Answer »Answer: (b)
Question : 6
Assertion (A):
Devaluation of a currency may promote export.
Reason (R):
The price of the country’s products in the international market may fall due to devaluation.
In the context of the above two statements, select the correct answer from the codes given below.
a) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
b) (A) is false, but (R) is true
c) (A) is true, but (R) is false
d) Both (A) and (R) are true and (R) is the correct explanation of (A)
Answer »Answer: (d)
GET Money Supply, Banking and Financial Institutions PRACTICE TEST EXERCISES
money supply, banking & financial institutions section 1
money supply, banking & financial institutions section 2
money supply, banking & financial institutions section 3
money supply, banking & financial institutions section 4
money supply, banking & financial institutions section 5
money supply, banking & financial institutions section 6
money supply, banking & financial institutions section 7
money supply, banking & financial institutions section 8
money supply, banking & financial institutions section 9
money supply, banking & financial institutions section 10
money supply, banking & financial institutions section 11
money supply, banking & financial institutions section 12
Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »