money supply, banking & financial institutions section 11 MCQ Questions & Answers Detailed Explanation

Question : 1

Legal Tender Money is

a) not accepted for business purposes by law

b) not accepted by Government

c) accepted only by Government

d) accepted by people and Government as per the law

Question : 2

Consider the following statements regarding ‘Agency Banks’ of RBI:

1. RBI Act 1934 allows it to appoint agency banks
2. Public sector and private sector banks both can act as agency banks

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 3

International capital flows have been uncertain and volatile, causing exchange rate and balance of payment crisis among developing countries. Among the various sources of external capital available to India which source should you consider as the most preferable?

a) Foreign institutional investment

b) External commercial borrowing

c) Portfolio investment

d) Foreign direct investment

Question : 4

The most active segment of the Money Market in India is which one of the following?

a) Call Money / Notice Money Market

b) Commercial Paper (CP)

c) Repo / Reverse Repo

d) Certificate of Deposit (CD)

Question : 5

Which among the following are the wholly/partly owned subsidiaries of the Reserve Bank of India (RBI)?

1. Deposit Insurance and Credit Guarantee Corporation (DICGC)
2. National Housing Bank (NHB)
3. National Bank for Agriculture and Rural Development (NABARD)
4. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)

a) 1, 2 and 4

b) 1 and 4

c) 2, 3 and 4

d) All of them

Question : 6

Coins are minted in India at

a) Delhi, Kolkata and Hyderabad

b) Mumbai, Kolkata and Hyderabad

c) Mumbai, Delhi and Bengaluru

d) Delhi, Mumbai and Kolkata