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

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The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq

Questions : The purpose of devaluation is to :

(a) discourage exports

(b) encourage import

(c) be little foreign currencies

(d) encourage exports

The correct answers to the above question in:

Answer: (d)

Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged. It makes exports more competitive and imports more expensive.

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Read more money and supply banking financial institutions Based Indian Economy Questions and Answers

Question : 1

Choose the type of capital market:

  1. Securities Market
  2. Financial institutions
  3. Gill-edged market
  4. Incorporated securities
Which among the following code is correct?

a) 1 and 3

b) 1 and 4

c) 1 and 2

d) 3 and 4

Answer: (c)

The securities market is further divided into the giltedged market and the corporate securities market.

Question : 2

Foreign Direct Investment (FDI) in India can happen by which of the following ways:

  1. Subsidiary
  2. Joint Venture
  3. Acquisition of shares
  4. Purchase of government securities
Select the correct answer using the code given below:

a) (ii) & (iii) only

b) (i), (ii) & (iii) only

c) (i) & (ii) only

d) All of the above

Answer: (b)

Foreign Direct Investment (FDI) happens in three ways: -

  1. A foreign company purchasing shares of an Indian company
  2. A foreign company in collaboration with an Indian company establishing a new company called Joint Venture Company in India
  3. A foreign company establishing a subsidiary or a child company in India

Question : 3

The first public sector bank in India which obtained license for Internet Banking from RBI is-

a) Punjab National Bank

b) Corporation Bank

c) Oriental Bank of Commerce

d) State Bank of India

Answer: (a)

Question : 4

_______ deals with long-term finance (more than 365 days) funds. It includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term).

  1. Capital market
  2. Stock market
  3. Debit
  4. Credit
Choose the correct answer.

a) 2 only

b) 1 only

c) 3 only

d) 4 only

Answer: (b)

Capital market deals with long-term finance (more than 365 days) funds.

It includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term).

Question : 5

Name of four institutions that are regulated by the RBI as all-India FIs:

  1. Export Import Bank of India (EXIM Bank)
  2. National Bank for Agriculture and Rural Development (NABARD)
  3. National Housing Bank (NHB)
  4. Small Industries Development Bank of India (SIDBI)
Choose the correct answer.

a) 3 and 4

b) 1 and 2

c) 1, 3, 4

d) 1, 2, 3, 4

Answer: (d)

According to the Economic Survey, there are four Institutions, namely the Export Import Bank of India (EXIM Bank), National Bank for Agriculture and Rural Development (NABARD), the National Housing Bank (NHB) and Small Industries Development Bank of India (SIDBI).

Question : 6

Which one of the following links all the ATMs in India?

a) National Securities Depository Limited

b) Reserve Bank of India

c) National Payments Corporation of India

d) Indian Bank’s Association

Answer: (c)

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