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

Question : 1

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

a) (ii) & (iii) only

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

c) (i) & (ii) only

d) All of the above

Question : 2

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

Question : 3

Consider the following statements. Full convertibility of the rupee may mean

1. Its free float with any of the international currencies.
2. Its direct exchange with any other international currency at any prescribed place inside and outside the country.
3. It acts just like any other international currency.

a) 1 and 3

b) 1, 2 and 3

c) 2 and 3

d) 1 and 2

Question : 4

The purpose of devaluation is to :

a) discourage exports

b) encourage import

c) be little foreign currencies

d) encourage exports

Question : 5

_______ 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

a) 2 only

b) 1 only

c) 3 only

d) 4 only

Question : 6

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)

a) 3 and 4

b) 1 and 2

c) 1, 3, 4

d) 1, 2, 3, 4