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

Question : 1

Which one of the following is an example of optional money?

a) Cheque

b) Bond

c) Currency note

d) Coins

Question : 2

An increase in the Bank Rate generally indicates that the :

a) market rate of interest is likely to fall

b) Central Bank is following an easy money policy

c) Central Bank is no longer making loans to commercial banks

d) Central Bank is following a tight money policy

Question : 3

Consider the following:

1. Commercial Banks
2. Central Bank of India
3. Government

a) Only 1 & 2

b) Only 1

c) Only 3

d) All 1 2 & 3

Question : 4

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 : 5

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 : 6

Choose the type of capital market:

1. Securities Market
2. Financial institutions
3. Gill-edged market
4. Incorporated securities

a) 1 and 3

b) 1 and 4

c) 1 and 2

d) 3 and 4