money supply, banking & financial institutions section 12 MCQ Questions & Answers Detailed Explanation

Question : 1

‘Money’ is an example of

a) Concrete capital

b) Social capital

c) Sunk capital

d) Floating capital

Question : 2

Which of the following is not true of the Regional Rural Banks (RRBs)?

a) They provide direct loans to small and marginal farmers;

b) They also perform other banking operations;

c) They are co-sponsored by Reserve Bank of India;

d) State Governments are share-holders in RRBs.

Question : 3

When was the first Regional Rural Bank formed?

a) 1976

b) 1975

c) 1974

d) 1977

Question : 4

Consider the following statements:

1. Foreign Direct Investment in India has steadily increased in the last 5 years
2. Foreign Portfolio Investment in India has steadily increased in the last 5 years

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 5

Consider the following statements regarding “Commercial Papers”:

1. It is an unsecured debt instrument
2. It is a short-term money market instrument
3. NBFCs issue commercial papers

a) (ii) & (iii) only

b) (ii) only

c) (i) only

d) All of the above

Question : 6

Surplus liquidity in the economy may result in which of the following:

1. Softening of bond yield
2. Reduction in cost of capital
3. Depreciation of currency

a) (i) & (iii) only

b) (ii) & (iii) only

c) (ii) only

d) All of the above