money supply, banking & financial institutions section 12 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 12 EXERCISES
-
500+ Banking & Money Supply GK MCQ Quiz PDF For IBPS Exam »
-
Top 500+ Indian Financial System GK MCQ Live Quiz For SSC »
-
Top 500+ Money Supply & Banking Functions GK MCQ Quiz PDF »
-
New Banking & Financial Institutions GK MCQ Quiz For RRB »
-
Top 500+ Money Supply Methods & Concepts GK MCQ For UPSC »
-
Banking & Financial Institutions Features GK MCQ Quiz PDF »
-
New 500+ Money Supply Concepts Types Formulas GK MCQ Quiz »
-
499+ Indian Monetary Aggregates & Money Supply GK MCQ PDF »
-
Top 500+ Money & Banking Questions And Answers Test PDF »
-
New Banking & Money Supply Questions And Answers Test PDF »
-
Top 500+ Money Supply Trends & Developments MCQ For IBPS »
-
Top 500+ Banking & Financial Institutions GK MCQ Test PDF »
The following question based on Money Supply, Banking and Financial Institutions topic of indian economy mcq
(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.
The correct answers to the above question in:
Answer: (c)
Practice Money Supply, Banking and Financial Institutions (money supply, banking & financial institutions section 12) Online Quiz
Discuss Form
Read more money and supply banking financial institutions Based Indian Economy Questions and Answers
Question : 1
When was the first Regional Rural Bank formed?
a) 1976
b) 1975
c) 1974
d) 1977
Answer »Answer: (b)
Question : 2
In the year 2018-19, RBI transferred a much higher amount (Rs. 1.76 lakh cr) to the government of India. Which of the following are the sources of this higher fund?
- Transfer from Contingency Fund
- Transfer from Asset Development Fund of RBI
- Income as a result of higher open market operations
a) (i) & (iii) only
b) (ii) & (iii) only
c) (i) only
d) All of the above
Answer »Answer: (a)
In 2018-19, to increase liquidity in the economy, RBI purchased a lot of Govt. bonds (open market operations), on which it earned interest income, resulting in income (including from other sources) of Rs. 1.23 lakh crore. Rs. 53,000 crores were transferred from the ‘Contingency Fund’ to RBI’s income.
This resulted in total income and then a transfer of Rs. 1.76 lakh crore in 2018-19 from RBI to Govt.
RBI’s surplus/excess capital (a pie of which the government was trying to extract) consists of two distinct types of items:
Contingency Fund:
It is meant for meeting unexpected and unforeseen contingencies, including depreciation in the value of securities, risks arising out of monetary/exchange rate policy operations, systemic risks and any risk arising on account of the special responsibilities given to RBI.
[Based on the recommendations of the Jalan Committee, the excess risk provision amounting to Rs. 53,000 crores were written back from Contingency Fund to RBI’s income.
As per the Annual Report of RBI 2018-19, RBI’s income was Rs. 1.76 lakh crore in 2018- 19, out of which Rs. 53,000 crore was because of transfer from Contingency Fund and rest Rs. 1.23 lakh crore was regular income.
This regular income in 2018-19 was also quite high as compared to the previous year’s income of Rs. 60,000 cr to Rs. 70,000 crores because of RBI’s open market operations where RBI purchased government securities from the market to pump liquidity in the economy. Holding cash does not give any income to RBI but the holding of government securities gives RBI interest income.]
Asset Development Fund:
It is meant for investments in subsidiaries and associate institutions and meets internal capital expenditure.
In 2018-19, Rs. 64 crore provision was made towards the Asset Development Fund on account of new investments in the National Centre for Financial Education (NCFE) and Indian Financial Technology and Allied Services (IFTAS).
Question : 3
Consider the following:
- Change in the Reserve Requirements
- Taxation
- Government Spending
a) Only 2 & 3
b) Only 1 & 2
c) Only 1
d) Only 1 & 3
Answer »Answer: (a)
Question : 4
‘Money’ is an example of
a) Concrete capital
b) Social capital
c) Sunk capital
d) Floating capital
Answer »Answer: (d)
Money is something which is widely accepted in payment for goods and services and in setting debts. Money is an example of Floating Capital.
Question : 5
Bank Rate refers to the interest rate at which
a) Government loans are floated
b) Commercial banks grant loans to their customers
c) Commercial banks receive deposits from the public
d) Central bank gives loans to Commercial banks
Answer »Answer: (d)
Bank rate is the interest rate at which a nation’s central bank lends money to domestic banks. Often these loans are very short in duration.
Question : 6
Consider the following statements:
- Foreign Direct Investment in India has steadily increased in the last 5 years
- 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)
Answer »Answer: (d)
Refer the trends
GET Money Supply, Banking and Financial Institutions PRACTICE TEST EXERCISES
money supply, banking & financial institutions section 1
money supply, banking & financial institutions section 2
money supply, banking & financial institutions section 3
money supply, banking & financial institutions section 4
money supply, banking & financial institutions section 5
money supply, banking & financial institutions section 6
money supply, banking & financial institutions section 7
money supply, banking & financial institutions section 8
money supply, banking & financial institutions section 9
money supply, banking & financial institutions section 10
money supply, banking & financial institutions section 11
money supply, banking & financial institutions section 12
Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »