Money Supply, Banking & Financial Institutions Section 10 Practice Questions Answers Test With Solutions & More Shortcuts

Question : 1

Consider the following statements:

1. As per the Basel II accords, Banks have to maintain a minimum 8% CRAR
2. Out of 8% Banks have to keep a Tier I Capital of 5%
3. In India, the Banks are required to keep the CAR of 9% at least.

a) Only 1 & 2

b) Only 1

c) Only 1 & 3

d) All are correct statements

Question : 2

If the US Central Bank raises their interest rate then it may lead to which of the following in the Indian economy:

a) Rupee appreciation

b) Investors moving to India

c) Rupee depreciation

d) Increase in money supply

Question : 3

Which of the following are among the taxes levied exclusively by the Central Government and are mentioned in the Union List of the Seventh Schedule of the Constitution of India?

1. Corporation Tax
2. Taxes on advertisement in the newspapers
3. Taxes on Agricultural income
4. Taxes on consumption/sale of electricity

a) Only 4

b) Only 2

c) 1 and 2

d) 3 and 4

Question : 4 [SSC CGL 2016]

MUDRA Bank has been launched to help

a) Poor women

b) Rural sector

c) Small business

d) Marginal farmers

Question : 5 [UPPCS (Pre) 1995]

Indian rupee had been made fully convertible on

a) current account in August, 1994

b) current account in April, 1995

c) capital account in August, 1994

d) current account on March 1, 1993