money supply, banking & financial institutions section 10 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11 [UPPCS (Mains) 2010]

In India, regional rural banks were established in the year

a) 1975

b) 1982

c) 1980

d) 1976

Question : 12

With reference to inflation in India, which of the following statements is correct?

a) The Reserve Bank of India has no role in controlling the inflation

b) Controlling the inflation in India is the responsibility of the Government of India only

c) Decreased money circulation helps in controlling the inflation

d) Increased money circulation helps in controlling the inflation

Question : 13

Which of the following are part of Monetary Base of an economy?

1. Currency notes and coins with the public
2. Vault cash of commercial banks
3. Deposits of commercial banks with RBI
4. Deposits of Government of India with RBI

a) (i) & (ii) only

b) (iii) & (iv) only

c) (i) only

d) All of the above

Question : 14 [HCS (Pre) 2014]

Credit creation power of the commercial banks gets limited by which of the following?

a) Cash reserve ratio

b) All of the above

c) Credit policy of the central bank

d) Banking habits of the people

Question : 15

Consider the following statements regarding the ‘Supervisory Action Framework’:

1. It is applicable for UrbanCooperative banks
2. It can be initiated in case of serious governance issues

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)