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

Question : 41

Which of the following is not a function of the Securities and Exchange Board of India (SEBI)?

a) Supervising the working of the Stock Exchanges

b) Regulating merchant banks and mutual funds

c) Underwriting new capital issues

d) promoting the development of a healthy capital market

Question : 42

The _____ is the total amount of monetary assets available in an economy at a specific time.

1. Money Supply
2. Money Stock
3. Money Demand
4. Stock in Demand

a) 3 and 4

b) 1 and 2

c) 1 and 3

d) 2 and 4

Question : 43

Which of the following statements are true in case "the currency of two countries are at purchasing power parity":

a) PPP exchange rate is equal to Real exchange rate

b) Nominal exchange rate is equal to Real exchange rate

c) PPP exchange rate is equal to Nominal exchange rate

d) PPP, Nominal and Real exchange rates become equal

Question : 44 [UPSC (Pre) 2003]

Consider the following statements.

1. The National Housing Bank (NHB), the apex institution of housing finance in India was set-up as a wholly-owned subsidiary of the Reserve Bank of India.
2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1

Question : 45

Which agency has the authority to declare that certain bank notes cease to be legal tender:

a) RBI Central Board

b) Central Government

c) RBI governor

d) Central Government on the recommendation of RBI Central Board