money supply, banking & financial institutions section 2 Practice Questions Answers Test with Solutions & More Shortcuts
Money Supply, Banking and Financial Institutions PRACTICE TEST [12 - 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
Question : 16
RBI acts as a 'lender of last resort' to ensure the following in the economy:
- To prevent possible failure of the banks
- To protect the interest of the depositors of the banks
- To ensure financial stability in the economy
a) (i) & (ii) only
b) (i) & (iii) only
c) (i) only
d) All of the above
Answer »Answer: (d)
RBI comes to the rescue of a bank that is solvent (has not gone bankrupt) but faces temporary liquidity (funds) problems by supplying it with much-needed liquidity when no one else is willing to extend credit to that bank.
RBI extends this facility to protect the interest of the depositors of the bank and to prevent possible failure of a bank, which in turn may also affect other banks and institutions and can have an adverse impact on financial stability and thus on the economy.
Question : 17
List I | List II |
A. Depression | 1. Coexistence of inflation and stagnation |
B. Recession | 2. Recovery from depression |
C. Reflation | 3. Reduction in production over a short period |
D. Stagflation | 4. Insufficient demand leading to idle men and machinery over a long time |
5. Reduction in level of the economy due to falling prices |
a) A-4; B-3; C-2; D-5
b) A-1; B-2; C-3; D-5
c) A-4; B-3; C-2; D-1
d) A-3; B-4; C-2; D-1
Answer »Answer: (a)
Recession is slow down in effective demand for goods and services, slow down in the economy implies a short-run decline in the growth rate.
Question : 18 [SSC CML 2006]
Regulated markets aim at the development of the marketing structure to
a) increase the non-functional margins of the traders
b) maximise the non-functional margins of the commission agents
c) widen the price spread between the producer and the consumer
d) narrow down the price spread between the producer and the consumer
Answer »Answer: (d)
Regulated markets aim at the development of marketing structures to ensure remunerative prices to the producers and to narrow down the price spread between the producer and the consumer.
It also aims at reducing the non-functional margins of the commission agents.
Question : 19 [UPSC (Pre) 2012]
The basic aim of Lead Bank Scheme is that
a) there should be stiff competition among the various nationalised banks
b) all the banks should make intensive efforts to mobile deposits
c) individual banks should adopt particular districts for intensive development
d) big banks should try to open offices in each district
Answer »Answer: (c)
Question : 20
Consider the following statements:
- As per the Banking Regulation Act 1949, RBI, in the public interest, can supersede the management of a banking company.
- As per the RBI Act 1934, RBI, in the public interest can supersede the management of a non-banking financial company
a) (ii) only
b) Both (i) & (ii)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (b)
As per the Banking Regulation Act 1949 (Section 36), RBI, in the public interest, can supersede the Board of Directors (management) of a banking company. This is generally done if there is mismanagement in the bank or it is on the verge of default.
As per RBI Act 1934, RBI, in the public interest, can supersede the Board of Directors (management) of a non-banking financial company. (RBI can supersede a bank’s board through Banking Regulation Act 1949, but NBFCs are not covered in that Act.
So, an amendment was done to RBI Act 1934 in July 2019, to allow RBI to supersede the board of NBFCs, in the wake of the crisis faced by various NBFCs like DHFL, IL&FS etc.)
IMPORTANT indian economy mcq 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 »
Money Supply, Banking and Financial Institutions Shortcuts »
Click to Read...money supply, banking & financial institutions section 2 Online Quiz
Click to Start..Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
indian economy MCQ CATEGORIES
-
» Introduction to Indian Economy
-
» Planning, Economic Development & Five year Plans
-
» National Income & Human Development Index
-
» Agriculture Sector, Subsidy and Food Processing
-
» Industries, Manufacturing & Service Sectors
-
» Inclusive growth, Sustainable development and employment
-
» Poverty & Unemployment
-
» Introduction to Micro Economics
-
» Introduction to Macro Economics
-
» Macro fundamentals, GDP, Investment, Growth
-
» Demand & Supply, Profit Loss, Inflation & Price Index
-
» Fiscal Policy, Public Finance and Monetary Policy
-
» Money Supply, Banking and Financial Institutions
-
» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
RECENT BLOGS
Recently Added Subject & Categories For All Competitive Exams
Most Important Antonyms Vocabulary - IBPS Clerk Prelims 2024
Latest Antonyms multiple choice questions and answers with free PDFfor IBPS Clerk Prelims 2024. English Vocabulary practice exercise for all bank exam
Continue Reading »
Syllogism Practice Questions Answers PDF - IBPS Clerk 2024
Practice Verbal Reasoning Syllogism multiple choice questions and answers with Fully solved explanation, PDF for the IBPS Clerk Prelims 2024 Bank Exam
Continue Reading »
IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers
Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download
Continue Reading »
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »