money supply, banking & financial institutions section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16

RBI acts as a 'lender of last resort' to ensure the following in the economy:

1. To prevent possible failure of the banks
2. To protect the interest of the depositors of the banks
3. To ensure financial stability in the economy

a) (i) & (ii) only

b) (i) & (iii) only

c) (i) only

d) All of the above

Question : 17

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

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

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

Question : 20

Consider the following statements:

1. As per the Banking Regulation Act 1949, RBI, in the public interest, can supersede the management of a banking company.
2. 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)