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
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money supply, banking & financial institutions section 12
Question : 21
Which of the following statements are true regarding Foreign Portfolio Investors (FPIs):
- They fund India’s Current Account Deficit (CAD)
- They help in achieving governments disinvestment target
- They are liable to pay capital gain tax in India
a) (ii) & (iii) only
b) (iii) only
c) (i) only
d) All of the above
Answer »Answer: (d)
FPI comes under capital account in Balance of Payment but they bring dollars/foreign currencies and this dollar is used to finance/fund if we have a deficit in the current account.
When the government is listing a PSU on the stock exchange for disinvestment, then FPIs can also purchase the PSU’s shares in the primary market. So, FPIs help in the government’s disinvestment plan.
FPI’s pay tax on the earnings they derive from a gain in shares/bonds prices called capital gain tax.
Question : 22
Which one of the following Public Sector Bank’s emblem figures a dog and the words ‘faithful friendly, in it?
a) Punjab National Bank
b) Oriental Bank of Commerce
c) Syndicate Bank
d) State Bank of India
Answer »Answer: (c)
Syndicate Bank. The symbol of dog implies that Bank is trustworthy and a friend. Its slogan is : Your faithful and friendly financial partner.
IMPORTANT indian economy mcq EXERCISES
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Money Supply, Banking and Financial Institutions Shortcuts »
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
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» Taxes Types, Methods & Budgeting Process
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» Banking, Security Market & Insurance
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