money supply, banking & financial institutions section 3 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 : 26 [SSC CPO 2007]
Cheap money means
a) Low level of income
b) Low level of standard of living
c) Low rates of interest
d) Low level of saving
Answer »Answer: (c)
Cheap money is a loan or credit with a low interest rate, or the setting of low-interest rates by a central bank like the Federal Reserve.
Cheap money is good for borrowers, but bad for investors, who will see the same low-interest rates on investments like savings accounts, money market funds, CDs and bonds.
Cheap money can have detrimental economic consequences as borrowers take on excessive leverage.
Question : 27
Which of the following are part of capital account transactions?
- Masala bonds
- Purchase of capital equipment from abroad
- NRI deposits in Indian banks
a) (i) & (ii) only
b) (iii) only
c) (i) only
d) (i) & (iii) only
Answer »Answer: (d)
Masala bonds are issued outside India and money is raised in foreign currency, so it is part of our capital account.
When NRIs are depositing money in Indian banks then it’s a transaction between Indian residents (banks) and non-resident Indians and it creates a liability on Indian banks for the future, hence it’s a capital receipt.
Import of capital equipment is part of the current account.
Question : 28
Which of the following statements is not correct regarding the ‘Banking Sector’ of India?
a) At present there are 26 Nationalized Banks in India.
b) Banks have the freedom to regulate their own Savings Bank Deposit interest rates.
c) Foreign Banks and Regional Rural Banks do not come under the category of Scheduled Commercial Banks.
d) Narsimham Committee is related to Banking Sector reforms.
Answer »Answer: (c)
Foreign Banks and Regional Rural Banks also come under the category of Scheduled Commercial Banks. Now, the banks are free to determine their savings bank deposit interest rate, subject to the following two conditions:
1. Each bank will have to offer a uniform interest rate on savings bank deposits up to ` 1 lakh,irrespective of the amount in the account within this limit.
2. For savings bank deposits over ` 1 lakh, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.
Question : 30
Brent index is associated with :
- crude oil prices
- copper future prices
- gold future prices
- shipping rate index
a) Only 2
b) Only 1
c) Only 3
d) Only 4
Answer »Answer: (b)
Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. Brent Crude is extracted from the North Sea and comprises Brent Blend, Forties Blend, Oseberg and Ekofisk crudes.
The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum. The index represents the average price of trading in the 25 days Brent Blend, the Forties, Oseberg, Ekofisk (BFOE) market in the relevant delivery month as reported and confirmed by the industry media.
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 3 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
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »