money supply, banking & financial institutions section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

Answer: (d)

The IBC Code 2016 covers solvency of Individuals/personal, Corporate Debtors, Proprietorship, Partnership firms and Limited Liability Partnership (LLPs) firms.

But the provisions of the IBC Code are being implemented/notified in a phased manner and till now only Corporate Debtors have been notified under IBC.

Personal insolvencies, Proprietorship (one-man company) and partnership firms (which are not "limited") and LLPs will be done soon.

Answer: (d)

Answer: (a)

Advance tax payment means paying a part of the yearly taxes in advance to the government. This reduces liquidity in the economy because the money moves from public to government. (the logic is money with the government is not part of the money supply in the economy)

In the case of GST, the government credits/gives back the taxes paid on inputs, to the suppliers which increase liquidity in the economy. Front loading of government expenditure means the government is spending its yearly targeted expenditure in the starting months rather than in the year-end. This increases liquidity in the economy.

Recapitalization of public sector banks means the government is putting money in public sector banks which increases the lending capacity of the banks resulting in an increase in money supply and liquidity.

Answer: (c)

There are four commodity exchanges working in the country. They are

1. NMCE (National Multi Commodity Exchange) - the oldest commodity exchange in the country which became operational in 2002,
2. MCX (Multi Commodity Exchange),
3. NCDEX (National Commodity and Derivatives Exchange) and
4. ICEX (Indian Commodity Exchange).