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

Question : 41

What are the functions of RBI?

1. Issue of notes
2. Banker to the government
3. Controller of debit
4. Custodian of foreign reserves

a) 2 only

b) 1 only

c) 3 only

d) 4 only

Question : 42

NABARD provides refinance to which of the following types of financial institutions:

1. Commercial Banks
2. Regional Rural Banks
3. State Cooperative Banks & Land Development Banks
4. Non-Banking Financial Companies

a) (ii) & (iii) only

b) (i), (ii) & (iii) only

c) (ii) only

d) All of the above

Question : 43

Why is the offering of “teaser loans’’ by commercial banks a cause of economic concern ?

1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

a) 2 only

b) 1 only

c) Both 1 and 2

d) Neither 1 nor 2

Question : 44 [UPPCS (Pre) 1998]

Devaluation of currency means

a) permitting a currency to seek its worth in the international market

b) None of the above

c) fixing the value of currency with the help of IMF and WB

d) reduction in the value of the currency vis-a-vis major internationally traded currencies

Question : 45 [SSC CGL 2014]

Who benefits the most during the inflationary period ?

a) entrepreneurs

b) government servants

c) corporate servants

d) creditors