money supply, banking & financial institutions section 6 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11

What are the authorities of SEBI?

1. Oversee the working of stock exchanges
2. Regulate merchant banks and mutual funds
3. Register and regulate intermediaries such as stock brokers

a) 2 only

b) 1 only

c) 3 only

d) None of the Above

Question : 12 [UPSC (Pre) 2010]

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?

a) Debt Service Obligation

b) Statutory Liquidity Ratio

c) Liquidity Adjustment Facility

d) Cash Credit Ratio

Question : 13

The Real Rate of Interest is equal to the Nominal Interest Rate minus inflation. Consider the following statements:

1. Real Interest Rate must be positive to encourage savings and reduce consumption
2. Real Interest Rate must be negative to encourage savings and reduce consumption
3. Real interest rate is always positive
4. Inflation rate in the market may be negative

a) (iii) only

b) (i) & (iii) only

c) (i) only

d) (i) & (iv) only

Question : 14 [UPPCS (Pre) 1998]

Provident Fund in India is

a) Residual Savings

b) Employer’s Savings

c) Voluntary Savings

d) Contractual Savings

Question : 15

Who is the final authority in approving the design, form and material of bank notes:

a) Central Board of RBI

b) Central Government

c) Governor of RBI

d) Governor of RBI in consultation with Central Government