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

Question : 36 [BPSC (Pre) 2017]

The Bank rate is the rate at which

a) the RBI lends to the public

b) the Government of India lends to other countries

c) the RBI gives credit to the commercial banks

d) a bank lends to the public

Question : 37 [HCS (Pre) 2014]

Which among the following is not correct?

a) Floating exchange rate breeds uncertainties and speculation

b) The system of floating exchange rate requires comprehensive government intervention

c) Economic and political factors and value judgments influence the choice of the exchange rate system

d) Floating exchange rate system works on market mechanism

Question : 38

Consider the following statements regarding NonBanking Finance Companies (NBFCs):

1. NBFCs can also engage in Micro-Finance Activities.
2. Housing-finance companies form a distinct subgroup of the NBFCs.
3. The deposit insurance facility of the Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors.

a) 1 and 3

b) Only 1

c) All of there

d) None of these

Question : 39

Bank rate refers to:

a) the rate at which banks lend to its prime borrowers

b) the rate at which banks rediscount bills with RBI

c) the maximum rate that banks can pay for deposit

d) the rate of interest charged on inter-bank transactions

Question : 40 [UPPCS 2014]

Rural Infrastructure Development Fund is being financed by

a) Reserve Bank of India

b) Selected group of Public Sector Banks

c) Ministry of Rural Development

d) NABARD