Money Supply, Banking & Financial Institutions Section 7 Practice Questions Answers Test With Solutions & More Shortcuts

Question : 6

Consider the following statements regarding Foreign Direct Investment (FDI):

1. FDI investment happens through the secondary market
2. FDI investment is about equity securities
3. FDI investment is about debt securities

a) (i) & (ii) only

b) (i) & (iii) only

c) (i) only

d) (ii) only

Question : 7 [SSC CGL 2011]

When there is an official change in the exchange rate of domestic currency, then it is called :

a) Revaluation

b) Deflation

c) Appreciation

d) Depreciation

Question : 8

What is the main cost-push factor in India?

1. Problem of hoarding by traders and black marketeers
2. Taxation which gives the traders an opportunity to raise the prices of goods, the proportion of which is often more than the levy of taxes
3. Administered Prices
4. Hike in Oil Prices

a) 1, 2, 3, 4

b) 1, 2, 3

c) 1, 2

d) None of the Above

Question : 9

Which among 1the following is considered to be a part of Shadow Banking in India?

a) Business Correspondents

b) Non-Banking Financial Companies

c) Bankassurance Providers

d) Private Banks

Question : 10

“Bad money (if not limited in quantity ) drives good money out of circulation.” The above statement is from which among the following laws?

a) Keynes’ law

b) Gresham’s law

c) Wagner’s law

d) Grimm’s law