money supply, banking & financial institutions section 7 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11

Consider the following statements:

1. Non-Performing Assets of scheduled commercial banks is more than non-banking financial companies
2. Presently, the Capital Adequacy Ratio of scheduled commercial banks is around 15%

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 12

Recently, one of the well known market analysts made this statement: “We expect the Reserve Bank of India to continue to ease liquidity” Which among the following instruments can be used by RBI to continue to ease liquidity?

1. Cutting the frequency of Open Market Operations
2. Cutting the Cash Reserve Ratio
3. Cutting the Repo and Reverse Repo rates

a) Only 1 & 2

b) Only 1

c) Only 2 & 3

d) 1, 2 & 3

Question : 13 [SSC CHSL 2014]

The terms ‘Bull’ and ‘Bear’ are associated with

a) Stock Market

b) Internet Trade

c) Banking

d) Foreign Trade

Question : 14 [UPSC (Pre) 2018]

Consider the following statements.

1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur, if the accountholders fail to repay dues.
2. CAR is decided by each individual bank.

a) Only 2

b) Neither 1 nor 2

c) Both 1 and 2

d) Only 1

Question : 15

Consider the following statements regarding "Sovereign Wealth Funds (SWFs)":

1. SWFs are State-owned investment funds
2. SWFs are established through fiscal and trade surpluses
3. They are used to stabilize the budget and economy of the country from excess volatility in revenues
4. SWFs typically invests in government-owned projects/assets

a) (ii) & (iii) only

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

c) (i) & (iv) only

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