money supply, banking & financial institutions section 8 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 31

In the context of the Indian economy, which of the following is/are the purpose/purposes of “Statutory Reserve Requirements”?

1. To enable the Central Bank to control the number of advances the banks can create
2. To make the people’s deposits with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

a) (i) & (ii) only

b) (ii) & (iii) only

c) (i) only

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

Question : 32

Consider the following statement:

1. EXIM bank in India was established on January 1, 1982
2. National Housing Bank was established in July, 1988.
3. SIDBI started its operations from April 2, 1990.

a) 2 only

b) 1 only

c) 3 only

d) 1, 2, 3

Question : 33

Which among the following is not an instrument of qualitative control in India ?

a) Regulation of the Consumer Credit

b) Margin Requirements

c) Rationing of the Credit

d) Variable Costs and Reserves

Question : 34 [MPPCS (Pre) 2016]

The largest commercial bank of India is

a) State Bank of India

b) Union Bank of India

c) ICICI

d) NABARD

Question : 35

Demand management to control inflation may lead to:

a) increase in government expenditure

b) expansion of credit

c) increase in unemployment due to contraction of the economy

d) creation of excess liquidity