money supply, banking & financial institutions section 8 Practice Questions Answers Test with Solutions & More Shortcuts
Money Supply, Banking and Financial Institutions PRACTICE TEST [12 - EXERCISES]
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Question : 36
Consider the following statements.
- The National Housing Bank, the apex institution of housing finance in India, was set up as a whollyowned subsidiary of the Reserve Bank of India.
- The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.
a) 2 only
b) 1 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer »Answer: (c)
Question : 37
Which of the following statements will be considered as part of ‘Transfer Payments’ in the balance of payment?
- Gift sent by an NRI to his friend in India
- Money sent by an Indian employee to his family in India who has gone abroad temporarily
a) (ii) only
b) Both (i) & (ii)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (c)
BoP is basically transactions of the residents of the country with the rest of the world. And transfer payments mean anything given for free.
In the (i) statement, the transaction between Indian residents and Non-Resident Indians (NRI) is for free, without any work done or consideration. So, it is a case of transfer payment and will be recorded in BoP.
In the (ii) statement, the transaction is between an Indian resident (who has gone abroad temporarily) and his family in India. Both are Indian residents, so, this transaction will not be recorded in BoP.
Question : 40
Which of the following agencies conducts ‘inflation expectation survey’ of households in India?
a) National Statistical Office
b) Reserve Bank of India
c) Ministry of Statistics and Programme Implementation
d) Ministry of Finance
Answer »Answer: (b)
RBI conducts quarterly 'inflation expectation survey' of households wherein RBI gauges the household’s expectation regarding inflation for the next one year. These surveys are used for monetary policy purpose.
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Money Supply, Banking and Financial Institutions Shortcuts »
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
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» Taxes Types, Methods & Budgeting Process
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» Banking, Security Market & Insurance
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