money supply, banking & financial institutions section 11 Practice Questions Answers Test with Solutions & More Shortcuts
Money Supply, Banking and Financial Institutions PRACTICE TEST [12 - EXERCISES]
money supply, banking & financial institutions section 1
money supply, banking & financial institutions section 2
money supply, banking & financial institutions section 3
money supply, banking & financial institutions section 4
money supply, banking & financial institutions section 5
money supply, banking & financial institutions section 6
money supply, banking & financial institutions section 7
money supply, banking & financial institutions section 8
money supply, banking & financial institutions section 9
money supply, banking & financial institutions section 10
money supply, banking & financial institutions section 11
money supply, banking & financial institutions section 12
Question : 6
Consider the following statements:
- Foreign Portfolio investments are more volatile than FDI
- FDI investors can easily sell their holdings and quit the market
- Foreign Portfolio investment is sector-specific
- FDI investment in general targets the capital market
a) (i) & (iii) only
b) (iii) & (iv) only
c) (i) only
d) (iv) only
Answer »Answer: (c)
FDI FPI/FII 1 It is only in equity/shares/ownership It is both in equity and debt (loan) 2 It is through primary market Generally, through the secondary market but can happen through primary market 3 Generally new shares are issued and the new capital (money) comes to the company through which the company invests in the new factory, machines etc.
Generally, only the owners change hands and new capital does not come to the company 4 The foreign investors purchase large shareholding and appoints Board of Directors and get involved in the decision making (active management) of the company Foreign investors generally purchase small shareholdings and do not get involved in the management of the company 5 Foreign investors try to make the company profitable through their decision making and target the profit of the company Foreign investors target the share price of the company and derive their gain from rising of share prices 6 It is sector-specific.
For example, a steel company in the US will invest only in a steel company in India and try to make that company profitable through their management and decision making and get a share of the profit It is in the general capital market.
For example, a foreign investor is not particular about any company/ sector in India and is willing to invest in any company which gives a chance of share price appreciation 7 It is a long-term investment as to turn the company profitable, the foreign investor needs to get invested for a long time.
It is generally short-term investment 8 Generally, the government specify a lock-in period and during this period the foreign investor cannot sell his investment and hence it is quite stable There is no lock-in period and the foreign investor can return any time by selling his investment. This makes the currency volatile
Question : 7
Enforcement Directorate enforces which of the following laws:
- Foreign Exchange Management Act (FEMA) Act 1999
- Prevention of Money Laundering Act (PMLA) 2002
a) (ii) only
b) Both (i) & (i)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (b)
Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India, which enforces the following laws: -
Foreign Exchange Management Act,1999 (FEMA) - A Civil Law, with officers empowered to conduct investigations into suspected contraventions of the Foreign Exchange Laws and Regulations, adjudicate and impose penalties on those adjudged to have contravened the law.
Prevention of Money Laundering Act, 2002 (PMLA) - A Criminal Law, with the officers empowered to conduct investigations to trace assets derived out of the proceeds of crime, to provisionally attach/ confiscate the same, and to arrest and prosecute the offenders found to be involved in Money Laundering.
Question : 10 [UPSC (Pre) 2013]
Consider the following liquid assets.
- Demand deposits with the banks
- Time deposits with banks
- Savings deposits with banks
- Currency
a) 4, 3, 2, 1
b) 4, 1, 3, 2
c) 2, 3, 1, 4
d) 1, 4, 3, 2
Answer »Answer: (b)
IMPORTANT indian economy mcq EXERCISES
-
500+ Banking & Money Supply GK MCQ Quiz PDF For IBPS Exam »
-
Top 500+ Indian Financial System GK MCQ Live Quiz For SSC »
-
Top 500+ Money Supply & Banking Functions GK MCQ Quiz PDF »
-
New Banking & Financial Institutions GK MCQ Quiz For RRB »
-
Top 500+ Money Supply Methods & Concepts GK MCQ For UPSC »
-
Banking & Financial Institutions Features GK MCQ Quiz PDF »
-
New 500+ Money Supply Concepts Types Formulas GK MCQ Quiz »
-
499+ Indian Monetary Aggregates & Money Supply GK MCQ PDF »
-
Top 500+ Money & Banking Questions And Answers Test PDF »
-
New Banking & Money Supply Questions And Answers Test PDF »
-
Top 500+ Money Supply Trends & Developments MCQ For IBPS »
-
Top 500+ Banking & Financial Institutions GK MCQ Test PDF »
Money Supply, Banking and Financial Institutions Shortcuts »
Click to Read...money supply, banking & financial institutions section 11 Online Quiz
Click to Start..Money Supply, Banking and Financial Institutions Shortcuts and Techniques with Examples
indian economy MCQ CATEGORIES
-
» Introduction to Indian Economy
-
» Planning, Economic Development & Five year Plans
-
» National Income & Human Development Index
-
» Agriculture Sector, Subsidy and Food Processing
-
» Industries, Manufacturing & Service Sectors
-
» Inclusive growth, Sustainable development and employment
-
» Poverty & Unemployment
-
» Introduction to Micro Economics
-
» Introduction to Macro Economics
-
» Macro fundamentals, GDP, Investment, Growth
-
» Demand & Supply, Profit Loss, Inflation & Price Index
-
» Fiscal Policy, Public Finance and Monetary Policy
-
» Money Supply, Banking and Financial Institutions
-
» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
RECENT BLOGS
Recently Added Subject & Categories For All Competitive Exams
Time and work Questions with Solution PDF IBPS Clerk 2024
Free Time and Work Quants Aptitude concepts based Multiple Choice Questions and Answers Practice Test, Downloadable Quiz PDF for IBPS Clerk Prelims 2024 Exam
Continue Reading »
Series Completion Questions & Answers PDF IBPS Clerk 2024
Top Alphabet Number Series Completion based Verbal Reasoning Multiple choice questions with answers PDF, & Free IBPS Mock tests For IBPS Clerk Prelims 2024
Continue Reading »
New 150+ Percentage Questions For IBPS Clerk Prelims 2024
Free Top Percentage Quants Aptitude based Multiple Choice Questions and Answers Practice Test Series, Quiz PDF & Mock Test for IBPS Clerk Prelims 2024 Exam
Continue Reading »
Classification Reasoning MCQ For IBPS Clerk Prelims 2024
Most Important 100+ Classification based Verbal Reasoning Ability Multiple choice questions and answers PDF, Free New Mock tests For IBPS Clerk Prelims 2024
Continue Reading »