money supply, banking & financial institutions section 11 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

Cryptocurrencies are not legal tender but as such, there is no blanket ban on trading in cryptocurrencies.

There is a draft bill "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019", as per which holding, selling or dealing in cryptocurrencies such as Bitcoin could soon land you in jail for 10 years. But till now it is just in the draft stage and has not become an act.

Cryptocurrencies acquire value as they can be generated/mined only in limited numbers and if more and more people would like to hold/possess it, its value increases.

In a circular in April 2018, RBI had imposed a virtual ban on cryptocurrency trading in India and had directed all entities which fall under the purview of (regulated by) RBI to not deal in virtual currencies or provide services to those who want to deal in it.

In March 2020 the Supreme court has set aside (quashed) the order, allowing trade in digital assets.

Answer: (d)

Capital markets are financial markets for the buying and selling of long-term debt or equity-backed securities. These markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making longterm investments.

Answer: (b)

Answer: (b)

Regional Rural Banks (RRBs) are regulated by RBI and supervised by NABARD

Answer: (b)