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

Question : 41

The term "Nostro Account" was recently in the news is related to:

1. It is an account that one bank holds in another bank
2. It is used to facilitate international transactions

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 42

Bring out the only incorrect statement:

a) Reverse Repo operation by RBI aims at injecting/ increasing liquidity

b) Rupee appreciation results in decrease in imports

c) SDR refers to special drawing rights

d) Increase in inflation rate leads to decline in real interest rate

Question : 43 [MPPCS 2015]

Which one of the following links all the ATMs in India?

a) National Securities Depository Limited

b) Reserve Bank of India

c) National Payments Corporation of India

d) Indian Bank’s Association

Question : 44

Name of four institutions that are regulated by the RBI as all-India FIs:

1. Export Import Bank of India (EXIM Bank)
2. National Bank for Agriculture and Rural Development (NABARD)
3. National Housing Bank (NHB)
4. Small Industries Development Bank of India (SIDBI)

a) 3 and 4

b) 1 and 2

c) 1, 3, 4

d) 1, 2, 3, 4

Question : 45

_______ deals with long-term finance (more than 365 days) funds. It includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term).

1. Capital market
2. Stock market
3. Debit
4. Credit

a) 2 only

b) 1 only

c) 3 only

d) 4 only