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MCQOPTIONS
This section includes 2956 Mcqs, each offering curated multiple-choice questions to sharpen your UPSC IAS Exam knowledge and support exam preparation. Choose a topic below to get started.
| 2151. |
Which of the following measures would result in an increase in the money supply in the economy?1. Purchase of government securities from the public by the Central Bank2. Deposit of currency in commercial banks by the public3. Borrowing by the government from the Central Bank 4. Sale of government securities to the public by the Central BankSelect the correct answer using the codes given below: |
| A. | 1 only |
| B. | 2 and 4 |
| C. | 1 and 3 |
| D. | 2, 3 and 4 |
| Answer» D. 2, 3 and 4 | |
| 2152. |
Name the 3 commodities in the Wholesale Price Index. 1. Primary articles 2. Fuel, power, light and lubricants 3. Manufactured products 4. Food articles and industrial raw materials |
| A. | 1, 2 and 3 |
| B. | 2, 3 and 4 |
| C. | 1, 3 and 4 |
| D. | 1 and 3 |
| Answer» B. 2, 3 and 4 | |
| 2153. |
Consider the following statements : The function of the Reserve Bank of India does not include: 1. Open market operations 2. Monitoring revenue collection 3. Supervising non-banking finance companies 4. Review of public expenditure Which of the statement/s given above is/are correct? |
| A. | 1 only |
| B. | 2 and 4 |
| C. | 1, 3 and 4 |
| D. | 1, 2, 3 and 4 |
| Answer» C. 1, 3 and 4 | |
| 2154. |
An increase in the Bank Rate generally indicates that the : |
| A. | Market rate of interest is likely to fall |
| B. | Central Bank is no longer making loans to commercial banks |
| C. | Central Bank is following an easy money policy |
| D. | Central Bank is following a tight money policy |
| Answer» E. | |
| 2155. |
The most active segment of the Money Market in India is which one of the following? |
| A. | Call Money / Notice Money Market |
| B. | Repo / Reverse Repo |
| C. | Commercial Paper (CP) |
| D. | Certificate of Deposit (CD) |
| Answer» B. Repo / Reverse Repo | |
| 2156. |
What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents? |
| A. | Bill of Exchange |
| B. | Letter of Exchange |
| C. | Letter of Credit |
| D. | Bill of Entry |
| Answer» D. Bill of Entry | |
| 2157. |
"Bad money (if not limited in quantity) drives good money out of circulation." The above statement is from which among the following laws? |
| A. | Keynes' law |
| B. | Wagner's law |
| C. | Gresham's law |
| D. | Grimm's Law |
| Answer» D. Grimm's Law | |
| 2158. |
An excise duty is a charge on which of the following? |
| A. | Export of goods |
| B. | Production of goods |
| C. | Production or sale of goods |
| D. | Consumption of good |
| Answer» D. Consumption of good | |
| 2159. |
Which among the following is true about "deficit Financing"? |
| A. | Public expenditure in excess of public revenue |
| B. | Public revenue in excess of public expenditure |
| C. | New currency replaced by old currency |
| D. | None of above |
| Answer» B. Public revenue in excess of public expenditure | |
| 2160. |
Capitalism is based upon "Laissez-faire system". What is "Laissez-faire system"? |
| A. | No governmental intervention |
| B. | Maximum governmental intervention |
| C. | Role of market forces is minimum |
| D. | Limited government Intervention |
| Answer» B. Maximum governmental intervention | |
| 2161. |
"A statement of estimated receipts and expenditures called annual Financial Statement (Budget) has to be placed before parliament for each financial year." The above provision has been enshrined in which among the following articles of Constitution of India? |
| A. | Article 110 |
| B. | Article 111 |
| C. | Article 112 |
| D. | Article 113 |
| Answer» D. Article 113 | |
| 2162. |
Inflation, in theory, occurs: |
| A. | when the price of essential commodities outstrips income |
| B. | when money supply grows at a higher rate than GDP in real terms |
| C. | when the exchange rate of a currency falls |
| D. | when fiscal deficit exceeds balance of payment Deficit |
| Answer» C. when the exchange rate of a currency falls | |
| 2163. |
Which among the following is NOT an instrument of qualitative control in India? |
| A. | Regulation of the Consumer Credit |
| B. | Rationing of the Credit |
| C. | Margin Requirements |
| D. | Variable Costs and Reserves |
| Answer» E. | |
| 2164. |
Which one of the following Public Sector Bank's emblem figures a dog and the words 'faithful friendly, in it? |
| A. | Punjab National Bank |
| B. | Syndicate Bank |
| C. | Oriental Bank of Commerce |
| D. | State Bank of India |
| Answer» C. Oriental Bank of Commerce | |
| 2165. |
For which of the following, the Reserve Bank of India has stipulated a maximum Capital Adequacy Requirements in India? |
| A. | Private Sector Banks |
| B. | Banks that Undertake Insurance Business. |
| C. | Local Area Banks |
| D. | Scheduled Commercial Banks |
| Answer» D. Scheduled Commercial Banks | |
| 2166. |
Which among the following is NOT Tier I Capital? |
| A. | Paid up Capital |
| B. | Statutory Reserves |
| C. | Revaluation Reserves |
| D. | Investment Fluctuation Reserves |
| Answer» D. Investment Fluctuation Reserves | |
| 2167. |
As per Section 24 (2A) of Banking Regulation Act 1949, every banking company in India has to maintain equivalent to an amount which shall not at the close of the business on be less than 25 % of the total of its net demand and time liabilities, which is known as SLR. Which among the following is the correct option? |
| A. | Any Day |
| B. | Any Week |
| C. | Any Fortnight |
| D. | Any Month |
| Answer» B. Any Week | |
| 2168. |
Which among the following correctly defines the Net Interest Income? |
| A. | Interest earned on advances |
| B. | Interest earned on investments |
| C. | Total interest earned on advances and investment |
| D. | Difference between interest earned and interest paid |
| Answer» E. | |
| 2169. |
Which of the following markets are independently regulated by Forward Market Commission? |
| A. | Mutual Funds |
| B. | Commodity Futures Market |
| C. | Stock Market |
| D. | Foreign Exchange Markets |
| Answer» C. Stock Market | |
| 2170. |
Bring out the only incorrect statement: |
| A. | Reverse Repo operation by RBI aims at injecting? increasing liquidity |
| B. | SDR refers to special drawing rights |
| C. | Rupee appreciation results in decrease in imports |
| D. | Increase in inflation rate leads to decline in real interest rate |
| Answer» D. Increase in inflation rate leads to decline in real interest rate | |
| 2171. |
Which among the following is the only correct statement? |
| A. | Money market meets long term financing needs |
| B. | Recession in industrial sector in India is normally due to fall in exports |
| C. | Ways and means advances given by RBI are nowhere related to State?s revenue |
| D. | Exchange rate is fixed by RBI |
| Answer» D. Exchange rate is fixed by RBI | |
| 2172. |
Which among Ithe following is considered to be a part of Shadow Banking in India? |
| A. | Business Correspondents |
| B. | Bankassurance Providers |
| C. | Non-Banking Financial Companies |
| D. | Private Banks |
| Answer» D. Private Banks | |
| 2173. |
The concept of 'Universal Banking' was implemented in India on the recommendations of: |
| A. | Abid Hussain Committee |
| B. | R H Khan Committee |
| C. | S Padmanabhan Committee |
| D. | Y H Malegam Committee |
| Answer» C. S Padmanabhan Committee | |
| 2174. |
If an exporter earns money and deposits that with RBI, what will be the ultimate impact on country's money supply? |
| A. | Money supply will increase |
| B. | Money supply will decrease |
| C. | Money supply will remain unaltered |
| D. | Money supply will depend upon the current exchange rate |
| Answer» B. Money supply will decrease | |
| 2175. |
Other things being equal, what would be the impact of an increase in net capital inflow on the Indian currency? |
| A. | There would be an increase in the demand for the American dollar and an appreciation of the currency. |
| B. | There would be a decrease in the demand for the rupees (Rs.) and a depreciation of the currency. |
| C. | There would be an increase in the supply of the American dollar and an appreciation of the currency. |
| D. | There would be a decrease in the supply of the American dollar and a depreciation of the currency. |
| Answer» B. There would be a decrease in the demand for the rupees (Rs.) and a depreciation of the currency. | |
| 2176. |
Which action by the Reserve Bank would stimulate the economy in an economic downturn? |
| A. | Selling government securities in the cash market |
| B. | Buying government securities in the cash market |
| C. | Selling foreign currencies on the foreign exchange market |
| D. | Buying foreign currencies on the foreign exchange Market |
| Answer» C. Selling foreign currencies on the foreign exchange market | |
| 2177. |
Which of the following could be a cause of demand inflation? |
| A. | An increase in the cost of labour |
| B. | An increase in domestic interest rates |
| C. | An increase in the level of consumer spending |
| D. | An increase in import prices, resulting from a depreciating dollar |
| Answer» D. An increase in import prices, resulting from a depreciating dollar | |
| 2178. |
Which of the following would best describe the role of a merchant bank? |
| A. | To monitor the activities of publicly-list companies |
| B. | To act as banker and financial agent to the federal government |
| C. | To provide borrowing and leading services, primarily to the business sector |
| D. | To provide loans to the corporate sector through receipts of insurance premiums |
| Answer» D. To provide loans to the corporate sector through receipts of insurance premiums | |
| 2179. |
A rise in "SENSEX" means: |
| A. | a rise in prices of shares of all companies registered with Bombay Stock Exchange |
| B. | a rise in prices of shares of all companies registered with National Stock Exchange |
| C. | an overall rise in prices of shares of group up companies registered with Bombay Stock Exchange |
| D. | a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange |
| Answer» D. a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange | |
| 2180. |
An outward shift in the demand for money, other things being equal should lead to: |
| A. | A lower interest rate but the same quantity of money |
| B. | A higher interest rate but the same quantity of money |
| C. | A higher quantity of money but lower interest rates |
| D. | A higher quantity of money but the same interest rate |
| Answer» C. A higher quantity of money but lower interest rates | |
| 2181. |
What are "Futures"? |
| A. | Securities or commodities sold or bought with the assumption of delivery at a later stage |
| B. | Shares and debentures bought at a cheaper rate and sold later at high rates |
| C. | Particular types and quantities of securities and com-modities bought for selling at higher prices |
| D. | None of these |
| Answer» B. Shares and debentures bought at a cheaper rate and sold later at high rates | |
| 2182. |
The acronym SRO, being used in the capital market for various market participants, stands for which one of the following? |
| A. | Self-Regulatory Organisations |
| B. | Small Revenue Operators |
| C. | Securities Roll-back Operators |
| D. | Securities Regulatory Organisations |
| Answer» B. Small Revenue Operators | |
| 2183. |
The International Development Association, a lending agency, is administered by the: |
| A. | International Bank for Reconstruction and Development |
| B. | International Fund for Agricultural Development |
| C. | United Nations Development Programme. |
| D. | United Nations Industrial Development Organization |
| Answer» B. International Fund for Agricultural Development | |
| 2184. |
The basic aim of Lead Bank Scheme is that: |
| A. | big banks should try to open offices in each district |
| B. | there should be stiff competition among the various nationalized banks |
| C. | individual banks should adopt particular districts for intensive development |
| D. | all the banks should make intensive efforts to mobilize deposits |
| Answer» D. all the banks should make intensive efforts to mobilize deposits | |
| 2185. |
A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect"? |
| A. | It is the impact of drastic deficiency in supply due to failure of crops |
| B. | It is the impact of the surge in demand due to rapid economic growth |
| C. | It is the impact of the price levels of previous year on the calculation of inflation rate |
| D. | None of the statements [a], [b] and [c]]\ given above is correct in this context |
| Answer» D. None of the statements [a], [b] and [c]]\ given above is correct in this context | |
| 2186. |
Which one of the following statements is an appropriate description of deflation? |
| A. | It is a sudden fall in the value of a currency against other currencies |
| B. | It is a persistent recession in both the financial and real sectors of economy |
| C. | It is a persistent fall in the general price level of goods and services |
| D. | It is a fall in the rate of inflation over a period of time |
| Answer» D. It is a fall in the rate of inflation over a period of time | |
| 2187. |
DIRECTION: Match the following and select the correct answer using the codes given below the lists. Stock exchange name Set up Yeari.NSEA.1887ii.BSEB.1984iii.OTCEIC.1989iv.ISED.1998 |
| A. | I-A, II-B, III-C, IV-D |
| B. | I-B, II-A, III-C, IV-D |
| C. | I-D, II-C, III-B, IV-A |
| D. | I-C, II-B, III-A, IV-D |
| Answer» C. I-D, II-C, III-B, IV-A | |
| 2188. |
DIRECTION: Match List-I with List-II and select the correct answer using the codes given below the lists. List-I List-II[A]Depression(1)Coexistence of inflation and stagnation[B]Recession(2)Recovery from depression[C]Reflation(3)Reduction in production over a short period[D]Stagflation Leading(4)Insufficient demand to idle men and machinery over a long time (5)Reduction in level of economy due to falling prices |
| A. | A-1; B-2; C-3; D-5 |
| B. | A-4; B-3; C-2; D-5 |
| C. | A-4; B-3; C-2; D-1 |
| D. | A-3; B-4; C-2; D-1 |
| Answer» C. A-4; B-3; C-2; D-1 | |
| 2189. |
With reference to the International Monetary and Financial Committee (IMFC), consider the following statements: [IAS Prelims 2016] 1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work. 2. The World Bank participates as observer in (MFC) meetings. Which of the statements given above is/are correct? |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 2190. |
With reference to 'IFC Masala Bonds', sometimes seen in die news, which of the statements given below is/are correct? [IAS Prelims 2016]1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.Select the correct answer using the code given below. |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 2191. |
With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct? [IAS Prelims 2016] 1. Bitcoins are tracked by the Central Banks of the countries. 2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address. 3. Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below. |
| A. | 1 and 2 only |
| B. | 2 and 3 only |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» C. 3 only | |
| 2192. |
The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term? [IAS Prelims 2016] 1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 2. It is an effort to increase RBI's control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. Select the correct answer using the code given below. |
| A. | 1 only |
| B. | 2 and 3 only |
| C. | 1 and 3 only |
| D. | 1, 2 and 3 |
| Answer» B. 2 and 3 only | |
| 2193. |
The establishment of 'Payment Banks' is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context? [IAS Prelims 2016] 1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks. 2. Payment Banks can issue both credit cards and debit cards. 3. Payment Banks cannot undertake lending activities. Select the correct answer using the code given below. |
| A. | 1 and 2 only |
| B. | 1 and 3 only |
| C. | 2 only |
| D. | 1, 2 and 3 |
| Answer» C. 2 only | |
| 2194. |
____ is set up to promote liquidity to stocks of small and medium enterprises. 1. Indo Next 2. Interconnected Stock Exchange of India 3. Over the Counter Exchange of India 4. Bombay Stock Exchange Choose the correct code. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 2 only | |
| 2195. |
Consider the following statement: 1. IRDA is a multimember nodal agency 2. It is vested with regulatory powers in respect of the insurance sector similar to those vested in SEBI in respect of the capital markets and of RBI for the banking sector. 3. The IRDA Act, 1999 cleared the way for private sector entry into the insurance business. Choose the correct statement. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | All of the Above |
| Answer» E. | |
| 2196. |
Consider the following statement. 1. NABARD stands for National Bank for Agriculture and Rural Design 2. NABARD is an apex developmental bank in India. 3. Setting up of NABARD was recommended by the committee to review arrangements for institutional credit for agriculture and rural development, set up by the RBI, under the chairmanship of Shri B. Sivaraman. Which statement is incorrect? |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 2 only | |
| 2197. |
The ______ bank linkage programme continued to be the main micro-finance model by which the formal banking system reaches micro-entrepreneurs (including farmers). 1. Self-Help Group 2. Indian bank 3. SBI 4. PNB Choose the correct name of the bank. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 2 only | |
| 2198. |
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. Choose the correct code. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1, 2, 3 |
| Answer» E. | |
| 2199. |
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) Choose the correct answer. |
| A. | 1 and 2 |
| B. | 3 and 4 |
| C. | 1, 3, 4 |
| D. | 1, 2, 3, 4 |
| Answer» E. | |
| 2200. |
What all are local authorities? 1. City corporations 2. Municipalities 3. Port trusts Choose the incorrect option. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | None of the Above |
| Answer» E. | |