MCQOPTIONS
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MCQOPTIONS
This section includes 141 Mcqs, each offering curated multiple-choice questions to sharpen your Economics (CBCS) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Flexible Exchange Rate System is also known as: |
| A. | Pegged Exchange Rate System |
| B. | Dirty Floating |
| C. | Floating Exchange Rate |
| D. | Both (b) and (c |
| Answer» D. Both (b) and (c | |
| 52. |
In a flexile exchange rate regime |
| A. | central government control the rate |
| B. | state government control the rate |
| C. | government do not have any intervention |
| D. | central bank control the rate |
| Answer» D. central bank control the rate | |
| 53. |
Demand for foreign currency depends upon: |
| A. | repayment of international loans |
| B. | investment in rest of the world |
| C. | direct foreign investment in the domestic economy |
| D. | both (a) and (b |
| Answer» E. | |
| 54. |
Paper currency was used for internal use and gold was used for international settlement under standard |
| A. | IMF |
| B. | gold bullion |
| C. | fixed |
| D. | floating |
| Answer» C. fixed | |
| 55. |
Accounting equation is base of |
| A. | Single entry system |
| B. | Dual concept |
| C. | Double entry system |
| D. | Costing measurement system |
| Answer» D. Costing measurement system | |
| 56. |
Anything used as money must be |
| A. | Fixed in value |
| B. | Fixed in supply |
| C. | Legal tender |
| D. | Readily acceptable |
| Answer» E. | |
| 57. |
Which of the following can change money supply |
| A. | National Assembly |
| B. | Supreme Court |
| C. | Government |
| D. | State Bank |
| Answer» E. | |
| 58. |
One man one vote principle in Co-operative Society was recommended by |
| A. | Gorwala Committee |
| B. | Mac Lagan Committee |
| C. | Minto Morley Committee |
| D. | Montaque Chelmsford Committee |
| Answer» C. Minto Morley Committee | |
| 59. |
Which of the following increase money supply in the country? |
| A. | Purchase of bonds by State Bank |
| B. | Sale of bonds by State Bank |
| C. | Increase in discount rate |
| D. | Decrease in taxes |
| Answer» B. Sale of bonds by State Bank | |
| 60. |
Which of the following organizational structure is followed by cooperatives in India?. |
| A. | Unitary structure |
| B. | Federal structure |
| C. | Centralized structure |
| D. | Decentralized structure |
| Answer» C. Centralized structure | |
| 61. |
The structure of cooperative banking system in India is federal and pyramid type of |
| A. | four-tier |
| B. | three-tier |
| C. | two-tier |
| D. | five-tier |
| Answer» C. two-tier | |
| 62. |
The Urban Credit Cooperative are also commonly known as |
| A. | Urban Cooperative Banks |
| B. | Cooperative Banks |
| C. | National Banks |
| D. | Non of the above |
| Answer» B. Cooperative Banks | |
| 63. |
The first District Cooperative Banks was established at ____________ in 1910. |
| A. | Mumbai in Maharastra |
| B. | Ahmedabad in Gujarat |
| C. | Chennai in Tamil Nadu |
| D. | Ajmer in Rajasthan |
| Answer» E. | |
| 64. |
Interest rate of Deposit of cooperative credit societies are fixed by |
| A. | Registrar |
| B. | Government |
| C. | RBI |
| D. | General Body |
| Answer» B. Government | |
| 65. |
The National Housing Bank was set up in India as wholly-owned subsidiary of which one of the following? |
| A. | ICICI Bank |
| B. | State Bank of India |
| C. | Reserve Bank of India |
| D. | Life Insurance Corporation of India |
| Answer» D. Life Insurance Corporation of India | |
| 66. |
The land mortgage banks grant _______________ to the farmers against the conveyance of land as security. |
| A. | short term loans |
| B. | medium term loans |
| C. | long term loans |
| D. | short& medium term loans |
| Answer» D. short& medium term loans | |
| 67. |
Development banks provide |
| A. | short-term credit only |
| B. | both short-term and medium-term credits |
| C. | both medium-term and long-term credits |
| D. | long-term credit only |
| Answer» D. long-term credit only | |
| 68. |
The first Development banks in India was |
| A. | IDBI |
| B. | ICICI |
| C. | LIC |
| D. | IFCI |
| Answer» E. | |
| 69. |
What is the apex organisation of Industrial Finance in India? |
| A. | Industrial Finance Corporation of India |
| B. | Industrial Credit and Investment corporation of India |
| C. | Industrial Development Bank of India |
| D. | Life Insurance Corporation of India |
| Answer» D. Life Insurance Corporation of India | |
| 70. |
The Industrial Development Banks of India (IDBI) was set up in |
| A. | June 1960 |
| B. | July 1964 |
| C. | March 1963 |
| D. | July 1961 |
| Answer» C. March 1963 | |
| 71. |
Which of the following organizations in India is mainly working to meet the credit needs of all types of agricultural and rural development? |
| A. | FCI |
| B. | NABARD |
| C. | IDBI |
| D. | UTI |
| Answer» C. IDBI | |
| 72. |
The Industrial Reconstruction Corporation of India (IRCI) was set up in |
| A. | 1971 |
| B. | 1961 |
| C. | 1981 |
| D. | 1951 |
| Answer» B. 1961 | |
| 73. |
The Industrial Reconstruction Corporation of India (IRCI) was converted into a statutory corporation called the Industrial Reconstruction Bank of India (IRBI) in |
| A. | March 1982 |
| B. | March 1983 |
| C. | March 1984 |
| D. | March 1985 |
| Answer» E. | |
| 74. |
The National Small Industries Corporation (NSIC) was set up by Government of India in |
| A. | 1954 |
| B. | 1955 |
| C. | 1956 |
| D. | 1957 |
| Answer» C. 1956 | |
| 75. |
Changing the role and growth of Financial institutions, in recent years, Select Financial Institutions viz.,IDBI, ICICI Ltd., EXIM Bank, SIDBI and NABARD have been brought under the supervisory purview of the |
| A. | Reserve Bank of India (RBI |
| B. | Securities and Exchange Board of India (SEBI |
| C. | Ministry of Finance |
| D. | All of the above |
| Answer» B. Securities and Exchange Board of India (SEBI | |
| 76. |
Which movement encourage the formation of commercial banks |
| A. | Swadeshi movement |
| B. | Quit India movement |
| C. | Non-cooperation movement |
| D. | Civil disobedience movement |
| Answer» B. Quit India movement | |
| 77. |
The most important features of money is |
| A. | General acceptability |
| B. | Convertibility into gold |
| C. | Store of value |
| D. | Medium of exchange |
| Answer» B. Convertibility into gold | |
| 78. |
Difference between total receipt and total expenditure is |
| A. | Capital deficit |
| B. | budget deficit |
| C. | fiscal deficit |
| D. | Revenue deficit |
| Answer» C. fiscal deficit | |
| 79. |
Banking sector comes under which of the following sectors? |
| A. | Manufacturing sectors |
| B. | Industrial sectors |
| C. | Service sectors |
| D. | None of the above |
| Answer» D. None of the above | |
| 80. |
Which property the paper money does not possess |
| A. | Acceptability |
| B. | Divisibility |
| C. | Duality |
| D. | Portability |
| Answer» D. Portability | |
| 81. |
Convertible money means |
| A. | It can buy means |
| B. | Government can give gold against it |
| C. | Illegal money |
| D. | Low value of money |
| Answer» C. Illegal money | |
| 82. |
Who is responsible for the supply of coins in India? |
| A. | Reserve bank of India |
| B. | Ministry of finance |
| C. | Ministry of commerce and industry |
| D. | Bankers association of India |
| Answer» C. Ministry of commerce and industry | |
| 83. |
The commercial banks in India are governed by |
| A. | Reserve bank of India Act 1934 |
| B. | Indian Companies Act 1956 |
| C. | Indian Banking Regulation Act 1949 |
| D. | Securities and Exchange Board of Indian Act 1993 |
| Answer» D. Securities and Exchange Board of Indian Act 1993 | |
| 84. |
Which of the following limits the power of credit creation by commercial bank |
| A. | Fiscal policy |
| B. | Banking loan |
| C. | Business possession |
| D. | None of the above |
| Answer» E. | |
| 85. |
Which of the following is a commercial bank? |
| A. | State Bank of India |
| B. | Unit Trust of India (UTI |
| C. | IDBI |
| D. | NABARD |
| Answer» B. Unit Trust of India (UTI | |
| 86. |
Deposits which arise from granting of loans are called |
| A. | primary deposits |
| B. | derivative deposits |
| C. | fixed deposits |
| D. | All the above |
| Answer» C. fixed deposits | |
| 87. |
Which among the following is considered to be the most liquid asset? |
| A. | Gold |
| B. | Money |
| C. | Land |
| D. | Treasury bonds |
| Answer» C. Land | |
| 88. |
In order to control credit and investment , the central bank of a country should |
| A. | Sell securities in the open market and hike the cash reserve ratio |
| B. | Buy securities in the open market |
| C. | Buy securities from the open market and hike the cash reserve ratio |
| D. | Sell securities in the open market |
| Answer» B. Buy securities in the open market | |
| 89. |
The first financial institution set up in India |
| A. | IDBI |
| B. | ICICI |
| C. | IRBI |
| D. | IFCI |
| Answer» E. | |
| 90. |
Which one of the following is not an instrument of credit control in the banking system? |
| A. | Open market operation |
| B. | Cash Reserve ratio |
| C. | Tax rate |
| D. | Bonds and debentures |
| Answer» D. Bonds and debentures | |
| 91. |
The commercial bank do not perform one function out of the following |
| A. | Mobilization of saving |
| B. | Giving loans and advances |
| C. | Issues currency notes |
| D. | Financing priority sectors |
| Answer» D. Financing priority sectors | |
| 92. |
Number of times a unit of money change hands in the course of a year is called |
| A. | Supply of money |
| B. | Purchasing power of money |
| C. | Velocity of money |
| D. | value of money |
| Answer» D. value of money | |
| 93. |
The assets can be convert into cash within a short period like one year or less are known as |
| A. | Current asset |
| B. | Fixed asset |
| C. | Tangible asset |
| D. | Investment |
| Answer» B. Fixed asset | |
| 94. |
Assets liability = |
| A. | Profit |
| B. | Working capital |
| C. | Capital |
| D. | Long term liability |
| Answer» D. Long term liability | |
| 95. |
The market forces influencing the exchange rate are not fully operational under |
| A. | floating exchange rate system |
| B. | speculative attack on the market |
| C. | fixed exchange rate system |
| D. | current regulations of IMF |
| Answer» D. current regulations of IMF | |
| 96. |
Which one of the following is near money? |
| A. | Treasury Bills |
| B. | Bills of Exchange |
| C. | Bonds and Debentures |
| D. | All of the above |
| Answer» E. | |
| 97. |
Which one of the following is not included in the function of money |
| A. | Make demand and supply |
| B. | Store of value |
| C. | Medium of exchange |
| D. | Measure of value |
| Answer» B. Store of value | |
| 98. |
Which of the following statements is/are not true ? |
| A. | RBI is the Bank of Issue. |
| B. | RBI acts as the Banker of the Government. |
| C. | RBI is known as the Banker's Bank. |
| D. | RBI does not regulate the credit flow. |
| Answer» E. | |
| 99. |
According managed to classification by IMF, the currency system of India falls under |
| A. | Managed flating |
| B. | independently floating |
| C. | crawling peg |
| D. | pegged to basket of currencies |
| Answer» B. independently floating | |
| 100. |
Decreasing percentage of statutory liquidity ratio by RBI |
| A. | Increase the volume credits at the hands of commercial banks. |
| B. | Reduce inflation. |
| C. | Decrease the volume credit at the hands of commercial banks. |
| D. | Raise the interest rate charged by the commercial banks. |
| Answer» B. Reduce inflation. | |