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.
| 101. |
In July 1969, 14 major Indian scheduled banks were nationalised and 6 more banks were nationalised in |
| A. | April 1980 |
| B. | May 1980 |
| C. | April 1981 |
| D. | May 1981 |
| Answer» B. May 1980 | |
| 102. |
Which of the followong Governors of RBI also served as the Finance Minister of India ? |
| A. | Pranav Mukherjee |
| B. | Amitabha Ghosh |
| C. | Sir Benegal Rama Rao |
| D. | Dr. Manmohan Singh |
| Answer» E. | |
| 103. |
Commercial banks create |
| A. | Credit money |
| B. | Token money |
| C. | Legal money |
| D. | Do not create money |
| Answer» B. Token money | |
| 104. |
Under fixed exchange rate system, the currency rate in the market is maintained through |
| A. | official intervention |
| B. | rationing of foreign exchange |
| C. | centralising all foreign exchange operations with central bank of the country |
| D. | none of the above |
| Answer» B. rationing of foreign exchange | |
| 105. |
Indirect rate of exchange is quoted in India for - |
| A. | sale of foreign travellers cheque |
| B. | sale of rupee travellers cheques |
| C. | purchase of personal cheques |
| D. | none of the above |
| Answer» E. | |
| 106. |
Euro was launched on |
| A. | 1999 |
| B. | 2000 |
| C. | 2002 |
| D. | 2004 |
| Answer» B. 2000 | |
| 107. |
A transaction in which the currencies to be exchanged the next day of the transaction is known as |
| A. | ready transaction |
| B. | value today |
| C. | spot transactions |
| D. | Value tomorrow |
| Answer» E. | |
| 108. |
Which is not a function of RBI ? |
| A. | Holding cash reserves of all commercial banks and make available financial accommodation to them. |
| B. | Assuming responsibility of all banking operations of the government. |
| C. | Assuming the responsibility of the statistical analysis of data related to macro economy of India . |
| D. | Assuming the responsibility to meet directly or indirectly all reasonable demands for the accommodation. |
| Answer» D. Assuming the responsibility to meet directly or indirectly all reasonable demands for the accommodation. | |
| 109. |
The transaction in which the exchange of currencies takes place at a specified future date, subsequent to the spot date is known as a |
| A. | swap transaction |
| B. | forward transaction |
| C. | future transaction |
| D. | non-deliverable forwards |
| Answer» C. future transaction | |
| 110. |
RBI has withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise in which year ? |
| A. | 2010 |
| B. | 2011 |
| C. | 2012 |
| D. | 2013 |
| Answer» C. 2012 | |
| 111. |
The buying rate is also known as the |
| A. | bid rate |
| B. | offer rate |
| C. | spread |
| D. | swap |
| Answer» B. offer rate | |
| 112. |
Debentures is also name as |
| A. | share |
| B. | Bond |
| C. | Equity |
| D. | Reserve |
| Answer» C. Equity | |
| 113. |
A bills of exchange when drawn requires |
| A. | Nothing |
| B. | Discounting |
| C. | Acceptance |
| D. | Investment |
| Answer» D. Investment | |
| 114. |
Whichof the following is most liquid measure of money supply in India |
| A. | M1 |
| B. | M2 |
| C. | M3 |
| D. | M4 |
| Answer» B. M2 | |
| 115. |
The term bank liquidity means |
| A. | Its capacity to create credit |
| B. | Its capacity to provide a high rate of interest |
| C. | Its capacity to convert its assets into cash |
| D. | None of the above |
| Answer» D. None of the above | |
| 116. |
Which of the following money supply is used by RBI? |
| A. | Currency notes |
| B. | Coins |
| C. | Both A &B |
| D. | None of the above |
| Answer» B. Coins | |
| 117. |
The recent conversion of Financial Institutions into Commercial Banks or Non-Banking Finance Companies (NBFCs) under the regulatory aspect of RBI was suggested by |
| A. | Narasimham Committee |
| B. | Ministry of Company Affairs |
| C. | Ministry of Finance |
| D. | None of the above |
| Answer» B. Ministry of Company Affairs | |
| 118. |
What would be the impact on cash reserves of the commercial banks if RBI conducts the sale of securities? |
| A. | Decrease |
| B. | Increase |
| C. | Either increase or decrease |
| D. | Remains contant |
| Answer» B. Increase | |
| 119. |
The commercial banks were required to keep some percentages of their time deposits and their demand deposits with the RBI in the form of reserves is known as |
| A. | Statutory Liquidity ratio |
| B. | Cash reserve ratio |
| C. | Moral suasion |
| D. | Open market operation |
| Answer» C. Moral suasion | |
| 120. |
If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as |
| A. | Open market Operations. |
| B. | Credit monitoring Arrangement |
| C. | Selective credit control |
| D. | Moral suasion. |
| Answer» D. Moral suasion. | |
| 121. |
The RBI s function of Banker to Government implies |
| A. | Issue of currency |
| B. | Buys and sells government securities |
| C. | Manages public debt by issuing government loans |
| D. | Sells treasury bills on behalf of government |
| Answer» D. Sells treasury bills on behalf of government | |
| 122. |
Ways and Means advanced by RBI refers to |
| A. | Meeting temporary mismatches between receipts and expenditure. |
| B. | Providing short term loans for consumption expenditure. |
| C. | Buying goods from abro |
| Answer» B. Providing short term loans for consumption expenditure. | |
| 123. |
Which of the following coins is not issued by the RBI ? |
| A. | Re. 1 |
| B. | Rs. 2 |
| C. | Rs. 5 |
| D. | Rs. 10 |
| Answer» B. Rs. 2 | |
| 124. |
Which of the following is/ are the Quantitative Instrument of RBI ? |
| A. | CRR |
| B. | SLR |
| C. | All of the above |
| D. | None of above |
| Answer» D. None of above | |
| 125. |
Which of the following works as the agent of RBI while it has no own offices ? |
| A. | IMF |
| B. | SBI |
| C. | GOI |
| D. | Ministry of Finance |
| Answer» C. GOI | |
| 126. |
Which among the following would not help RBI to control the inflation in the country ? |
| A. | Increase in Reserve Ratio Requirements |
| B. | Increase in Bank Rate |
| C. | Purchase of securities in open market |
| D. | Increase in Repo Rate |
| Answer» E. | |
| 127. |
When one country manipulates exchange rate against the interest of other country, is known as |
| A. | managed floating |
| B. | dirty floating |
| C. | wide band |
| D. | crawling peg |
| Answer» C. wide band | |
| 128. |
The National Co-operative Development Corporation (NCDC) was established in |
| A. | march 1960 |
| B. | march 1961 |
| C. | March 1962 |
| D. | March 1963 |
| Answer» E. | |
| 129. |
Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price? |
| A. | Nominal exchange rate |
| B. | Nominal effective exchange rate |
| C. | Real exchange rate |
| D. | Real effective exchange rate |
| Answer» E. | |
| 130. |
Which of the following is not the function of Reserve Bank of India? |
| A. | Acting as banker to the Government. |
| B. | Keeping foreign Exchange Reserve. |
| C. | Regulating credit in the country. |
| D. | Issuing of one rupee notes and coins. |
| Answer» E. | |
| 131. |
Banking in India is controlled by |
| A. | Union Finance Commission |
| B. | Union Ministry of Finance |
| C. | Union Ministry of Commerce |
| D. | Reserve Bank of India |
| Answer» E. | |
| 132. |
The objectives of monetary policy is / are |
| A. | Price Stability |
| B. | Economic growth |
| C. | Increase import of luxury goods |
| D. | Both (a) and (b |
| Answer» E. | |
| 133. |
Bank rate is defined as |
| A. | Rate of interest charged by commercial banks from borrowers |
| B. | Rate of interest allowed by commercial banks on demand deposits. |
| C. | Rate of interest allowed by commercial banks on time deposits. |
| D. | Rate which RBI purchases or rediscount bills of exchange of commercial banks. |
| Answer» E. | |
| 134. |
Which of the following is true about the objectives of RBI trying to achieve-(i) Price Stability(ii) Reduce deficit(iii) Encourage export(iv) Growth |
| A. | Both (i) and (ii |
| B. | Both (iii) and (iv |
| C. | All the Above |
| D. | None of the above |
| Answer» D. None of the above | |
| 135. |
The Reserve Bank of India was nationalized in |
| A. | 1st January 1949. |
| B. | 1st April, 1935 |
| C. | 1st May, 1947 |
| D. | 1st June, 1949 |
| Answer» B. 1st April, 1935 | |
| 136. |
The Governor of RBI is appointed by |
| A. | Board of Directors |
| B. | Central Government |
| C. | Finance Minister |
| D. | None of the above |
| Answer» C. Finance Minister | |
| 137. |
Which of the following is true about the functions performed by RBI -(i) It is the Bank of Issue(ii) It acts as banker to the Government(iii) It is the banker of other banks(iv) It regulates the flow of credit |
| A. | Both (i) and (ii |
| B. | Both (iii) and (iv |
| C. | All the Above |
| D. | None of the above |
| Answer» D. None of the above | |
| 138. |
The chairman of the Central Board of RBI is |
| A. | Governor |
| B. | Deputy Governor. |
| C. | Finance Minister, Govt. of India |
| D. | Prime Minister |
| Answer» B. Deputy Governor. | |
| 139. |
Which of the following is true about the functions of RBI- |
| A. | Export finance |
| B. | Agriculture finance |
| C. | Collecting data and publication |
| D. | Exchange management and control |
| Answer» D. Exchange management and control | |
| 140. |
Which of the following is true that RBI as a banker to the government(i) Maintaining and operating deposit accounts of Central and State Governments.(ii) Receipt and collection of payments to the Central and State Governments.(iii) Making payments on behalf of Central and state Governments.(iv) Providing ways and means advances to the Central and State Governments. |
| A. | Both (i) and (ii |
| B. | Both (iii) and (iv |
| C. | All the Above |
| D. | None of the above |
| Answer» D. None of the above | |
| 141. |
The custodian of India s foreign exchange reserve is |
| A. | State Bank of India (SBI |
| B. | Reserve Bank of India (RBI |
| C. | International Monetary Fund (IMF |
| D. | World Bank |
| Answer» C. International Monetary Fund (IMF | |