McqMate
Chapters
1. |
Which of the following is a commercial bank? |
A. | State Bank of India |
B. | Unit Trust of India (UTI |
C. | IDBI |
D. | NABARD |
Answer» A. State Bank of India |
2. |
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» D. All of the above |
3. |
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» A. April 1980 |
4. |
The liabilities of a bank are |
A. | Advance and loans |
B. | Time deposits and shares |
C. | Cash with reserve ratio |
D. | Bonds and debentures of share holders |
Answer» B. Time deposits and shares |
5. |
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» A. Narasimham Committee |
6. |
Which property the paper money does not possess |
A. | Acceptability |
B. | Divisibility |
C. | Duality |
D. | Portability |
Answer» C. Duality |
7. |
Rupee is a coin |
A. | Full Value |
B. | Token money |
C. | Credit money |
D. | Convertible |
Answer» B. Token money |
8. |
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» A. Make demand and supply |
9. |
Convertible money means |
A. | It can buy means |
B. | Government can give gold against it |
C. | Illegal money |
D. | Low value of money |
Answer» B. Government can give gold against it |
10. |
Commercial banks create |
A. | Credit money |
B. | Token money |
C. | Legal money |
D. | Do not create money |
Answer» A. Credit money |
11. |
The most important features of money is |
A. | General acceptability |
B. | Convertibility into gold |
C. | Store of value |
D. | Medium of exchange |
Answer» A. General acceptability |
12. |
Which movement encourage the formation of commercial banks |
A. | Swadeshi movement |
B. | Quit India movement |
C. | Non-cooperation movement |
D. | Civil disobedience movement |
Answer» A. Swadeshi movement |
13. |
In which year was the Banking Regulation Act passed? |
A. | 1949 |
B. | 1955 |
C. | 1959 |
D. | 1969 |
Answer» A. 1949 |
14. |
What is the most widely used tool of monetary policy? |
A. | Issuing of notes |
B. | Open market operation |
C. | Discount rate |
D. | None of the above |
Answer» C. Discount rate |
15. |
Banking sector comes under which of the following sectors? |
A. | Manufacturing sectors |
B. | Industrial sectors |
C. | Service sectors |
D. | None of the above |
Answer» C. Service sectors |
16. |
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» B. Ministry of finance |
17. |
Difference between total receipt and total expenditure is |
A. | Capital deficit |
B. | budget deficit |
C. | fiscal deficit |
D. | Revenue deficit |
Answer» B. budget deficit |
18. |
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» C. Indian Banking Regulation Act 1949 |
19. |
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» D. None of the above |
20. |
Deposits which arise from granting of loans are called |
A. | primary deposits |
B. | derivative deposits |
C. | fixed deposits |
D. | All the above |
Answer» B. derivative deposits |
21. |
Which among the following is considered to be the most liquid asset? |
A. | Gold |
B. | Money |
C. | Land |
D. | Treasury bonds |
Answer» B. Money |
22. |
The first financial institution set up in India |
A. | IDBI |
B. | ICICI |
C. | IRBI |
D. | IFCI |
Answer» D. IFCI |
23. |
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» A. Sell securities in the open market and hike the cash reserve ratio |
24. |
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» C. Tax rate |
25. |
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» C. Issues currency notes |
26. |
Credit creation power of the commercial banks gets limited by which of the following? |
A. | Banking habits of the people |
B. | Cash reserve ratio |
C. | Credit policy of the Central bank |
D. | All the above |
Answer» D. All the above |
27. |
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» C. Velocity of money |
28. |
Assets – liability = |
A. | Profit |
B. | Working capital |
C. | Capital |
D. | Long term liability |
Answer» C. Capital |
29. |
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» A. Current asset |
30. |
Debentures is also name as |
A. | share |
B. | Bond |
C. | Equity |
D. | Reserve |
Answer» B. Bond |
31. |
A bills of exchange when drawn requires |
A. | Nothing |
B. | Discounting |
C. | Acceptance |
D. | Investment |
Answer» C. Acceptance |
32. |
The following is not a type of liability |
A. | Short term |
B. | Current |
C. | Fixed |
D. | Contingent |
Answer» A. Short term |
33. |
Whichof the following is most liquid measure of money supply in India |
A. | M1 |
B. | M2 |
C. | M3 |
D. | M4 |
Answer» A. M1 |
34. |
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» A. Currency notes |
35. |
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» C. Its capacity to convert its assets into cash |
36. |
Accounting equation is base of |
A. | Single entry system |
B. | Dual concept |
C. | Double entry system |
D. | Costing measurement system |
Answer» C. Double entry system |
37. |
Anything used as money must be |
A. | Fixed in value |
B. | Fixed in supply |
C. | Legal tender |
D. | Readily acceptable |
Answer» D. Readily acceptable |
38. |
Which of the following can change money supply |
A. | National Assembly |
B. | Supreme Court |
C. | Government |
D. | State Bank |
Answer» D. State Bank |
39. |
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» A. Purchase of bonds by State Bank |
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