McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Economics (CBCS) .
Chapters
| 51. |
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 | |
| 52. |
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 | |
| 53. |
In which year was the Banking Regulation Act passed? |
| A. | 1949 |
| B. | 1955 |
| C. | 1959 |
| D. | 1969 |
| Answer» A. 1949 | |
| 54. |
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 | |
| 55. |
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 | |
| 56. |
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 | |
| 57. |
Difference between total receipt and total expenditure is |
| A. | Capital deficit |
| B. | budget deficit |
| C. | fiscal deficit |
| D. | Revenue deficit |
| Answer» B. budget deficit | |
| 58. |
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 | |
| 59. |
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 | |
| 60. |
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 | |
| 61. |
Which among the following is considered to be the most liquid asset? |
| A. | Gold |
| B. | Money |
| C. | Land |
| D. | Treasury bonds |
| Answer» B. Money | |
| 62. |
The first financial institution set up in India |
| A. | IDBI |
| B. | ICICI |
| C. | IRBI |
| D. | IFCI |
| Answer» D. IFCI | |
| 63. |
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 | |
| 64. |
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 | |
| 65. |
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 | |
| 66. |
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 | |
| 67. |
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 | |
| 68. |
Assets – liability = |
| A. | Profit |
| B. | Working capital |
| C. | Capital |
| D. | Long term liability |
| Answer» C. Capital | |
| 69. |
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 | |
| 70. |
Debentures is also name as |
| A. | share |
| B. | Bond |
| C. | Equity |
| D. | Reserve |
| Answer» B. Bond | |
| 71. |
A bills of exchange when drawn requires |
| A. | Nothing |
| B. | Discounting |
| C. | Acceptance |
| D. | Investment |
| Answer» C. Acceptance | |
| 72. |
The following is not a type of liability |
| A. | Short term |
| B. | Current |
| C. | Fixed |
| D. | Contingent |
| Answer» A. Short term | |
| 73. |
Whichof the following is most liquid measure of money supply in India |
| A. | M1 |
| B. | M2 |
| C. | M3 |
| D. | M4 |
| Answer» A. M1 | |
| 74. |
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 | |
| 75. |
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 | |
| 76. |
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 | |
| 77. |
Anything used as money must be |
| A. | Fixed in value |
| B. | Fixed in supply |
| C. | Legal tender |
| D. | Readily acceptable |
| Answer» D. Readily acceptable | |
| 78. |
Which of the following can change money supply |
| A. | National Assembly |
| B. | Supreme Court |
| C. | Government |
| D. | State Bank |
| Answer» D. State Bank | |
| 79. |
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 | |
| 80. |
‘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» B. Mac Lagan Committee | |
| 81. |
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» B. Federal structure | |
| 82. |
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» B. three-tier | |
| 83. |
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» A. Urban Cooperative Banks | |
| 84. |
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» D. Ajmer in Rajasthan | |
| 85. |
Co-operative movement originated first in |
| A. | Germany |
| B. | England |
| C. | France |
| D. | Spain |
| Answer» B. England | |
| 86. |
Interest rate of Deposit of cooperative credit societies are fixed by |
| A. | Registrar |
| B. | Government |
| C. | RBI |
| D. | General Body |
| Answer» A. Registrar | |
| 87. |
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» C. long term loans | |
| 88. |
The National Co-operative Development Corporation (NCDC) was established in |
| A. | march 1960 |
| B. | march 1961 |
| C. | March 1962 |
| D. | March 1963 |
| Answer» D. March 1963 | |
| 89. |
Co-operative banks |
| A. | cannot create credit |
| B. | are of ‘unit banking type’ |
| C. | cannotmobilizem\ deposit |
| D. | both (a) and (b |
| Answer» B. are of ‘unit banking type’ | |
| 90. |
The first Development banks in India was |
| A. | IDBI |
| B. | ICICI |
| C. | LIC |
| D. | IFCI |
| Answer» D. IFCI | |
| 91. |
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» C. both medium-term and long-term credits | |
| 92. |
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» C. Industrial Development Bank of India | |
| 93. |
Which of the following is not an affiliate of the Reserve Bank of India? |
| A. | Deposit Insurance Corporation |
| B. | Agriculture Refinance Corporation |
| C. | Industrial Development Bank of India |
| D. | Unit Trust of India |
| Answer» D. Unit Trust of India | |
| 94. |
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» C. Reserve Bank of India | |
| 95. |
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» B. NABARD | |
| 96. |
The Industrial Development Banks of India (IDBI) was set up in |
| A. | June 1960 |
| B. | July 1964 |
| C. | March 1963 |
| D. | July 1961 |
| Answer» B. July 1964 | |
| 97. |
The Industrial Reconstruction Corporation of India (IRCI) was set up in |
| A. | 1971 |
| B. | 1961 |
| C. | 1981 |
| D. | 1951 |
| Answer» A. 1971 | |
| 98. |
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» D. March 1985 | |
| 99. |
The National Small Industries Corporation (NSIC) was set up by Government of India in |
| A. | 1954 |
| B. | 1955 |
| C. | 1956 |
| D. | 1957 |
| Answer» B. 1955 | |
| 100. |
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» A. Reserve Bank of India (RBI | |
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