Economy KPSC,NDA,SSC,TNPSC,SBI,IBPS,UPSC,IAS,UPPSC,MPSC

Indian Economy MCQ-8

When the Reserve Bank of India announced an increased of the Cash Reserve Ratio (CRR), what does it means?

(A) The Commercial Banks will have less money to lend
(B) The Reserve Bank of India will have less money to lend
(C) The Union Government will have less money to lend
(D) None of the above

Consider the following statements
1. Allahabad Bank was the first bank to be established exclusively by Indians.
2. Seven banks forming subsidiary of State Bank of India was nationalised in
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Which one of the following markets is not the Capital Market in the India Economy?

(A) Gilt-edge market
(B) Stock Exchange
(C) Mutual funds
(D) Call money market

Consider the following objectives
1.To secure regional co-operation as regards the settlement of monetary transactions among the members of the Union.
2. To provide a system for clearing payments among the member countries on a multilateral basis. Which of the. objectives given above is/are the primary objective of Asian Clearing Union (ACU)?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Which of the following terms indicates a mechanism used by commercial banks for providing credit to Government?

(A) Cash Credit Ratio
(B) Debt Service Obligation
(C) Liquidity Adjustment Facility
(D) Statutory Liquidity Ratio

Consider the following statements
1.Global Trust Bank (GTB) has been amalgamated with the Punjab National Bank.
2. The second report of the Kelkar Committee dealing with direct and indirect taxes has maintained its original recommendation including the abolition of exemptions relating to housing loans.
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Which of the following statements is correct with reference to FEMA in India?

(A) The Foreign Exchange Regulating Act (FER was replaced by Foreign Exchange Management Act (FEM in the year 2001
(B) , Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
(C) As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rule
(D) All of the above

Which one of the following is correct about the ‘Commercial Papers (CP s)’ in the Indian money market?

(A) It is issued by Indian Commercial Banks
(B) It is issued. by the Central Government
(C) It is issued by the companies with a net worth more than 5 crcre
(D) It is issued by the companies with a net worth less than 50 lakh

Consider the following statements
1. Integrated Rural Development Programme (IRDP) was launched to lift the target groups above the below poverty line.
2. The IRDP was started as an initiative of the Lead Bank Scheme to create additional employment opportunities in rural areas.
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Consider the following statements
1. The maximum limit for house holding of India promoters in private sectors banks in India is 49% of the paid up capital.
2. Foreign Direct Investment (FDI) up to 49% from all sources is permitted in private sector banks in India under the automatic route.
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Consider the following statements
I. Indian Depository Receipt is an instrument denominated in Indian Rupees in the form of a depository receipt created by the custodian of securities registered with the Securities and Exchange Board of India against the underlying equity of issuing company.
2. Standard Chartered PLC became the first global company to file for an issue of Indian depository receipts in India.
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Consider the following functions of the LAP in Indian Monetary Policy
1. It influences the volume of liquidity in the money market.
2. It stabilizes the short term rate of interest or the call rates. Which of the functions given above is/are the main functions of the LAP?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Consider the following statements
1. Indian money market is the market of short term funds,
2. The private sector banks are more in number than the public sector banks of the Indian scheduled commercial bank.
Which of the statements given above is/are correct?

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Consider the following events in the Indian Economy
1. First phase of Nationalization of 16-Banks.
2. Establishment of Narshimhan Committee on the Banking System.
3. Enactment of FEMA Act in India.
4. Establishment of EXIM Bank in India.
Which of the statements given above is/are correct?

(A) 1,3, 4 and 2
(B) 1,4, 2 and 3
(C) 1, 3, 2, and 4
(D) 1, 4, Sand 2

In which one of the following Five Year Plan of the Indian Economy did the Security Exchange Board of India (SEBI) make a statutory Institution?

(A) Fourth Five Year Plan
(B) Fifth Five Year Plan
(C) Sixth Five Year Plan
(D) None of the above

The Central Banks of a country is the member of the Asian Clearing Union (ACU). Which one of the following countries is not the member of the ACU?

(A) Bangladesh
(B) Bhutan
(C) Myanmar
(D) Thailand

Which of the following is not the function of Reserve Bank of India?

(A) Provide Credit facility to the general public
(B) Keep government money in various account heads
(C) Frame Monetary and Credit Policy
(D) All are RBI’s functions