Indian Economy MCQ-9

Consider the following statements
1. Reserved Bank of India was nationalized on 1st January,
2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.
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. Foreign Exchange Management Act (FEMA) was passed in 1991 to replace Foreign Exchange Regulation Act.
2. FEMA serves to make transactions for external trade (exports and imports) easier.
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. Certificates of deposits are the very important instrument of the Indian money market.
2. Certificates of deposits are generally issued by the union government with collaboration with certain states.
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. Primary Agricultural Credit Societies are the grass-root level arms of the short term cooperative credit structure.
2. Primary Agricultural Credit Societies can be started with ten or more people belonging to a village.
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 Public Sector Bank’s emblem figures a dog and the words ‘faithful friendly’ in it?

(A) Punjab National Bank
(B) Syndicate Bank
(C) Oriental Bank of India
(D) State Bank of India

Which one of the following agencies in the Indian Capital market has authority to regulate the Mutual fund markets in India?

(A) IRDA
(B) SEBl
(C) RBI
(D) IBPS

Which one of the liquidity aggregates as per the recommendations of the Working Group on Money Supply: Analytics and Methodology of Compilation, includes the Public Deposits of Non-banking Financial Companies?

(A) L1
(B) L2
(C) L3
(D) None of these

Which one of the following is the correct description about the Bank Rate in the Indian Money market?

(A) Rate of interest charged by commercial banks from the borrowers
(B) Rate of interest which commercial banks discounted bills of their borrowers
(C) Rate of interest allows by commercial banks on their deposits
(D) Rate at which RBI purchase or rediscounts bill of exchange of commercial banks

In India, the first bank of limited liabilities managed by Indians and founded in 1881 was

(A) Hindustan Commercial Bank
(B) Oudh Commercial Bank
(C) Punjab National Bank
(D) Punjab and Sind Bank

Consider the following statements in India, Taxes on transaction in Stock Exchanges and Future Markets are
1. Levied by the Union
2. Collected by the States
Which of the statements given above is/are correct?

(A) Only 1 s
(B) Only 2
(C) Both 1 and 2
(D) None of the above

Consider the following instruments
2.Credit Authorization Scheme
1. Credit Monitoring Arrangement
3. Cash Reserve Requirement
4. Statutory Liquidity Requirement Which of the instruments given above are used in the Selective Credit Control in India?

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

Which one of the following is the basic objective for the setting up of Regional Rural Banks (RRBs) in India?

(A) Development of more diverse banking systems in Indian money market
(B) Diversification of scheduled commercial banking systems in India to tap the deposit potential of rural areas
(C) Development of rural area by providing credits to agriculture, trade, commerce and other productive activities in rural areas
(D) Both ‘a’ and ‘b’

In India, the interest rate on savings accounts in all the nationalised commercial banks is fixed by

(A) Union Minister of Finance
(B) Union Finance Commission
(C) Indian Bank’s Association
(D) None of the above

With reference to Indian Capital market, consider the following statements
1. CRISIL was set up in the Eight Five Year Plan.
2. CRISIL rates the debt instruments of the public sectors.
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 rates is the rate at which banks park their funds with the Central Bank?

(A) Repo Rate
(B) Bank Rate
(C) Prime Lending Rate
(D) Reverse Repo Rate

Which one of the following is correctly matched?
Bank- Headquarter
1. Federal Bank Limited : Kerala
Dhanlaxmi Bank Limited : Maharashtra
3. Industrial Bank Limited : Delhi
Select the correct answer using the codes given below

(A) 1 and 2
(B) Only 2
(C) 2 and 3
(D) Only 1

Consider the following events in the Indian Financial System
1. Nationalization of Reserve Bank o India.
2. Foundation of Punjab National Bank
3. Nationalization of State Bank of India
4. Establishment of NABARD.
Arrange the events given above chronologically and select the correct answer using the codes given below

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