Economy UPPSC,SSC,NDA,Railways,UPSC,Civils,MPSC,WBPSC,BPSC

Indian Economy MCQ-4

Select the incorrect one in the conditions of depreciating rupee from the give list of the situations

(A) Exports become competitive in the global market
(B) import substitution becomes impossible
(C) Costlier imports results into higher prices propelling further depreciation
(D) Both ‘a’ and ‘b’

Which one of the following Banks can be included in the Scheduled Commercial Banking System of India?

(A) Regional Rural Banks
(B) Private Sector Banks
(C) Foreign Banks in India
(D) All of the above

Consider the followings pairs
Large Bank –Country of Origin
1. ABN Amro Bank : Netherlands
2. Barclays Bank : UK
3. Kookmin Bank : South Korea
Which of the statements given above is/are correct?

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

Which one of the following pair is correctly matched?

(A) MO : Reserve Money
(B) M1 : Broad Money
(C) M2 : Narrow Money
(D) None of the above

Consider the following statements regarding India’s Minimum Reserve system and select the incorrect one/one’s using the codes given below
1. In minimum reserve system, RBI had to keep a minimum reserve of gold worth ? 115 crore and rest in Indian rupees.
2. The minimum Requirement of Foreign securities was diluted when minimum reserve system was launched.

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

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

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

Which one among the following Nationalised Banks is the most latest in the term of establishment?

(A) Punjab National Bank
(B) Punjab and Sind Bank
(C) Bank of Baroda
(D) Oriental Bank of Commerce

Consider the following
1. Savings account
2. Bank time deposits
3. Government treasury securities
4. Foreign currencies Which of the statements given above is/are correct?

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

If the RBI decides to adopt an ‘expansionist’ monetary policy, which of the following it would not do?
1. Cut CRR and optimize SLR
2. Increase MSFR (Marginal Standing Facility Rate)
3. Cut bank rate and increase Reverse Repo Rate

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

Which one of the following committee was constituted by the RBI to study issues and concerns in the micro-finance sector?

(A) M Narsimham Commitee
(B) S Janikiraman Committe
(C) Chakarvarti Committee
(D) YH Malegam Committee

Many a time we read in the newspaper the term ‘Hot Money’. Which of the following is the correct definition of Hot Money?

(A) This is the fund which is dumped into a country to get the advantage of a favourable interest rate and hence bring high returns
(B) This is the fund which is provided by a bank in US Dollar at very short notice at a very high rate of interest – and for a longer period of repayment
(C) This is the fund which is pushed into market through Hawala or some other such illegal method and is sometime referred to also as Black Money
(D) Both ‘a’ and ‘c’

Consider the following money supplies
1. Coins and currency with the public.
2. Demand deposits of the public with banks,
3. Post office saving deposits.
4. Other deposits of with RBI.
Which of the supplies given above are included in the calculation of the Narrow Money?

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

Which one of the following currencies is used by RBI to construct the Nominal Effective Exchange Rate {NEER} and Real Effective Exchange Rate {REER} of Indian Currency?

(A) Japanese Yen
(B) Chinese Renminbi
(C) Pound Sterling
(D) All the above

Which of the following is the most important component of the liabilities of Commercial Bank in India?

(A) Time deposits
(B) Deman deposits
(C) Inter-bank liabilities
(D) Other borrowings

The major aim of devaluation is to

(A) encourage exports
(B) encourage imports
(C) encourage both exports and imports
(D) discourage both exports and imports

Which one among the following is the source of the Reserve Money (MO) in India?

(A) Net foreign exchange assets of RBI
(B) Government’s currency liabilities to the public
(C) Net non-monetary liabilities of the RBI
(D) All of the above

Consider the following statements
1. Domestic debt constitutes more than three-fourth of the total central government sovereign debt of India.
2. The average maturity of the Indian Government dated securities is nearly ten years.
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