Indian Economy MCQ-2

Under the minimum reserve system, the Reserve Bank of India as the sole authority of note issue is required to maintain assets worth not less than

(A) 85 crore
(B) 115 crore
(C) 200 crore
(D) 215 crore

Which one of the following is the component of the deposit money with the public?

(A) Demand deposits of banks
(B) Time deposits with banks
(C) Other deposits with RBI
(D) Both ‘a’ and ‘c’

In the parlance, of financial^ investments, the term ‘bear’ denotes

(A) an investor who feels that the price of a particular security is going to fall
(B) an investors who expects the price of particular shares to rise
(C) a shareholder on a bondholder who has an interest in a company, financial or otherwise
(D) Any lender whether by making a loan or buying a bond

Which one of the following agencies funded for the adoption of indigenous technology and previously imported technology in the Indian Economy?

(A) Mutual Funds
(B) Insurance Funds
(C) Venture Capital Funds
(D) Retail Banking

A scheduled bank is the one which is included in the

(A) II Schedule of Banking Regulation Act
(B) II Schedule of Constitution
(C) II Schedule of RBI Act
(D) None of the above

Consider the following statements
1. The rupee coin and half-rupee cc have unlimited legal tenders.
2. The subsidiary coins also unlimited legal tenders. 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 repo rate is the rate at which other banks borrow from the RBI.
2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.
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

The banks are required to maintain certain ratio between their cash in hand total assets. This is called

(D) CF

What is the animal of the insignia of the RBI?

(A) Lion
(B) Tiger
(C) Panther
(D) Elephant

Which one of the following is the ma component of the money supply in t Indian Economy?

(A) Currency component
(B) Deposit component
(C) Treasury bills with public
(D) Both ‘a’ and ‘b’

Which one of the following is traded only in a small area and the currency is not backed by a national government and necessarily legal tender?

(A) Local currency
(B) Soft currency
(C) Commodity currency
(D) None of the above

With regards to Scheduled Commercial banks, consider the following statements about Regional Rural ‘Banks (RRBs) in India
1. RRBs are limited to a specific region comprising one or more districts of a State,
2. RRBs grant direct loans and advances only to small and marginal farmers.
3. The lending rate of the RRBs is always less than the prevailing rates of Indian Commercial Banks.
4. RRBs are functioned under the supervision of Security Exchange Board of India.
Which of the statements given above are correct?

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

Consider the following about the Lead Banks’ role in the Lead Bank Scheme
1. To co-ordinate the Co-operative banks, Commercial banks and other financial institutions in their allotted districts.
2. To survey and Identify the unbanked districts and take initiatives to open bank branches.
3. To estimate the deposits potential and the credit gaps and fill the vacuum in the districts.
Which of the roles given above is/are correct?

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

Consider the following money supplies
1. Narrow money
2. Saving deposits in the post office
3. Time deposits of the public with bar
4. Total post office savings
Which of the money supplies given above are the major components of the Broad Money?

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

Under which of the following circumstances may ‘capital gains’ arise?
1. When there is an increase in the sales of a product.
2. When there is a. natural increase in the value of the property owned.
3. When you purchase a painting and there is a growth in its value due to increase in its popularity.
Select the correct answer using the codes given below

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

Which of the following is not a part of Schedule Banking Structure in India?

(A) Money lenders
(B) Public Sectors Banks
(C) Private Sectors Banks
(D) State Co-operative Banks

Which of the followings is called a ‘Banker’s Cheque’?

(A) Demand Draft
(B) Debit Card
(C) Pay Order
(D) Fixed Deposit