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Banking Sector: Money & Banking- 1


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20 Questions MCQ Test Famous Books for UPSC Exam (Summary & Tests) | Banking Sector: Money & Banking- 1

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Banking Sector: Money & Banking- 1 - Question 1

Who issues metallic coins in India?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 1

The Government of India issues metallic coins in India. Coins, paper currency and deposits are the components of money supply in India.

Banking Sector: Money & Banking- 1 - Question 2

Which of the following is issued by RBI?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 2

Currency notes are issued by RBI. The Government of India issues metallic coins in India.

Banking Sector: Money & Banking- 1 - Question 3

Consider the following statements and identify the right ones.
i. Deposits are created by banks and financial institutions.
ii. They constitute the major source of money supply in Indi

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 3

Coins, paper currency and deposits are the components of money supply in India.

Banking Sector: Money & Banking- 1 - Question 4

Which of the following about money supply measure adopted in 1977 is correct?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 4

These are the measures of money supply adopted by RBI in 1977.

Banking Sector: Money & Banking- 1 - Question 5

Which of the following is most liquid measure of money supply in India?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 5

M1= cash with the public+ demand deposits with banks+ other deposits with RBI.

Banking Sector: Money & Banking- 1 - Question 6

 Which of the following is known as broad money?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 6

M3 is known as broad money as more items are included in this measure when compared to M1 which is known as narrow money.

Banking Sector: Money & Banking- 1 - Question 7

Which of the following about money supply measures adopted in 1998 is wrong?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 7

M4= M3+ all deposits with post office savings banks excluding National Savings Certificate.

Banking Sector: Money & Banking- 1 - Question 8

Consider the following statements and identify the right ones.
i. Data on Mo are published on monthly basis
ii. Data on M1 and M3 are available on weekly basis

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 8

Data on Mo are published by the RBI on weekly basis and Data on M1 and M3 are available on fortnightly basis.

Banking Sector: Money & Banking- 1 - Question 9

Consider the following statements and identify the right ones.
i. Data on liquidity aggregates L1 and L2 are published weekly
ii. Data on L3 are published once in a quarter.

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 9

Data on liquidity aggregates L1 and L2 are published on a monthly basis.

Banking Sector: Money & Banking- 1 - Question 10

Which of the following banks was not nationalized in 1969?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 10

Vijaya Bank was nationalized in 1980 with 5 other banks. In 1969, 14 banks were nationalized.

Banking Sector: Money & Banking- 1 - Question 11

Which of the following banks were nationalized in 1980?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 11

The other 3 banks are Punjab and Sind Bank, New bank of India and Oriental Bank of Commerce.

Banking Sector: Money & Banking- 1 - Question 12

Consider the following statements and identify the right ones.
i. Post nationalization, banks were supposed to open more branches in rural and semi-urban areas
ii. Banks had to provide credit facilities to areas that come under priority sector.

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 12

Post nationalization, banks were supposed to open more branches in rural and semi-urban areas in order to collect savings from these areas.

Banking Sector: Money & Banking- 1 - Question 13

Consider the following statements and identify the right ones.
i. The lead bank scheme owes its origin to Nariman Committee
ii. Under this scheme, SBI and its subsidiaries only were given the responsibility of development of districts

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 13

Under this scheme, SBI and its subsidiaries, 14 nationalised banks as well as 3 private banks were given the responsibility of development of districts.

Banking Sector: Money & Banking- 1 - Question 14

Regional Rural Banks work at

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 14

The SBI and its subsidiaries, 14 nationalised banks as well as 3 private banks were given the responsibility of development of districts.

Banking Sector: Money & Banking- 1 - Question 15

Which of the following is a subsidiary of SBI?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 15

SBI has 5 subsidiaries now. The other 2 are State Bank of Bikaner and Jaipur and State Bank of Travancore.

Banking Sector: Money & Banking- 1 - Question 16

In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 16

The paid up capital should be increased to 300 crore rupees in 3 years of operation.

Banking Sector: Money & Banking- 1 - Question 17

In 2001, RBI issued a set of guidelines for private sector. Which of the following is true?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 17

New banks are supposed to keep minimum 10% of CAR from the beginning.

Banking Sector: Money & Banking- 1 - Question 18

In 2001, RBI issued a set of guidelines for private sector. Accordingly which bank was issued licence?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 18

In 2001, RBI issued a set of guidelines for private sector. Accordingly only 2 banks were given licence then- YES Bank and Kotak Mahindra Bank.

Banking Sector: Money & Banking- 1 - Question 19

Which of the following is a reason for inflation?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 19

Inflation refers to rise in the general price level in the economy. Various demand and supply side factors cause inflation.

Banking Sector: Money & Banking- 1 - Question 20

Which of the following is an effect of inflation?

Detailed Solution for Banking Sector: Money & Banking- 1 - Question 20

As a result of inflation, some sections like producers or big landlords gain due to the ownership of assets, income inequality increases.

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