Banking Sector: Money & Banking- 2


20 Questions MCQ Test Indian Economy for UPSC CSE | Banking Sector: Money & Banking- 2


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Attempt Banking Sector: Money & Banking- 2 | 20 questions in 20 minutes | Mock test for UPSC preparation | Free important questions MCQ to study Indian Economy for UPSC CSE for UPSC Exam | Download free PDF with solutions
QUESTION: 1

Which of the following banks were nationalized in 1980?

Solution:

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

QUESTION: 2

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.

Solution:

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

QUESTION: 3

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

Solution:

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

QUESTION: 4

Regional Rural Banks work at

Solution:

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

QUESTION: 5

Which of the following is a subsidiary of SBI?

Solution:

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

QUESTION: 6

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

Solution:

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

QUESTION: 7

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

Solution:

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

QUESTION: 8

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

Solution:

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.

QUESTION: 9

Which of the following is a reason for inflation?

Solution:

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

QUESTION: 10

Which of the following is an effect of inflation?

Solution:

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

QUESTION: 11

Consider the following statements and identify the right ones.
i. Government can reduce indirect taxes to control inflation
ii. There is trade-off between growth and inflation in India

Solution:

Growth cannot be sustained in inflationary situation for a long time and inflation is bound to be high with high growth rates.

QUESTION: 12

Which of the following is not a reason for inflation?

Solution:

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

QUESTION: 13

Which of the following can be undertaken to control inflation?

Solution:

Inflation can be controlled using monetary, fiscal and other measures.

QUESTION: 14

Consider the following statements and identify the right ones.i. For measuring overall inflation in the economy, CPI is used.ii. WPI was first published in 1942 for 23 commodities

Solution:

WPI was first published in 1942 for 23 commodities. The base year used for WPI is 2004-05, based on the recommendations of Abhijit Sen Committee.

QUESTION: 15

The base year used for WPI is

Solution:

WPI data is published by the Office of Economic Adviser, Ministry of Commerce and Industry, while CPI data is published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The base year for WPI is 2011-12 while the base year for CPI is 2012.

QUESTION: 16

Consider the following statements and identify the right ones.
i. There are 676 items divided into 3 parts in the WPI
ii. All the 3 parts are given equal weightage

Solution:

Primary articles constitute 20.12 weightage, fuel has weightage of 14.91 while manufactured items have 64.97 weightage.

QUESTION: 17

Which group constitutes maximum weightage in WPI?

Solution:

Primary articles constitute 20.12 weightage, fuel has weightage of 14.91 while manufactured items have 64.97 weightage.

QUESTION: 18

The base year to calculate CPI-IW is

Solution:

The labour ministry has recently revised the base year for CPI-IW to 2016 from 2001.

QUESTION: 19

The base year to calculate CPI-AL is

Solution:

The base year to calculate CPI-AL is 1986-87 and 260 items are included in the index.

QUESTION: 20

The base year to calculate CPI-UNME is

Solution:

The base year to calculate CPI-UNME is 1984-85. 180 items are included in the index.

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