Banking Sector - Money Supply And Banks - 2


20 Questions MCQ Test Economy Traditional for UPSC (Civil Services) Prelims | Banking Sector - Money Supply And Banks - 2


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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:

The base year of All-India WPI was revised from 2004-05 to 2011-12 on 12 May 2017 to align it with the base year of other macroeconomic indicators like the Gross Domestic Product (GDP) and Index of Industrial Production (IIP). The current series is the seventh revision.

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 Current series of CPI(IW) on base 1982=100 replacing the old series of 1960 base with effect from October, 1988, covers industrial workers employed in any one of the seven sectors namely factories, mines, plantation, railways, public motor transport undertakings, electricity generation and distribution

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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