Banking Sector: Money & Banking- 2 - Free MCQ Test with solutions for UPSC

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

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

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

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

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

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

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

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.

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

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

• Statement i – Correct:
  Reducing indirect taxes (like GST, excise duty) lowers the cost of goods and services, which can help control inflation by reducing price pressures.

• Statement ii – Correct:
  In India, there is generally considered to be a trade-off between growth and inflation, especially in the short run. Higher growth can lead to demand-side inflation, while strict anti-inflationary measures may slow growth (often explained using the Phillips Curve framework).

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

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

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.

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.

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

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

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

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

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