12th Class Economics Money And Banking Question Bank

done MCQs - Banking Total Questions - 33

• question_answer1)
  Which of the following agency is responsible for issuing Rs. 1 currency note in India?
  A)
  RBI done clear
  B)
  NITI Aayog done clear
  C)
  Ministry of Finance          done clear
  D)
  Ministry of Commerce done clear
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• question_answer2)
  Demand deposits include:
  A)
  saving account deposits and fixed deposits done clear
  B)
  saving account deposits and current account deposits done clear
  C)
  current account deposits and fixed deposits done clear
  D)
  All types of deposits done clear
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• question_answer3)
  Repo rate is the rate at which:
  A)
  commercial banks purchase government securities from Central Bank done clear
  B)
  commercial banks can take loans from the Central Bank done clear
  C)
  commercial banks can keep their deposits with Central Bank done clear
  D)
  short-term loans are given by commercial banks done clear
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• question_answer4)
  Which of the following is not a quantitative method of credit control?
  A)
  Open market operation done clear
  B)
  Margin requirement done clear
  C)
  Variable reserve ratio done clear
  D)
  Bank rate policy done clear
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• question_answer5)
  Credit creation by commercial banks is determined by:
  A)
  CRR done clear
  B)
  SLR done clear
  C)
  Initial deposit done clear
  D)
  All of these done clear
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• question_answer6)
  The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called:
  A)
  SLR done clear
  B)
  CRR done clear
  C)
  LRR done clear
  D)
  Deposit ratio done clear
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• question_answer7)
  Which of the following is not the function of Central Bank?
  A)
  Banking facilities to government done clear
  B)
  Lending to government done clear
  C)
  Banking facilities to public done clear
  D)
  Lending to commercial bank done clear
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• question_answer8)
  In order to encourage investment in the economy, the Central Bank may:
  A)
  reduce CRR done clear
  B)
  increase CRR done clear
  C)
  sell government securities in the open market done clear
  D)
  increase in bank rate done clear
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• question_answer9)
  If LRR = 20%, the value of money multiplier would be:
  A)
  2 done clear
  B)
  3 done clear
  C)
  5 done clear
  D)
  4 done clear
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• question_answer10)
  Repo rate relates to:
  A)
  short-term borrowings by commercial banks done clear
  B)
  long-term borrowings by commercial banks done clear
  C)
  disinvestments done clear
  D)
  dissavings done clear
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• question_answer11)
  Under SLR, commercial banks are required to keep a fraction of.............. in the form of liquid assets.
  A)
  total deposits done clear
  B)
  term deposits done clear
  C)
  Both [a] and [b] done clear
  D)
  current deposits done clear
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• question_answer12)
  The main aim of monetary policy is:
  A)
  to bring stability in the economy done clear
  B)
  banking facilities to public done clear
  C)
  to increase trade surplus done clear
  D)
  to generate greater tax revenue done clear
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• question_answer13)
  To reduce credit availability in the economy, the Central Bank may...............      (CBSE SQP 2020-21)
  A)
  buy securities in the open market done clear
  B)
  sell securities in the open market done clear
  C)
  reduce reserve ratio done clear
  D)
  reduce repo rate done clear
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• question_answer14)
  The rate at which the Central Bank lends money to commercial banks:
  A)
  CRR done clear
  B)
  SLR done clear
  C)
  Bank Rate done clear
  D)
  All of these done clear
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• question_answer15)
  Deposit or Money Multiplier is:
  A)
  \[\frac{1}{CRR}\] done clear
  B)
  \[\frac{1}{SLR}\] done clear
  C)
  \[\frac{1}{LRR}\] done clear
  D)
  None of these done clear
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• question_answer16)
  To control excess demand, CRR is:
  A)
  decreased done clear
  B)
  increased done clear
  C)
  does not change done clear
  D)
  None of these done clear
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• question_answer17)
  ............... nurtures the market for govt. securities in India
  A)
  Commercial Bank done clear
  B)
  Central Bank done clear
  C)
  World Bank done clear
  D)
  None of these done clear
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• question_answer18)
  The function performed by Central Bank:
  A)
  currency authority done clear
  B)
  banker to the govt. done clear
  C)
  banker to commercial banks done clear
  D)
  All of these done clear
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• question_answer19)
  Higher the legal reserve ratio ............... will be the credit creation.
  A)
  higher done clear
  B)
  lower done clear
  C)
  constant done clear
  D)
  None of these done clear
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• question_answer20)
  Who regulates money supply?
  A)
  Government of India done clear
  B)
  Reserve Bank of India done clear
  C)
  Commercial Banks done clear
  D)
  Planning Commission done clear
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• question_answer21)
  If CRR =5% and SLR =20%, money multiplier is:
  A)
  20 done clear
  B)
  4 done clear
  C)
  5 done clear
  D)
  None of these done clear
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• question_answer22)
  RBI is the sole authority to issue currency, to ensure:
  A)
  uniformity in note circulation done clear
  B)
  build up public faith in the currency system done clear
  C)
  govt. control over the money supply done clear
  D)
  All of the above done clear
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• question_answer23)
  To control inflation RBI would increase:
  A)
  Bank Rate done clear
  B)
  Repo Rate done clear
  C)
  Reverse Repo Rate done clear
  D)
  All of these done clear
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• question_answer24)
  Identify qualitative instrument to check money supply:
  A)
  CRR                              done clear
  B)
  SLR done clear
  C)
  Open market operation done clear
  D)
  Moral suasion done clear
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• question_answer25)
  ................... issues Rs. 1 currency notes in India.
  A)
  Ministry of Govt. and Consumer Services done clear
  B)
  Ministry of Finance done clear
  C)
  RBI done clear
  D)
  Commercial banks done clear
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• question_answer26)
  Identify a commercial bank from the following:
  A)
  LIC done clear
  B)
  UTI done clear
  C)
  SBI done clear
  D)
  None of these done clear
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• question_answer27)
  Identify an instrument of monetary policy:
  A)
  Govt. revenue done clear
  B)
  Govt. expenditure done clear
  C)
  Bank deposits done clear
  D)
  Bank rate done clear
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• question_answer28)
  ........... refers to minimum percentage of deposits of commercial banks to be kept with RBI.
  A)
  SLR done clear
  B)
  CRR done clear
  C)
  Repo Rate done clear
  D)
  Reverse Repo Rate done clear
  View Solution play_arrow

• question_answer29)
  Which of the following is not the function of the Central Bank?
  A)
  Banking facilities to government done clear
  B)
  Banking facilities to public done clear
  C)
  Lending to government done clear
  D)
  Lending to commercial banks done clear
  View Solution play_arrow

• question_answer30)
  The main aim of monetary policy is...............
  A)
  to bring price stability in the economy done clear
  B)
  employment generation in the country done clear
  C)
  to increase trade surplus done clear
  D)
  to generate greater tax revenue done clear
  View Solution play_arrow

• question_answer31)
  The process of buying and selling of securities by the Central Bank of a country is known as...................
  A)
  Margin Requirement done clear
  B)
  Open Market Operations done clear
  C)
  Cash Reserve Ratio done clear
  D)
  Statutory Liquidity Ratio done clear
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• question_answer32)
  Under statutory liquidity ratio, commercial banks are required to keep a fraction of................... in the form of liquid assets.
  A)
  total deposits done clear
  B)
  total demand and term deposits done clear
  C)
  Both [a] and [b] done clear
  D)
  current deposits done clear
  View Solution play_arrow

• question_answer33)
  RBI regulates money supply by controlling the:
  A)
  stock of high powered money done clear
  B)
  bank rate done clear
  C)
  reserve requirements of the commercial banks done clear
  D)
  All of the above done clear
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