question 1.
what is the defect of the barter system?
(a) lack of double coincidence of wants
(b) difficulty in the measurement of value
(c) difficulty in store of value
(d) all of these
answer
answer: (d) all of these
question 2.
which of the following is the credit money?
(a) cheque and draft
(b) promissory note
(c) exchange note
(d) all of these
answer
answer: (d) all of these
question 3.
which among the following is the near money?
(a) bonds
(b) insurance policy
(c) securities
(d) all of these
answer
answer: (d) all of these
question 4.
which of the following is the feature of money?
(a) general acceptability
(b) homogeneous unit
(c) liquid asset
(d) all of these
answer
answer: (d) all of these
question 5.
in order to encourage investment in the economy, the central bank may ________
(a) reduce cash reserve ratio
(b) increase cash reserve ratio
(c) sell government securities in the open market
(d) increase bank rate
answer
answer: (a) reduce cash reserve ratio
question 6.
institution that accepts deposits for lending purpose is known as __________
(a) commercial bank
(b) central bank
(c) government
(d) public
answer
answer: (a) commercial bank
question 7.
which of the following is the function of a commercial bank?
(a) accepting deposits
(b) credit creation
(c) agency function
(d) all of these
answer
answer: (d) all of these
question 8.
the central bank can increase the availability of credit by:
(a) rasing repo rate
(b) raising reverse repo rate
(c) buying government securities
(d) selling government securities
answer
answer: (d) selling government securities
question 9.
giving permission to withdraw money by an amount more than deposited to is known as _________
(a) advance
(b) overdraft
(c) loan
(d) none of these
answer
answer: (b) overdraft
question 10.
what are the alternative measures of money supply in india?
(a) m1
(b) m2
(c) m3 and m4
(d) all of these
answer
answer: (d) all of these
question 11.
who circulates all mint and one rupee not in india?
(a) ministry of finance
(b) rbi
(c) ministry of external affairs
(d) state government
answer
answer: (a) ministry of finance
question 12.
which of the following is the narrow measure of the money supply?
(a) m2
(b) m3
(c) m1
(d) m4
answer
answer: (c) m1
question 13.
when was the minimum reserve system started in india?
(a) 1947
(b) 1948
(c) 1951
(d) 1957
answer
answer: (d) 1957
question 14.
which is the most liquid measure of the money supply?
(a) m4
(b) m3
(c) m2
(d) m1
answer
answer: (d) m1
question 15.
high powered money includes:
(a) c + dd + od
(b) c + r + od
(c) c + r + td
(d) c + dd + td
answer
answer: (b) c + r + od
question 16.
indian monetary system is based on ________
(a) paper standard
(b) metallic standard
(c) gold standard
(d) credit money standard
answer
answer: (a) paper standard
question 17.
which of the following is the apex bank of india?
(a) rbi
(b) sbi
(c) sbp
(d) pnb
answer
answer: (a) rbi
question 18.
who has the right of note issue?
(a) central bank
(b) commercial bank
(c) government
(d) co-operative bank
answer
answer: (a) central bank
question 19.
which of the following is the function of a central bank?
(a) issue of notes
(b) banker to the government and banks
(c) supply and control of money
(d) all of these
answer
answer: (d) all of these
question 20.
the ratio of total deposits that a commercial bank has to keep with rbi is called:
(a) statutory liquidity ratio
(b) deposit ratio
(c) cash reserve ratio
(d) legal reserve ratio
answer
answer: (c) cash reserve ratio
question 21.
demand deposits include
(a) saving account deposits and fixed deposits
(b) saving account deposits and current account deposits
(c) current account deposits and fixed deposits
(d) all type of deposits
answer
answer: (b) saving account deposits and current account deposits
question 22.
what are the necessary conditions of the barter system?
(a) limited needs
(b) limited exchange area
(c) economically backward society
(d) all the above
answer
answer: (d) all the above
question 23.
what are the advantages of the barter system?
(a) simple system
(b) more mutual co-operation
(c) no economic disparities
(d) all the above
answer
answer: (d) all the above
question 24.
which one is the difficulty of the barter system?
(a) lack of double coincidence
(b) difficulty of division of the goods
(c) lack of general acceptable measure of value
(d) all the above
answer
answer: (d) all the above
question 25.
which is the correct order of money evolution?
(a) commodity money, paper money, metal money
(b) commodity money, metal money, paper money, credit money
(c) credit money, metal money, paper money
(d) none of the above
answer
answer: (b) commodity money, metal money, paper money, credit money
question 26.
“money is what money does.” who said it?
(a) hartley withers
(b) hawtrey
(c) thomas
(d) keynes
answer
answer: (a) hartley withers
question 27.
which one is included in the primary function of money?
(a) medium of exchange
(b) measure of value
(c) both (a) and (b)
(d) store of value
answer
answer: (c) both (a) and (b)
question 28.
which one is included in the secondary function of money?
(a) to make deferred payments
(b) store of value
(c) transfer of value
(d) all of these
answer
answer: (d) all of these
question 29.
“money is a pivot around which the whole economy clusters.” who said it?
(a) keynes
(b) robertson
(c) marshall
(d) hawtrey
answer
answer: (c) marshall
question 30.
the function of money is:
(a) medium of exchange
(b) measure of value
(c) store of value
(d) all the above
answer
answer: (d) all the above
question 31.
the functions of money include:
(a) value determination
(b) store of value
(c) means of exchange
(d) all of these
answer
answer: (d) all of these
question 32.
money is a matter which is:
(a) a measure of value
(b) accepted as a means of exchange
(c) used to store wealth
(d) all of these
answer
answer: (d) all of these
question 33.
by supply of money we mean :
(a) money deposited in the bank
(b) money available with the public
(c) deposits with post office savings bank
(d) all of these
answer
answer: (d) all of these
question 34.
which of the following is not a function of money?
(a) medium of exchange
(b) price stability
(c) store of value
(d) unit of account
answer
answer: (b) price stability
question 35.
which one is the bank of the public?
(a) commercial bank
(b) central bank
(c) both (a) and (b)
(d) none of the above
answer
answer: (a) commercial bank
question 36.
the primary function of commercial bank is?
(a) accepting deposits
(b) advancing loans
(c) credit creation
(d) all of these
answer
answer: (d) all of these
question 37.
deposits accepted by the commercial banks:
(a) current deposits
(b) saving deposits
(c) time deposits
(d) all of these
answer
answer: (d) all of these
question 38.
what type of loan is advanced by commercial banks?
(a) cash credit
(b) overdraft
(c) loan and advance
(d) all of these
answer
answer: (d) all of these
question 39.
which function is the secondary function of commercial banks?
(a) agency function
(b) general utility function
(c) social function
(d) all of these
answer
answer: (d) all of these
question 40.
which is the agency function of commercial banks?
(a) advancing loans
(b) accepting deposits
(c) act as trustee
(d) locker facility
answer
answer: (c) act as trustee
question 41.
credit multiplier is:
(a) 1crr
(b) cash×1 crr
(c) cash x crr
(d) none of these
answer
answer: (a) 1crr
question 42.
credit money is increased when crr:
(a) falls
(b) rises
(c) both (a) and (b)
(d) none of these
answer
answer: (a) falls
question 43.
the full form of atm is:
(a) any time money
(b) all time money
(c) automated teller machine
(d) both (a) and (b)
answer
answer: (c) automated teller machine
question 44.
the main function of a commercial bank is:
(a) credit control
(b) loaning to other banks
(c) accept deposits from customers
(d) all the above
answer
answer: (c) accept deposits from customers
question 45.
what is the central bank of india?
(a) commercial bank
(b) central bank
(c) private bank
(d) none of these
answer
answer: (a) commercial bank
question 46.
commercial banks:
(a) issue currency notes
(b) accepts deposits from customers
(c) provide loans to customers
(d) only (b) and (c)
answer
answer: (d) only (b) and (c)
question 47.
what is true for the central bank?
(a) apex bank of the country
(b) ownership of the government
(c) regulates the entire banking system in the country
(d) all the above
answer
answer: (d) all the above
question 48.
central bank of india is:
(a) reserve bank of india
(b) state bank of india
(c) central bank of india
(d) bank of india
answer
answer: (a) reserve bank of india
question 49.
which of the following is the function of the central bank?
(a) monopoly of note issue
(b) banker of the government
(c) custodian of foreign exchange reserves
(d) all the above
answer
answer: (d) all the above
question 50.
which type of currency is issued by central bank?
(a) currency
(b) credit money
(c) coins
(d) all of these
answer
answer: (a) currency
question 51.
which is the major objective of credit control?
(a) to maintain price stability
(b) to stabilize exchange rate
(c) to production and employment
(d) all the above
answer
answer: (b) to stabilize exchange rate
question 52.
which one is true?
(a) bank rate is a rate at which central bank is ready to give credit to commercial banks
(b) bank rate and interest rates are different
(c) bank rate is the discount rate of the central bank
(d) all the above
answer
answer: (d) all the above
question 53.
which is not a quantitative method of credit control?
(a) bank rate
(b) moral suasion
(c) open market operations
(d) change in crr
answer
answer: (b) moral suasion
question 54.
every bank is required to maintain a fixed percentage of its assets in the form of cash is called:
(a) cash reserve ratio
(b) statutory liquidity ratio
(c) both (a) and (b)
(d) none of the above
answer
answer: (b) statutory liquidity ratio
question 55.
reserve bank of india was established in :
(a) 1947
(b) 1935
(c) 1937
(d) 1945
answer
answer: (b) 1935
question 56.
monetary policy is related with:
(a) public expenditure
(b) taxes
(c) public debt
(d) open market operations
answer
answer: (d) open market operations
question 57.
which of the following issue paper currency in the country?
(a) commercial bank
(b) central bank
(c) world bank
(d) industrial bank
answer
answer: (b) central bank
question 58.
the central bank controls credit through:
(a) bank rate
(b) open market
(c) crr
(d) all the above
answer
answer: (a) bank rate
question 59.
which of the following is a qualitative method of credit control?
(a) variation in cash reserve ratio of banks
(b) restriction on consumer credit
(c) open market operations
(d) variation in bank rate
answer
answer: (b) restriction on consumer credit
question 60.
the major objectives of monetary policy is/are:
(a) increase in output and employment
(b) stability in the foreign exchange rate
(c) price stability
(d) all of these
answer
answer: (d) all of these
question 61.
who regulates the money supply?
(a) govt, of india
(b) reserve bank of india
(c) commercial bank
(d) planning commission
answer
answer: (b) reserve bank of india
question 62.
with which narsimham committee is related to?
(a) tax reforms
(b) banking reforms
(c) agriculture reforms
(d) infrastructure reforms
answer
answer: (b) banking reforms
question 63.
in which year the second narsimham committee was constituted?
(a) 1978
(b) 1991
(c) 1997
(d) 1998
answer
answer: (d) 1998
question 64.
banking ombudsman scheme was announced in the year:
(a) 1990
(b) 1995
(c) 1997
(d) 2000
answer
answer: (b) 1995
question 65.
which was included in the purview of the banking ombudsman scheme?
(a) all scheduled banks
(b) co-operative banks
(c) commerical banks
(d) all of these
answer
answer: (d) all of these
question 66.
which committee was constituted for suggesting consumer service improvements in banks?
(a) raja chelliah committee
(b) goiporia committee
(c) verma committee
(d) chakrabarty committee
answer
answer: (b) goiporia committee
question 67.
for revival and restructuring of weak banks of the public sector, which committee was constituted?
(a) verma committee
(b) goiporia committee
(c) rekhi committee
(d) narsimham committee
answer
answer: (a) verma committee
question 68.
rbi announced the guidelines to issue licenses to new banks of the private sector on:
(a) january 22, 1993
(b) march 15, 1995
(c) april 1, 1999
(d) none of these
answer
answer: (a) january 22, 1993
question 69.
who is the custodian of the indian banking system?
(a) reserve bank of india
(b) state bank of india
(c) unit trust of india
(d) lic of india
answer
answer: (a) reserve bank of india
question 70.
banking sector reforms in india began in:
(a) 1969
(b) 1981
(c) 1991
(d) 2001
answer
answer: (c) 1991
question 71.
14 big scheduled commercial banks in india were nationalised in:
(a) 1949
(b) 1955
(c) 1969
(d) 2000
answer
answer: (c) 1969
question 72.
which is associated with reforms in the banking sector?
(a) year 1991
(b) narsimham committee
(c) y.v. reddy committee
(d) only (a) and (b)
answer
answer: (d) only (a) and (b)
question 73.
“money is what money does”. who said this:
(a) hartley withers
(b) harte
(c) prof. thomas
(d) keynes
answer
answer: (a) hartley withers
question 74.
the function of money is:
(a) medium of exchange
(b) measure of value
(c) store of value
(d) all of the above
answer
answer: (a) medium of exchange
question 75.
the meaning of money supply is:
(a) money deposits in the bank
(b) cash available with public
(c) savings in the post office
(d) all of the above
answer
answer: (d) all of the above.
question 76.
what is the central bank of india:
(a) commercial banks
(b) central bank
(c) private bank
(d) none of these
answer
answer: (a) commercial banks
question 77.
through which method we can withdraw money from the bank:
(a) drawing letter
(b) cheque
(c) a.t.m.
(d) all of the above
answer
answer: (d) all of the above.
question 78.
who is the guardian of the indian banking system:
(a) reserve bank of india
(b) state bank of india
(c) unit trust of india
(d) life insurance company of india.
answer
answer: (a) reserve bank of india
question 79.
narasimham committee is related to what:
(a) improvement in taxation
(b) improvement in banking
(c) improvement in agriculture
(d) improvement in infrastructure
answer
answer: (b) improvement in banking
We need 6th sem mathematics ( linear algebra) mcqs
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