Q 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
Ans. (D) All of these
Q 2 – Which of the following is the credit money?
(A) Cheque and draft
(B) Promissory note
(C) Exchange note
(D) All of these
Ans. (D) All of these
Q 3 – Which among the following is the near money?
(A) Bonds
(B) Insurance policy
(C) Securities
(D) All of these
Ans. (D) All of these
Q 4 – Which of the following is the feature of money?
(A) General acceptability
(B) Homogeneous unit
(C) Liquid asset
(D) All of these
Ans. (D) All of these
Q 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
Ans. (A) Reduce Cash Reserve Ratio
Q 6 – Institution that accepts deposits for lending purpose is known as __________
(A) Commercial Bank
(B) Central Bank
(C) Government
(D) Public
Ans. (A) Commercial Bank
Q 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
Ans. (D) All of these
Q 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
Ans. (D) Selling government securities
Q 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
Ans. (B) Overdraft
Q 10 – What are the alternative measures of money supply in India?
(A) M1
(B) M2
(C) M3 and M4
(D) All of these
Ans. (D) All of these
Q 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
Ans. (A) Ministry of Finance
Q 12 – Which of the following is the narrow measure of the money supply?
(A) M2
(B) M3
(C) M1
(D) M4
Ans. (C) M1
Q 13 – When was the minimum reserve system started in India?
(A) 1947
(B) 1948
(C) 1951
(D) 1957
Ans. (D) 1957
Q 14 – Which is the most liquid measure of the money supply?
(A) M4
(B) M3
(C) M2
(D) M1
Ans. (D) M1
Q 15 – High Powered Money includes:
(A) C + DD + OD
(B) C + R + OD
(C) C + R + TD
(D) C + DD + TD
Ans. (B) C + R + OD
Q 16 – Indian Monetary System is based on ________
(A) Paper Standard
(B) Metallic Standard
(C) Gold Standard
(D) Credit Money Standard
Ans. (A) Paper Standard
Q 17 – Which of the following is the apex bank of India?
(A) RBI
(B) SBI
(C) SBP
(D) PNB
Ans. (A) RBI
Q 18 – Who has the right of note issue?
(A) Central Bank
(B) Commercial Bank
(C) Government
(D) Co-operative Bank
Ans. (A) Central Bank
Q 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
Ans. (D) All of these
Q 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
Ans. (C) Cash reserve ratio
Q 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
Ans. (B) Saving account deposits and current account deposits
Q 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
Ans. (d) All the above
Q 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
Ans. (d) All the above
Q 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
Ans. (d) All the above
Q 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
Ans. (b) Commodity Money, Metal Money, Paper Money, Credit Money
Q 26 – Money is what money does.” Who said it?
(a) Hartley Withers
(b) Hawtrey
(c) Thomas
(d) Keynes
Ans. (a) Hartley Withers
Q 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
Ans. (c) Both (a) and (b)
Q 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
Ans. (d) All of these
Q 29 – Money is a pivot around which the whole economy clusters.” Who said it?
(a) Keynes
(b) Robertson
(c) Marshall
(d) Hawtrey
Ans. (c) Marshall
Q 30 – The function of money is:
(a) Medium of Exchange
(b) Measure of Value
(c) Store of Value
(d) All the above
Ans. (d) All the above
Q 31 – The functions of money include:
(a) Value determination
(b) Store of value
(c) Means of exchange
(d) All of these
Ans. (d) All of these
Q 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
Ans. (d) All of these
Q 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
Ans. (d) All of these
Q 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
Ans. (b) Price stability
Q 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
Ans. (a) Commercial Bank
Q 36 – The primary function of Commercial Bank is?
(a) Accepting Deposits
(b) Advancing Loans
(c) Credit Creation
(d) All of these
Ans. (d) All of these
Q 37 – Deposits accepted by the Commercial Banks:
(a) Current Deposits
(b) Saving Deposits
(c) Time Deposits
(d) All of these
Ans. (d) All of these
Q 38 – What type of loan is advanced by Commercial Banks?
(a) Cash Credit
(b) Overdraft
(c) Loan and Advance
(d) All of these
Ans. (d) All of these
Q 39 – Which function is the Secondary Function of Commercial Banks?
(a) Agency Function
(b) General Utility Function
(c) Social Function
(d) All of these
Ans. (d) All of these
Q 40 – Which is the Agency Function of Commercial Banks?
(a) Advancing Loans
(b) Accepting Deposits
(c) Act as Trustee
(d) Locker Facility
Ans. (c) Act as Trustee
Q 41 – Credit money is increased when CRR:
(a) Falls
(b) Rises
(c) Both (a) and (b)
(d) None of these
Ans. (a) Falls
Q 42 – The full form of ATM is:
(a) Any Time Money
(b) All Time Money
(c) Automated Teller Machine
(d) Both (a) and (b)
Ans. (c) Automated Teller Machine
Q 43 – 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
Ans. (c) Accept deposits from customers
Q 44 – What is the Central Bank of India?
(a) Commercial Bank
(b) Central Bank
(c) Private Bank
(d) None of these
Ans. (a) Commercial Bank
Q 45 – Commercial banks:
(a) Issue currency notes
(b) Accepts deposits from customers
(c) Provide loans to customers
(d) Only (b) and (c)
Ans. (d) Only (b) and (c)
Q 46 – 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
Ans. (d) All the above
Q 47 – Central Bank of India is:
(a) Reserve Bank of India
(b) State Bank of India
(c) Central Bank of India
(d) Bank of India
Ans. (a) Reserve Bank of India
Q 48 – 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
Ans. (d) All the above
Q 49 – Which type of currency is issued by Central Bank?
(a) Currency
(b) Credit Money
(c) Coins
(d) All of these
Ans. (a) Currency
Q 50 – 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
Ans. (b) To stabilize Exchange Rate
Q 51 – 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
Ans. (d) All the above
Q 52 – Which is not a quantitative method of credit control?
(a) Bank Rate
(b) Moral Suasion
(c) Open Market Operations
(d) Change in CRR
Ans. (b) Moral Suasion
Q 53 – 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
Ans. (b) Statutory Liquidity Ratio
Q 54 – Reserve Bank of India was established in :
(a) 1947
(b) 1935
(c) 1937
(d) 1945
Ans. (b) 1935
Q 55 – Monetary policy is related with:
(a) Public Expenditure
(b) Taxes
(c) Public Debt
(d) Open market operations
Ans. (d) Open market operations
Q 56 – Which of the following issue paper currency in the country?
(a) Commercial Bank
(b) Central Bank
(c) World Bank
(d) Industrial Bank
Ans. (b) Central Bank
Q 57 – The central bank controls credit through:
(a) Bank rate
(b) Open market
(c) CRR
(d) All the above
Ans. (a) Bank rate
Q 58 – 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
Ans. (b) Restriction on consumer credit
Q 59 – 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
Ans. (d) All of these
Q 60 – Who regulates the money supply?
(a) Govt, of India
(b) Reserve Bank of India
(c) Commercial Bank
(d) Planning Commission
Ans. (b) Reserve Bank of India
Q 61 – With which Narsimham Committee is related to?
(a) Tax Reforms
(b) Banking Reforms
(c) Agriculture Reforms
(d) Infrastructure Reforms
Ans. (b) Banking Reforms
Q 62 – In which year the second Narsimham Committee was constituted?
(a) 1978
(b) 1991
(c) 1997
(d) 1998
Ans. (d) 1998
Q 63 – Banking Ombudsman Scheme was announced in the year:
(a) 1990
(b) 1995
(c) 1997
(d) 2000
Ans. (b) 1995
Q 64 – 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
Ans. (d) All of these
Q 65 – Which committee was constituted for suggesting consumer service improvements in banks?
(a) Raja Chelliah Committee
(b) Goiporia Committee
(c) Verma Committee
(d) Chakrabarty Committee
Ans. (b) Goiporia Committee
Q 66 – 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
Ans. (a) Verma Committee
Q 67 – 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
Ans. (a) January 22, 1993
Q 68 – 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
Ans. (a) Reserve Bank of India
Q 69 – Banking Sector Reforms in India began in:
(a) 1969
(b) 1981
(c) 1991
(d) 2001
Ans. (c) 1991
Q 70 – 14 big scheduled commercial banks in India were nationalised in:
(a) 1949
(b) 1955
(c) 1969
(d) 2000
Ans. (c) 1969
Q 71 – 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)
Ans. (d) Only (a) and (b)
Q 72 – Money is what money does”. Who said this:
(a) Hartley Withers
(b) Harte
(c) Prof. Thomas
(d) Keynes
Ans. (a) Hartley Withers
Q 73 – he function of money is:
(a) Medium of exchange
(b) Measure of value
(c) Store of value
(d) All of the above
Ans. (a) Medium of exchange
Q 74 – 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
Ans. (d) All of the above.
Q 75 – What is the Central Bank of India:
(a) Commercial Banks
(b) Central Bank
(c) Private Bank
(d) None of these
Ans. (a) Commercial Banks
Q 76 – Through which method we can withdraw money from the bank:
(a) Drawing letter
(b) Cheque
(c) A.T.M.
(d) All of the above
Ans. (d) All of the above.
Q 77 – 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.
Ans. (a) Reserve Bank of India
Q 78 – Narasimham Committee is related to what:
(a) Improvement in Taxation
(b) Improvement in Banking
(c) Improvement in Agriculture
(d) Improvement in Infrastructure
Ans. (b) Improvement in Banking