MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
A speculator who sells stocks, in order to buy back when price falls, for gain is a |
| A. | Bull |
| B. | Bear |
| C. | Boar |
| D. | Bison |
| Answer» C. Boar | |
| 2. |
Full convertibility of a rupeee means |
| A. | purchase of foreign exchange for rupees freely |
| B. | payment for imports in terms of ruppes |
| C. | repayment of loans in terms of rupees |
| D. | determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply |
| Answer» E. | |
| 3. |
Green banking means |
| A. | development of forestry by banks |
| B. | financing of environmental friendly projects by banks |
| C. | financing of irrigation projects by banks |
| D. | None of the above |
| Answer» C. financing of irrigation projects by banks | |
| 4. |
Which one of the following is a developmental expenditure? |
| A. | Irrigation expenditure |
| B. | Civil administration |
| C. | Debt services |
| D. | Grant in aid |
| Answer» B. Civil administration | |
| 5. |
A currency having a falling exchange rate due to continuing balance of payments deficit is called a |
| A. | Soft currency |
| B. | Hard currency |
| C. | Scarce currency |
| D. | Surplus currency |
| Answer» B. Hard currency | |
| 6. |
Green Banking means : |
| A. | Banks financing agriculture |
| B. | Banks financing irrigation projects |
| C. | Banks financing farmers |
| D. | Banks financing proenvironmental projects |
| Answer» E. | |
| 7. |
Bank rate is the rate of interest |
| A. | at which public borrows money from Commercial Bank |
| B. | at which public borrows money from RBI |
| C. | at which Commerical Banks borrow money from RBI |
| D. | at which Commerical Banks borrow money from public |
| Answer» D. at which Commerical Banks borrow money from public | |
| 8. |
Under flexible exchange rate system, the exchange rate is determined by |
| A. | the Central Bank of the country |
| B. | the forces of demand and supply in the foreign exchange market |
| C. | the price of gold |
| D. | the purchasing power of currencies |
| Answer» C. the price of gold | |
| 9. |
In a period of inflation and price rise the supply of money remains |
| A. | the same |
| B. | increases |
| C. | decreases |
| D. | increases or decreases proportionately. |
| Answer» C. decreases | |
| 10. |
Which one of the following is not a function of the central bank in an economy ? |
| A. | Dealing with foreign exchange |
| B. | Controlling monetary policy |
| C. | Controlling government spending |
| D. | Acting as a banker s bank |
| Answer» D. Acting as a banker s bank | |
| 11. |
The smaller the Cash Reserve Ratio, the scope for lending by banks is : |
| A. | greater |
| B. | smaller |
| C. | weaker |
| D. | lesser |
| Answer» B. smaller | |
| 12. |
A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a |
| A. | Bear |
| B. | Bull |
| C. | Bison |
| D. | Boar |
| Answer» C. Bison | |
| 13. |
Variation in Cash Reserve Ratio and Open Market Operations are instruments of |
| A. | Budgetary policy |
| B. | Trade policy |
| C. | Fiscal policy |
| D. | Monetary policy |
| Answer» E. | |
| 14. |
Which one is not a function of money ? |
| A. | Transfer of value |
| B. | Store of value |
| C. | Price stabilisation |
| D. | Value measurement |
| Answer» D. Value measurement | |
| 15. |
Bad money will drive out good money from circulation. This is known as : |
| A. | Engle s Law |
| B. | Gresham s Law |
| C. | Say Law |
| D. | Wagner s Law |
| Answer» C. Say Law | |
| 16. |
Inflation can be checked by |
| A. | increasing exports |
| B. | increasing money supply |
| C. | increasing Government expenditure |
| D. | decreasing money supply |
| Answer» E. | |
| 17. |
Bank money refers to |
| A. | currency notes |
| B. | coins |
| C. | gold bullions |
| D. | cheques |
| Answer» E. | |
| 18. |
Money is an example of |
| A. | Sunk capital |
| B. | Floating capital |
| C. | Concrete capital |
| D. | Social capital |
| Answer» C. Concrete capital | |
| 19. |
Which term is not related to banking ? |
| A. | C.R.R. |
| B. | N.E.E.R. |
| C. | S.L.R. |
| D. | Fixed Deposits |
| Answer» C. S.L.R. | |
| 20. |
Which of the following is not helpful in controlling money supply ? |
| A. | Free market policy |
| B. | CRR |
| C. | Bank Rate |
| D. | Change in margin requirement |
| Answer» B. CRR | |
| 21. |
Pegging up of a currency means, fixing the value of a currency |
| A. | at a constant level |
| B. | at a lower level |
| C. | at a higher level |
| D. | leaving it to market forces |
| Answer» B. at a lower level | |
| 22. |
Who benefits the most during the inflationary period ? |
| A. | corporate servants |
| B. | creditors |
| C. | entrepreneurs |
| D. | government servants |
| Answer» D. government servants | |
| 23. |
Stagflation refers to a situation which is characterised by |
| A. | stagnant employment and deflation |
| B. | deflation and rising unemployment |
| C. | inflation and rising employment. |
| D. | inflation and rising unemployment |
| Answer» E. | |
| 24. |
The purpose of devaluation is to : |
| A. | be little foreign currencies |
| B. | encourage exports |
| C. | discourage exports |
| D. | encourage import |
| Answer» C. discourage exports | |
| 25. |
What does the letter e denotes in the term e - banking ? |
| A. | Essential Banking |
| B. | Economic Banking |
| C. | Electronic Banking |
| D. | Expansion Banking |
| Answer» D. Expansion Banking | |
| 26. |
MUDRA Bank has been launched to help |
| A. | Small business |
| B. | Marginal farmers |
| C. | Poor women |
| D. | Rural sector |
| Answer» B. Marginal farmers | |
| 27. |
A currency whose exchange rate is influenced by the government is a/an |
| A. | Unmanaged Currency |
| B. | Managed Currency |
| C. | Scarce Currency |
| D. | Surplus Currency |
| Answer» C. Scarce Currency | |
| 28. |
Money market is a market for |
| A. | Short term fund |
| B. | Long term fund |
| C. | Negotiable instruments |
| D. | Sale of shares |
| Answer» B. Long term fund | |
| 29. |
The rate of tax increase as the amount of the tax base increases is called |
| A. | Proportional tax |
| B. | Progressive tax |
| C. | Regressive tax |
| D. | Degressive tax |
| Answer» C. Regressive tax | |
| 30. |
Which of the following brings out the Consumer Price Index Number for Industrial workers? |
| A. | RBI |
| B. | The Labour Bureau |
| C. | Commerce Department |
| D. | NITI Aayog |
| Answer» C. Commerce Department | |
| 31. |
The Cash Reserve Ratio is a tool of : |
| A. | Monetary policy |
| B. | Tax policy |
| C. | Agricultural policy |
| D. | Fiscal policy |
| Answer» B. Tax policy | |
| 32. |
Smart Money term is used for |
| A. | Credit Card |
| B. | Internet Banking |
| C. | eBanking |
| D. | Cash with Public |
| Answer» B. Internet Banking | |
| 33. |
Residex is associated with |
| A. | Share prices |
| B. | Price inflation |
| C. | Mutual fund prices |
| D. | Land prices |
| Answer» E. | |
| 34. |
Open Market Operations refer to __________ . |
| A. | Borrowings by Scheduled banks from RBI |
| B. | Lending by Commercial banks to industry |
| C. | Purchase and sale of Government securities by RBI |
| D. | Deposit mobilisation |
| Answer» D. Deposit mobilisation | |
| 35. |
If a country devalues its currency, its |
| A. | Exports become cheaper and imports become costlier |
| B. | Exports become costlier and imports become cheaper. |
| C. | Exports value is equivalent to imports value |
| D. | No effect on exports and imports |
| Answer» B. Exports become costlier and imports become cheaper. | |
| 36. |
The terms Bull and Bear are associated with |
| A. | Banking |
| B. | Foreign Trade |
| C. | Stock Market |
| D. | Internet Trade |
| Answer» D. Internet Trade | |
| 37. |
Capital market deals with |
| A. | Short term fund |
| B. | Long term fund |
| C. | Cash |
| D. | Both long and short term funds |
| Answer» C. Cash | |
| 38. |
Deflation is a situation in which |
| A. | The value of money is falling. |
| B. | The price of goods is increasing. |
| C. | The value of money is increasing. |
| D. | The price level is stagnant. |
| Answer» D. The price level is stagnant. | |
| 39. |
Commercial banks create credit |
| A. | on the basis of their securities |
| B. | on the basis of their assets |
| C. | on the basis of their reserve fund |
| D. | on the basis of their deposits |
| Answer» E. | |
| 40. |
If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should |
| A. | lower cash reserve ratio |
| B. | raise discount rates |
| C. | sell government securities |
| D. | All of the above |
| Answer» B. raise discount rates | |
| 41. |
Legal Tender Money is |
| A. | accepted only by Government |
| B. | accepted by people and Government as per the law |
| C. | not accepted for business purposes by law |
| D. | not accepted by Government |
| Answer» C. not accepted for business purposes by law | |
| 42. |
Which one of the following is an example of optional money? |
| A. | Currency note |
| B. | Coins |
| C. | Cheque |
| D. | Bond |
| Answer» D. Bond | |
| 43. |
Regulated markets aim at the development of the marketing structure to |
| A. | widen the price spread between the producer and the consumer |
| B. | narrow down the price spread between the producer and the consumer |
| C. | increase the non-functional margins of the traders |
| D. | maximise the non-functional margins of the commission agents |
| Answer» C. increase the non-functional margins of the traders | |
| 44. |
Funds which flow into a country to take advantage of favourable rates of interest in that country is called |
| A. | Cold Money |
| B. | Black Money |
| C. | Hot Money |
| D. | White Money |
| Answer» D. White Money | |
| 45. |
During periods of inflation, tax rates should |
| A. | increase |
| B. | decrease |
| C. | remain constant |
| D. | fluctuate |
| Answer» B. decrease | |
| 46. |
For channelising the unaccounted money for productive purposes the Government Introduced the scheme of : |
| A. | Special Bearer Bonds |
| B. | Resurgent India Bonds |
| C. | Provident Funds |
| D. | Market Loans |
| Answer» B. Resurgent India Bonds | |
| 47. |
The term stagflation refers to a situation where |
| A. | growth has no relation with the change in prices |
| B. | rate of growth and prices both are decreasing |
| C. | rate of growth in faster than the rate of price increase |
| D. | rate of growth is slower than the rate of price increase |
| Answer» E. | |
| 48. |
When there is an official change in the exchange rate of domestic currency, then it is called : |
| A. | Appreciation |
| B. | Depreciation |
| C. | Revaluation |
| D. | Deflation |
| Answer» D. Deflation | |
| 49. |
Cheap Money means |
| A. | Low Rate of Interest |
| B. | Low level of Savings |
| C. | Low level Income |
| D. | Excess of Black Money |
| Answer» B. Low level of Savings | |
| 50. |
The major aim of devaluation is to : |
| A. | encourage imports |
| B. | encourage exports |
| C. | encourage both exports and imports |
| D. | discourage both exports and imports |
| Answer» C. encourage both exports and imports | |