Money & Banking-1

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1. Which among of the following is open Bank for small industries?
Ans. (B)

2. IDBI was established on–
(A) July, 1964
(B) July, 1966
(C) July, 1962
(D) July, 1968
Ans. (A)

3. Which among of the following bank was earlier known as ‘Imperial Bank of India’?
Ans. (B)

4. SBI was earlier known as –
(A) Cooperative Bank of India
(B) Imperial Bank of India
(C) Syndicate Bank
D) Canara Bank
Ans. (B)

5. The Interest on saving deposits in all nationalized banks of India is determined by–
(A) Finance Minister
(B) Finance Commission
(C) Indian Cooperative Bank
(D) Reserve Bank of India
Ans. (D)

6. Which among the following is public sector undertaking?
(A) HSBC Bank
(B) Syndicate Bank
(C) South Indian Bank
(D) Bank of Punjab
Ans. (B)

7. When were Fourteen Indian Banks nationalized in?
(A) 1967
(B) 1968
(C) 1969
(D) 1971
Ans. (C)

8. ‘NABARD’ Stands for–
(A) National Bank for Agricultural Refinance & Development
(B) National Board of Agricultural Research & Development
(C) National Academy of Banking and Agricultural Research and Development
(D) Nation Bank for Agriculture and Rural Development.
Ans. (D)

9. ‘NABARD’ is related to development of –
(A) Agriculture and Rural Areas
(B) Heavy Industries
(C) Banking Sector
(D) None of the above
Ans. (A)

10. Which of the following is not a industrial finance institution?
Ans. (C)

11. Whose signature is done on one rupee note?
(A) Finance Secretary
(B) Governor of RBI
(C) Finance Minister
(D) None of these
Ans. (A)

12. Decimal Money System was started in?
(A) 1955
(B) 1956
(C) 1957
D) 1958
Ans. (C)

13. Bank rate is the rate of interest–
(A) At which public borrow money from commercial Banks
(B) At which public borrows money from RBI
(C) At which commercial Banks borrow money from RBI
(D) At which commercial Banks borrows money from the public
Ans. (C)
14. Remedy Finance is done by–
(A) National Development Council
Ans. (D)

15. Which among the following is Known as “Hot Money”?
Ans. (A)

16. Cash Reserve Ratio and open Market Operation are the tools of–
(A) Monetary Policy
(B) Budget Policy
(C) Trade Policy
(D) Fiscal policy
Ans. (A)

17. Which among of the following are related to banking reform?
(A) L.C. Gupta Committee
(B) Narasimhan Committee
(C) Chakravarti Committee
(D) Kelkar Committee
Ans. (B)

18. In E-banking, ‘E’ Stands for–
(A) Economics Banking
(B) Environment Banking
(C) Electronic Banking
(D) Expand Banking
Ans. (C)

19. Which of the following is not a measure to check money supply in market?
(A) Free Market Policy
(C) Bank Rate
(D) Change in marginal necessities
Ans. (A)

20. RBI does not transact the business of which state government?
(A) Nagaland
(B) Jammu and Kashmir
(C) Punjab
(D) Assam
Ans. (B)

21. Which among the following is correct about money supply in India?
(A) Money Possessed by public is not exchangeable
(B) Amount of money deposit in banks is greater than public holds
(C) Amount of money possessed by public is more than bank deposits
(D) Amount of money possessed by public is equal to bank deposits
Ans. (B)

22. ‘Hard Currency’ is–
(A) A currency which is paid for loan
(B) A currency which is paid for gold
(C) A currency which is easy to access
(D) A currency not easy to access
Ans. (D)

23. The Financial Year of RBI is from –
(A) April to March
(B) July to June
(C) January to December
(D) August to July
Ans. (B)

24. A Schedule Bank is one which is included in the –
(A) II Schedule of Banking Regulation Act.
(B) II Schedule of Constitution
(C) II Schedule of RBI act
(D) None of the above
Ans. (C)

25. Which among of the following is not a government organization?
(A) National Residence Bank
Ans. (C)

26. The Largest Commercial Bank of India is –
(A) Central Bank of India
(C) Indian Overseas Bank
(D) Bank of India
Ans. (B)

27. The Maximum branches of Indian Bank is in–
(A) Bangladesh
(B) Sri Lanka
(C) UK
Ans. (C)

28. Which among the following is true?
(A) Money is a good servant
(B) Money is a good servant but bad master
(C) Money is a good master but bad servant
(D) Money is a good master and servant too
Ans. (B)

29. Which among of the following is a Example of optional money?
(A) Currency Notes
(B) Coins
(C) Cheques
(D) Bonds
Ans. (C)

30. Which among of the following statement is correct?
(A) Good money drives bad money out of circulation.
(B) Bad money drives out good money from circulation
(C) Good and bad money Cannot circulate together.
(D) Can’t say
Ans. (B)

31. Green Banking means-
(A) Development of forestry by banks.
(B) Financing of environment friendly projects by banks
(C) Financing of irrigation projects by banks
(D) None of the above
Ans. (D)

32. 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
Ans. (A)

33. The demand for money, according to Keynes is for–
(A) Speculative Motive
(B) Transaction Motive
(C) Precautionary Motive
(D) All of the above
Ans. (D)

34. The rate of interest is determined by–
(A) The rate of return on the capital invested
(B) Reserve Bank of India
(C) Liquidity Preference
D) Commercial Banks
Ans. (B)

35. Cheap money means–
(A) Low rates of interest
(B) Low level of saving
(C) Low level of income
(D) Low level of standard of living
Ans. (A)

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