Banking and Financial Awareness

Q1. The objective of selective credit controls is mainly to?

(a) Selectively allocate credit to commercial banks 

(b) Selectively allocate credit among borrowers

(c) Regulate the quantity of demand deposits created by commercial banks 

(d) Regulate the quantity of credit created by commercial banks 

Q2. Grasham’s law relates to.............?

(a) Money supply

(b) Money and prices 

(c) Real output 

(d) Employment 

Q3.‘Misery Index’ represents?

(a) Sum of rate of inflation and rate of unemployment 

(b) Product of rate of inflation and rate of unemployment

(c) Proportion of very poor to poor living below the poverty line 

(d) Both (b) and (c)

Q4. Which the following is/are included in ‘Deficit Financing’ in India? (The term is sued frequently in economic planning) 

A. Borrowing from the Reserve Bank of India.

B. Issue of New currency Notes.

C. Withdrawal of past balances/surpluses etc.

(a) Only A

(b) Only B

(c) Only C

(d) All of the above 

Q5. Which statement of the following is true for IMF?

(a) It is not an agency of UNO

(b) It can grant loan to any country of the world 

(c) It can grant loan to state Govt. of a country 

(d) It grants loan only to member nations

Q6. The Headquarter of World Bank is situated at...?

(a) Manila 

(b) Washington DC

(c) New York 

(d) Geneva 

Q7. Which pair is not correct?

(a) EXIM Bank – Financing for export-import 

(b) RBI – Banker’s bank 

(c) IDBI – Industrial finance 

(d) FCI – Financial assistance to commercial institutions

Q8. The filed given to Rangarajan Committee was?

(a) Modernisation of Cloth Industry

(b) To probe Share scan 

(c) To probe Sugar scam 

(d) To suggest measures for controlling Balance of Payment (BOP) deficit 

Q9. The Headquarter of IMF is in.......?

(a) New York 

(b) Washington DC

(c) London 

(d) Manila 

Q10. According to Banking Regulation Act, RBI can fix SLR upto the ceiling of?

(a) 40%

(b) 50%

(c) 30%

(d) 45%