MCQs
Total Questions : 550
| Page 7 of 55 pages
Answer: Option A. -> Depreciation of rupee
Answer: (a)When trade deficit increases that means imports are increasing in the country as compared to exports. Increase in imports causes an increase in demand for dollars which results in decline in value of Indian currency. Increase in trade deficit results in money going out of the Indian economy.
Answer: (a)When trade deficit increases that means imports are increasing in the country as compared to exports. Increase in imports causes an increase in demand for dollars which results in decline in value of Indian currency. Increase in trade deficit results in money going out of the Indian economy.
Question 62. Which of the following statements are true regarding the Foreign Currency Non-Resident (FCNR) Accounts:
Select the correct answer using the code given below:
- Resident Indians and NRI's both can open
- Only Foreign currency can be deposited
- Rupee can be deposited
- Can have both demand and time deposits
Select the correct answer using the code given below:
Answer: Option A. -> (ii) only
Answer: (a)
Foreign Currency Non-Resident (FCNR) Account can be opened only by NRI's/PIO's.
This account can be maintained in any freely convertible foreign currency but only in the form of term/fixed deposits. The interest and principal are non-taxable and freely repatriable.
Answer: (a)
Foreign Currency Non-Resident (FCNR) Account can be opened only by NRI's/PIO's.
This account can be maintained in any freely convertible foreign currency but only in the form of term/fixed deposits. The interest and principal are non-taxable and freely repatriable.
Answer: Option D. -> None of the Above
Answer: (d)
Ad hoc treasury bills are not sold to the banks and the general public and are not marketable while regular treasury bills are sold by the Reserve Bank of India on behalf of the Central Government.
Answer: (d)
Ad hoc treasury bills are not sold to the banks and the general public and are not marketable while regular treasury bills are sold by the Reserve Bank of India on behalf of the Central Government.
Answer: Option A. -> It is an account maintained by a foreign bank with a Bank in India in Indian Rupees.
Answer: (a)
Answer: (a)
Answer: Option B. -> Variable cost reserve ratios
Answer: (b)
Answer: (b)
Answer: Option C. -> 3 only
Answer: (c)
The functions of RBI are
Issue of Notes,
Banker to the Government,
Banker’s Bank,
Controller of Credit,
Custodian of Foreign Reserves.
Answer: (c)
The functions of RBI are
Issue of Notes,
Banker to the Government,
Banker’s Bank,
Controller of Credit,
Custodian of Foreign Reserves.
Answer: Option A. -> entrepreneurs
Answer: (a)
Inflation has the effect of redistributing income because prices of all factors do not decline in the same proportion.
Entrepreneurs stand to gain more than wage earners or fixed income groups.
Speculators, hoarders, black marketers and smugglers gain on account of windfall profits.
Answer: (a)
Inflation has the effect of redistributing income because prices of all factors do not decline in the same proportion.
Entrepreneurs stand to gain more than wage earners or fixed income groups.
Speculators, hoarders, black marketers and smugglers gain on account of windfall profits.
Answer: Option D. -> All of the above
Answer: (d)
NABARD does not give direct loans to individuals but it gives loans to
Commercial Banks,
Regional Rural Banks (RRBs),
State Cooperative Banks & Land Development Banks and
Non-Banking Financial Companies (NBFCs) for further lending (refinance) to the agriculture and rural sectors.
Answer: (d)
NABARD does not give direct loans to individuals but it gives loans to
Commercial Banks,
Regional Rural Banks (RRBs),
State Cooperative Banks & Land Development Banks and
Non-Banking Financial Companies (NBFCs) for further lending (refinance) to the agriculture and rural sectors.
Answer: Option D. -> reduction in the value of the currency vis-a-vis major internationally traded currencies
Answer: (d)
Answer: (d)
Question 70. Why is the offering of “teaser loans’’ by commercial banks a cause of economic concern ?
- The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
- In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
Answer: Option B. -> 1 only
Answer: (b)The statement (1) is correct because it includes the definition of teaser loans but the statement (2) is not correct, because in India teaser loan is provided to the home buyers not for setting up manufacturing or export units.
Answer: (b)The statement (1) is correct because it includes the definition of teaser loans but the statement (2) is not correct, because in India teaser loan is provided to the home buyers not for setting up manufacturing or export units.
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