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MCQs

Total Questions : 10
Question 1.


The Central Bank of which country has been entrusted with the responsibility of controlling inflation and, in pursuing this goal, can even impose limits on government borrowing?


  1.     Australia
  2.     India
  3.     New Zealand
  4.     Brazil
 Discuss Question
Answer: Option C. -> New Zealand
:
C


Option: (c)


Question 2.


Consider the following statements:
The functions of the Reserve Bank of India do not include:
1. Open market operations
2. Monitoring revenue collection
3. Supervising non-banking finance companies
4. Review of public expenditure
Which of the statement/s given above is/are correct?


  1.     1 only
  2.     2 and 4
  3.     1,3, and 4
  4.     1,2,3 and 4
 Discuss Question
Answer: Option B. -> 2 and 4
:
B


Option: (b)


Question 3.


Tarapore committee recommended that foreign exchange reserves should not be below the requirements of import for:


  1.     10 months
  2.     6 months
  3.     7 months
  4.     3 months
 Discuss Question
Answer: Option B. -> 6 months
:
B


Option: (b)


Question 4.


National Securities Depository Limited (NSDL) deals with:


  1.     bearer bonds
  2.     GDRs
  3.     electronic shares
  4.     debentures
 Discuss Question
Answer: Option C. -> electronic shares
:
C


Option: (c)


Question 5.


Dr. L.C. Gupta Committee was appointed to look into the working of:


  1.     stock exchanges
  2.     insurance companies
  3.     commercial banks
  4.     development finance institutions
 Discuss Question
Answer: Option A. -> stock exchanges
:
A


Option: (a)


Question 6.


The target was to convert SAPTA into SAFTA by:


  1.     2000 A.D.
  2.     2002 A.D.
  3.     2005 A.D.
  4.     2011 A.D.
 Discuss Question
Answer: Option C. -> 2005 A.D.
:
C


Option: (c)


Question 7.


The Central Bank of which country has been entrusted with the responsibility of controlling inflation and, in pursuing this goal, can even impose limits on government borrowing?


  1.     Australia
  2.     India
  3.     New Zealand
  4.     Brazil
 Discuss Question
Answer: Option C. -> New Zealand
:
C


Option: (c)


Question 8.


Some of the measures suggested to curtail inflation are:
1. Restricting public expenditure
2. Mopping up increased liquidity through taxation or savings
3. Strengthening public distribution system
Which of the above statements are correct?


  1.     1 and 3
  2.     2 and 3
  3.     1 and 2
  4.     1,2 and 3
 Discuss Question
Answer: Option C. -> 1 and 2
:
C


Option: (c)


Question 9.


Consider the following statements in respect of the Fiscal Responsibility and Budget Management Act:
1.It lays down limits for revenue deficit and fiscal deficit as a percentage of GDP.
2.It applies to both Central and State Governments.
3.It does not permit the Central Government to give guarantees to loans raised by PSUs and State Governments beyond 0.5 per cent of GDP.
4.It prescribes an upper limit for the liabilities of the government.
Which of these statements are correct?


  1.     1 and 3 only
  2.     1,2, 3 and 4
  3.     2 and 4 only
  4.     1,3 and 4
 Discuss Question
Answer: Option D. -> 1,3 and 4
:
D


Option: (d)


Question 10.


The first bank managed by Indians was:


  1.     Punjab National Bank
  2.     OudhBank
  3.     Benaras State Bank
  4.     Punjab & Sind Bank
 Discuss Question
Answer: Option B. -> OudhBank
:
B


Option: (b)


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