Professional Documents
Culture Documents
Money and Banking Multiple Choice Questions (Select The Best Alternative)
Money and Banking Multiple Choice Questions (Select The Best Alternative)
2. Money
3. Price of money
(a) does not exist because it is not a good that one can purchase from the market.
(b) at best can be the inflation rate.
(c) is best measured in terms of opportunity cost of holding money.
5. Near-Money
1
6. Zero coupon bond is a
7. A consol
8. Return on a bond
9. Yield to maturity
2
Module 2: Money Supply
(a) M0.
(b) M1.
(c) M3.
(a) due to exclusion (inclusion) of total Post Office Savings Bank Deposits.
(b) due to exclusion (inclusion) of Post Office Savings Bank Time Deposits.
(c) due to exclusion (inclusion) of Post Office Savings Bank Demand Deposits.
3
7. MO is primarily driven by
9. Despite recession
10. One of the purposes behind formation of the three new monetary aggregates
12. One among the following is not a ‘source’ of monetary base in India.
4
13. The most dominating ‘source’ of monetary base in India has been
1. DFHI
3. UTI
5
4. Call money
5. Commercial Papers
6. Gilt-edged market
8. CPs
9. CPs
6
10. CDs
11. CDs
(a) will not exist if there are no CRR or SLR obligations of banks.
(b) is complementary to the inter-bank call market.
(c) transacts various types of securities other than government securities.
7
Module 4: Reserve Bank of India
2. Paper currencies
(a) are put into circulation by the Issue Department of the RBI.
(b) are liabilities of the Issue Department.
(c) are liabilities of the Banking Department of the RBI.
6. Unencumbered securities
8
7. Selective Credit Control methods
8. Autonomous liquidity
9. Discretionary liquidity
10. ILAF
9
Module 5: Banking Institutions
1. Scheduled banks
3. Action Plans
(a) sponsoring bank: 35%; central government: 15%; state government: 50%.
(b) central government: 50%; state government: 35%; sponsoring bank: 15%.
(c) central government: 50%; state government: 15%; sponsoring bank: 35%.
10
7. The bulk of the ‘assets’ of scheduled commercial banks
8. In recent years
(a) is Cash.
(b) is Balances with the RBI.
(c) None of the above.
11
13. Primary Agricultural Credit Societies
12