1.For international payments, the Indian currency is linked to

(A) American Dollar (B) British Sterling (C) Gold standard (D) None of the above

2.Which of the following is a pad of capital account?

(A) Private capital (B) Banking capital (C) Official capital (D) All of the above

3.Which of the following is used to denote broad money?

(A) M1 (B) M2 (C) M3 (D) M4

1.Following concept of money supply is called 'narrow money' :

(A) M1      (B) M2      (C) M3       (D) M4

2.Volume of bill finance in the Indian money market is

(A) relatively high.     (B) relatively low.         (C) medium.    (D) excessive.

3.Treasury bills are instruments of the Central Government to secure ______

(A) Long term credit    (B) Very long term credit     (C) Short term credit   (D) Medium term credit

4.Which concept of money supply includes currency, demand deposits with commercial banks, other deposits with RBI, time deposits with commercial banks ?

(A) M1      (B) M2      (C) M3      (D) M4

5.Money defined as M1 consists ______

(A) Only chequeable deposits

(B) (A) above + currency

(C) (B) above + mutual fund deposits

(D) None of the above

6.In a well developed bill market

(A) frequency of bills changing hands will be low.

(B) frequency of bills changing hands will be high.

(C) frequency of bills changing hands will be medium.

(D) market will be neutral.

7.Re-Discounting of bills is a source of

(A) long term credit.

(B) short term trade credit.

(C) medium term credit.

(D) assistance for Govt. loans taken from market

8.Money supply when defined as M3, consists of _______

(A) Commercial bank time deposits only

(B) (A) above and currency plus demand deposit

(C) (B) above plus post office bank deposits

(D) Includes (B) above and High power money

1.A currency with a value that fluctuates as a result of the country's political or economic uncertainty is known as

(A) Hard Currency      (B) Soft Currency        (C) Both (A) and (B)     (D) None of the above

2. —— is the venture capital assistance at the stage where the project started to fetch profit but not reached in its full efficiency.

(A) Start up Capital      (B) Bridge Capital       (C) Mezzanine Capital              (D) Seed Capital

3.Money policy increases the inflation rate is known as

(A) Cheap money policy        (B) Dear money policy      (C) Hot money     (D) Flat money

1.Collateralized Borrowing and Lending Obligation (CBLO) is a —— .

(A) Money Market Instrument

(B) Monetary Policy Instrument

(C) Investment fund

(D) Capital Market Instrument

2.Which of the following is used to denote broad money ?

(A) M1             (B) M2      (C) M3         (D) M4

1.In India which of the following measures of money denotes the Broad Money ?

(A) M1              (B) M2      (C) M3            (D) M4

1.Devaluation of currency leads to —

(A) fall in domestic prices

(B) increase in domestic prices

(C) can't be predicted

(D) None of the above

2.Economic growth in India will happen necessarily if there is -

(A) Population growth

(B) Capital formation

(C) Technical progress in the global economy

(D) All of the above

1.Indian currency is

(A) Totally convertible in capital account        (B) Partly convertible in capital account

(C) Not convertible in capital account         (D) None of the above

2.Rural credit in India comes mainly from

(A) Regional Rural banks        (B) Commercial banks             (C) Co-operative banks      (D) Money lenders

1.M3 money is -

(A) M2 + Net time deposits with banks

(B) M1 + M2

(C) M4 - M1

(D) M1 + savings deposits with post office

2.Excise Duty stamps of Central Govt. are printed in the -

(A) Security printing Press, Hyderabad

(B) Currency Notes Press, Nasik Road

(C) Indian Security Press

(D) Modernised Currency Notes Press

3.The Indian rupee is fully convertible in respect of

(i) Current account of balance of payments

(ii) Capital account of balance of payments

(iii) Gold

(iv) None of the above Options

(A) (i) only         (B) Both (i) and (iii)               (C) (iii) only     (D) (i), (ii) and (iii)

4.The states debt does not include -

(A) Loans from State Bank of India

(B) Loans from Central Govt

(C) Provident Funds

(D) Treasury Bills issued to international financial institutions

5.Functions of Money -

(A) Money as a medium of exchange

(B) Money as a unit of account

(C) Money as a standard of deferred payment

(D) All the above three


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