{"id":901,"date":"2023-06-18T22:42:11","date_gmt":"2023-06-18T17:12:11","guid":{"rendered":"https:\/\/edunovations.com\/mcqs\/?p=901"},"modified":"2023-06-19T13:13:21","modified_gmt":"2023-06-19T07:43:21","slug":"money-supply-banking-and-financial-institutions","status":"publish","type":"post","link":"https:\/\/edunovations.com\/mcqs\/money-supply-banking-and-financial-institutions\/","title":{"rendered":"Money Supply Banking And Financial Institutions &#8211; Indian Economy GK MCQ"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edunovations.com\/mcqs\/money-supply-banking-and-financial-institutions\/#Money_Supply_Banking_And_Financial_Institutions_%E2%80%93_Indian_Economy_GK_MCQ_%E0%A4%AE%E0%A5%81%E0%A4%A6%E0%A5%8D%E0%A4%B0%E0%A4%BE_%E0%A4%86%E0%A4%AA%E0%A5%82%E0%A4%B0%E0%A5%8D%E0%A4%A4%E0%A4%BF_%E0%A4%AC%E0%A5%88%E0%A4%82%E0%A4%95%E0%A4%BF%E0%A4%82%E0%A4%97_%E0%A4%94%E0%A4%B0_%E0%A4%B5%E0%A4%BF%E0%A4%A4%E0%A5%8D%E0%A4%A4%E0%A5%80%E0%A4%AF_%E0%A4%B8%E0%A4%82%E0%A4%B8%E0%A5%8D%E0%A4%A5%E0%A4%BE%E0%A4%A8\" >Money Supply Banking And Financial Institutions &#8211; Indian Economy GK MCQ ( \u092e\u0941\u0926\u094d\u0930\u093e \u0906\u092a\u0942\u0930\u094d\u0924\u093f \u092c\u0948\u0902\u0915\u093f\u0902\u0917 \u0914\u0930 \u0935\u093f\u0924\u094d\u0924\u0940\u092f \u0938\u0902\u0938\u094d\u0925\u093e\u0928 )<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edunovations.com\/mcqs\/money-supply-banking-and-financial-institutions\/#Money_Supply_Banking_And_Financial_Institutions_%E2%80%93_Indian_Economy_GK_MCQ_%E2%80%93_Previous_Year_Questions\" >Money Supply Banking And Financial Institutions  &#8211; Indian Economy GK MCQ &#8211; Previous Year Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edunovations.com\/mcqs\/money-supply-banking-and-financial-institutions\/#Some_Important_Links\" >Some Important Links<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Money_Supply_Banking_And_Financial_Institutions_%E2%80%93_Indian_Economy_GK_MCQ_%E0%A4%AE%E0%A5%81%E0%A4%A6%E0%A5%8D%E0%A4%B0%E0%A4%BE_%E0%A4%86%E0%A4%AA%E0%A5%82%E0%A4%B0%E0%A5%8D%E0%A4%A4%E0%A4%BF_%E0%A4%AC%E0%A5%88%E0%A4%82%E0%A4%95%E0%A4%BF%E0%A4%82%E0%A4%97_%E0%A4%94%E0%A4%B0_%E0%A4%B5%E0%A4%BF%E0%A4%A4%E0%A5%8D%E0%A4%A4%E0%A5%80%E0%A4%AF_%E0%A4%B8%E0%A4%82%E0%A4%B8%E0%A5%8D%E0%A4%A5%E0%A4%BE%E0%A4%A8\"><\/span>Money Supply Banking And Financial Institutions &#8211; Indian Economy GK MCQ ( \u092e\u0941\u0926\u094d\u0930\u093e \u0906\u092a\u0942\u0930\u094d\u0924\u093f \u092c\u0948\u0902\u0915\u093f\u0902\u0917 \u0914\u0930 \u0935\u093f\u0924\u094d\u0924\u0940\u092f \u0938\u0902\u0938\u094d\u0925\u093e\u0928 )<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Enhance your knowledge of money supply, banking, and financial institutions with a comprehensive collection of Multiple Choice Questions (MCQs) sourced from previous year papers of various competitive exams, including UPSC IAS. Test your understanding, sharpen your analytical skills, and stay updated with key concepts in monetary economics.<\/p>\n\n\n\n<p>Brief: Are you seeking a reliable resource to deepen your understanding of money supply, banking, and financial institutions? Look no further! Our MCQs page offers a wide range of questions sourced from previous year papers of various competitive exams, including UPSC IAS and more.<\/p>\n\n\n\n<p>Embark on a stimulating learning journey as you explore this repository of MCQs. By attempting these questions, you can assess your knowledge, identify areas for improvement, and strengthen your conceptual understanding of money supply, banking systems, and financial institutions.<\/p>\n\n\n\n<p>Our MCQs cover a diverse array of topics related to money supply, banking, and financial institutions. Whether you are a student preparing for a competitive exam or an individual interested in monetary economics, this resource is an invaluable tool. Engage with the questions sourced from previous year papers to stay updated with the latest concepts, principles, and developments in these areas.<\/p>\n\n\n\n<p>By practicing with these MCQs, you can enhance your analytical thinking, problem-solving abilities, and decision-making skills in the context of monetary economics. Develop a comprehensive understanding of money creation, banking operations, financial intermediation, central banking, and regulatory frameworks.<\/p>\n\n\n\n<p>Maximize the utility of this page to excel in your exams. Dive into focused study sessions, reinforce your knowledge, and boost your confidence in tackling questions related to money supply, banking systems, and financial institutions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Money_Supply_Banking_And_Financial_Institutions_%E2%80%93_Indian_Economy_GK_MCQ_%E2%80%93_Previous_Year_Questions\"><\/span>Money Supply Banking And Financial Institutions  &#8211; Indian Economy GK MCQ &#8211; Previous Year Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<style>\r\n    \/* Quiz container *\/\r\n    .quiz-container {\r\n        max-width: 800px;\r\n        margin: 0 auto;\r\n        padding: 20px;\r\n        box-sizing: border-box;\r\n        font-family: Arial, sans-serif;\r\n    }\r\n\r\n    \/* Question *\/\r\n    .question {\r\n        background-color: #f9f9f9;\r\n        padding: 20px;\r\n        border: 1px solid #ccc;\r\n        font-size: 20px;\r\n        margin-bottom: 20px;\r\n        border-radius: 5px;\r\n        box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);\r\n        position: relative;\r\n    }\r\n\r\n    \/* Question header *\/\r\n    .question h4 {\r\n        margin-bottom: 20px;\r\n    }\r\n\r\n    \/* Options list *\/\r\n    .options {\r\n        list-style-type: none;\r\n        padding: 0;\r\n    }\r\n\r\n    \/* Option item *\/\r\n    .options li {\r\n        margin: 10px;\r\n        padding: 10px;\r\n        display: flex;\r\n        align-items: center;\r\n        border-radius: 5px;\r\n        border: 2px solid #ccc;\r\n        box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);\r\n    }\r\n\r\n    \/* Option number *\/\r\n    .options li span {\r\n        margin-right: 10px;\r\n        width: 20px;\r\n        height: 20px;\r\n        border-radius: 50%;\r\n        border: 2px solid black;\r\n        display: flex;\r\n        justify-content: center;\r\n        align-items: center;\r\n        font-weight: bold;\r\n    }\r\n\r\n    \/* Option colors *\/\r\n    .options li span.option-a {\r\n        background-color: #FFD700; \/* Yellow *\/\r\n    }\r\n\r\n    .options li span.option-b {\r\n        background-color: #FF1493; \/* Pink *\/\r\n    }\r\n\r\n    .options li span.option-c {\r\n        background-color: #00BFFF; \/* Light Blue *\/\r\n    }\r\n\r\n    .options li span.option-d {\r\n        background-color: #7CFC00; \/* Green-Yellow *\/\r\n    }\r\n\r\n    .options li span.option-e {\r\n        background-color: #EE82EE; \/* Purple-Pink *\/\r\n    }\r\n\r\n    \/* Show answer button *\/\r\n    .show-answer {\r\n        background-color: #0066CC;\r\n        color: #fff;\r\n        border: none;\r\n        padding: 8px 20px;\r\n        font-size: 20px;\r\n        cursor: pointer;\r\n        border-radius: 3px;\r\n        text-align: center;\r\n        display: inline-block;\r\n        margin-bottom: 20px;\r\n    }\r\n\r\n    \/* Answer box *\/\r\n    .answer-box {\r\n        margin: 0 auto;\r\n        padding: 10px;\r\n        font-size: 20px;\r\n        color: #61970F;\r\n        box-sizing: border-box;\r\n        display: none;\r\n    }\r\n\r\n    \/* Question header *\/\r\n    .quiz-container .question-header {\r\n        color: darkblue;\r\n        font-weight: bold;\r\n        margin-right: 10px;\r\n    }\r\n\r\n    \/* Question header and text *\/\r\n    .quiz-container .question-header,\r\n    .quiz-container .question-text {\r\n        display: inline;\r\n        font-weight: bold;\r\n    }\r\n\r\n    \/* Responsive styles *\/\r\n    @media (max-width: 767px) {\r\n        .quiz-container {\r\n            padding: 10px;\r\n        }\r\n    }\r\n<\/style>\r\n<div class=\"quiz-container\">\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. Services rendered under microfinance is\/are:\r\n\r\nCredit facilities\r\nSavings facilities\r\nInsurance facilities\r\nFund transfer facilities\r\nSelect the correct answer using the codes given below the lists:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63729\">(i) &amp; (iv) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63729\">(ii) &amp; (iii) only<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63729\"> (i) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63729\"> (i), (ii), (iii) &amp; (iv)<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">The acronym SRO, being used in the capital market for various market participants, stands for which one of the following?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63730\"> Self Regulatory Organisations<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63730\">Securities Roll-back Operators<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63730\">Small Revenue Operators<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63730\">Securities Regulatory Organisations<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">In case of the recent Yes Bank crisis:\r\n\r\nRBI superseded the Board of \u2018Yes Bank\u2019 through RBI Act 1934\r\nRBI acted as \u2018Lender of Last Resort\u2019\r\nSelect the correct answer using the code given below:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63731\"> (ii) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63731\">Both (i) &amp; (i)<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63731\"> (i) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63731\"> Neither (i) nor (ii)<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following functions are part of the Reserve Bank of India (RBI) acting as Banker to Banks?\r\n\r\nEnabling banks to maintain their accounts with RBI for statutory reserve requirements\r\nEnabling settlement of interbank transfer of funds\r\nRBI provides short term loans and advances to banks\r\nActing as lender of last resort\r\nSelect the correct answer using the code given below:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63732\">(i) &amp; (ii) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63732\">(i), (ii) &amp; (iii) only<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63732\"> (i) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63732\">All of the above<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Bank rate is that rate on which\u2013<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63733\">Central Bank of Country lends money to the commercial banks<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63733\">Rural bank gives loan to cooperative societies<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63733\">Any bank lends money to an individual<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63733\">State Bank of India gives loan to the rural banks<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following could create a hindrance in achieving the objective of inflation targeting by RBI?\r\n\r\nGovernment deviating from the fiscal road map\r\nImpediments in monetary policy transmission\r\nSupply-side bottlenecks\r\nSelect the correct answer using the code given below:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63734\"> (i) &amp; (ii) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63734\">(ii) &amp; (iii)<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63734\">(i) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63734\"> All of the above<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following operations by RBI will help in \u2018monetary transmission\u2019?\r\n\r\nForex Swap\r\nSale of Government bonds by RBI\r\nOperation Twist\r\nLong Term Repo Operation (LTRO)\r\nSelect the correct answer using the code given below:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63735\">(i) &amp; (ii) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63735\"> (i), (iii) &amp; (iv) only<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63735\"> (ii) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63735\"> All of the above<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Consider the following statements regarding the resolution of Financial Service Providers (FSP) under IBC 2016.\r\n\r\nGovt. of India in consultation with the appropriate regulator will decide which category of FSPs can be taken up for resolution under IBC 2016\r\nTo initiate resolution of FSPs under IBC 2016, the appropriate regulator should make an application\r\nSelect the correct answer using the code given below:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63736\">(ii) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63736\">Both (i) &amp; (ii)<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63736\"> (i) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63736\">Neither (i) nor (ii)<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"b\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Consider the following statements:\r\n\r\nDisinflation is declining rate of inflation but the rate of inflation remains positive\r\nDeflation is general decrease in price level and the inflation rate is negative\r\nSelect the correct answer using the code given below:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63737\"> (ii) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63737\"> Both (i) &amp; (ii)<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63737\">(i) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63737\">Neither (i) nor (ii)<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"b\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following situation may lead to depreciation of a country&#039;s currency with respect to another country:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63738\"> Rise in the interest rate<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63738\"> Increase in exports<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63738\">Foreign Investment inflow<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63738\"> None of the above<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following systems of Note-issue is followed by RBI?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63739\">Minimum Reserve System<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63739\">None of the above<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63739\"> Fixed Fiduciary System<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63739\"> Proportional Reserve System<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Consider the following statements:\r\n\r\nIn Narrow Banking, Banks just accept deposits and provide loans.\r\nIn Narrow Banking, there is rarely Asset Liability Mismatch.\r\nWhich among the above statements is \/ are correct?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63740\">Only 2 is correct<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63740\"> Only 1 is correct<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63740\">Both 1 and 2 are correct<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63740\">None of them is correct<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Which of the following statements are true regarding \u201cTerm Repo Operations\u201d?\r\n\r\nThe interest rate is between reverse repo and repo rate\r\nThe interest rate is above the repo rate\r\nThe interest rate is generally fixed\r\nThe interest rate is generally variable\r\nSelect the correct answer using the code given below:<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63741\">(i) &amp; (iv) only<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63741\"> (ii) &amp; (iii) only<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63741\">(i) &amp; (iii) only<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63741\">(ii) &amp; (iv) only<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"d\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Full convertibility of a rupeee means<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63742\">repayment of loans in terms of rupees<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63742\">determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63742\"> purchase of foreign exchange for rupees freely<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63742\">payment for imports in terms of ruppes<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"b\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Consider the following statements. The function of commercial banks in India includes\r\n\r\nPurchase and sale of shares and securities on behalf of customers.\r\nActing as executors and trustees of wills.\r\nWhich of the statement(s) given above is\/are correct?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63743\">Only 2<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63743\">Neither 1 nor 2<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63743\">Both 1 and 2<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63743\">Only 1<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">\u2018Green Banking\u2019 means :<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63744\">Banks financing farmers<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63744\">Banks financing proenvironmental projects<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63744\">Banks financing agriculture<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63744\">Banks financing irrigation projects<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"b\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Tarapore Committee was associated with which one of the following?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63745\"> Full capital account convertibility<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63745\">Effect of oil prices on the Indian economy<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63745\"> Foreign exchange reserves<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63745\">Special Economic Zones<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">Consider the following statements:\r\n\r\nIncrease in deposit rate results in higher savings\r\nIncrease in deposit rate results in fall in credit off takes\r\nIncrease in deposit rate results in increase in investment\r\nWhich among the above statements is \/ are correct?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63746\">1 &amp; 3<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63746\"> 1 &amp; 2<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63746\">1, 2, 3<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63746\"> Only 1<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">What are \u201cFutures\u201d?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63747\">Securities or commodities sold or bought with the assumption of delivery at a later stage<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63747\"> Particular types and quantities of securities and com-modities bought for selling at higher prices<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63747\"> Shares and debentures bought at a cheaper rate and sold later at high rates<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63747\"> None of these<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"a\">Show Answer<\/button>\r\n    <\/div>\r\n      <div class=\"question\">\r\n      <span class=\"question-header\">Question:<\/span>\r\n      <div class=\"question-text\">For which of the following, the Reserve Bank of India has stipulated a maximum Capital Adequacy Requirements in India?<\/div>\r\n      <ul class=\"options\">\r\n        <li><span class=\"option-a\">A<\/span><label for=\"optA_63748\">Private Sector Banks<\/label><\/li>\r\n        <li><span class=\"option-b\">B<\/span><label for=\"optB_63748\"> Local Area Banks<\/label><\/li>\r\n        <li><span class=\"option-c\">C<\/span><label for=\"optC_63748\"> Banks that Undertake Insurance Business.<\/label><\/li>\r\n        <li><span class=\"option-d\">D<\/span><label for=\"optD_63748\"> Scheduled Commercial Banks<\/label><\/li>\r\n              <\/ul>\r\n      <div class=\"answer-box\"><\/div>\r\n      <button class=\"show-answer\" data-answer=\"b\">Show Answer<\/button>\r\n    <\/div>\r\n  <\/div>\r\n<script src=\"https:\/\/code.jquery.com\/jquery-3.6.0.min.js\"><\/script>\r\n<script>\r\n$(document).ready(function() {\r\n  $('.show-answer').click(function() {\r\n    var answer = $(this).data('answer');\r\n    $(this).siblings('.answer-box').html('The correct answer is: ' + answer).slideDown();\r\n    $(this).hide();\r\n  });\r\n});\r\n<\/script>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Links\"><\/span>Some Important Links <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/subject-wise\/geography\/\" target=\"_blank\" rel=\"noreferrer noopener\">Geography MCQs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/state-gk-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">State GK MCQs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--3\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/current-affairs-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">Daily Current Affairs MCQs<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/ncert\/\" target=\"_blank\" rel=\"noreferrer noopener\">NCERT MCQs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/subject-wise\/indian-history\/\" target=\"_blank\" rel=\"noreferrer noopener\">Indian History MCQs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/mcqs\/category\/subject-wise\/indian-polity\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Indian Polity MCQ<\/strong>s<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"Free-GK-MCQ-App\"><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.edunovations.quiz\" target=\"_blank\" rel=\"Free GK MCQ App noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"900\" height=\"150\" src=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App.jpg\" alt=\"Free GK MCQ App\" class=\"wp-image-743\" title=\"Free GK MCQ App\" srcset=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App.jpg 900w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App-300x50.jpg 300w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Free-MCQ-App-768x128.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><figcaption class=\"wp-element-caption\">Free GK MCQ App<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\" id=\"Free-Daily-Current-Affairs-MCQ-App\"><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.edunovations.quiz\" target=\"_blank\" rel=\"Free Daily Current Affairs MCQ App noopener\"><img decoding=\"async\" width=\"900\" height=\"150\" src=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2.jpg\" alt=\"Free Daily Current Affairs MCQ App\" class=\"wp-image-744\" title=\"Free Daily Current Affairs MCQ App\" srcset=\"https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2.jpg 900w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2-300x50.jpg 300w, https:\/\/edunovations.com\/mcqs\/wp-content\/uploads\/2023\/06\/Banner-current-affairs-2-768x128.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><figcaption class=\"wp-element-caption\">Free Daily Current Affairs MCQ App<\/figcaption><\/figure>\n\n\n\n<script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6643489308705072\" crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\" style=\"display:block\" data-ad-format=\"autorelaxed\" data-ad-client=\"ca-pub-6643489308705072\" data-ad-slot=\"2759669284\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Money Supply Banking And Financial Institutions &#8211; Indian Economy GK MCQ ( \u092e\u0941\u0926\u094d\u0930\u093e \u0906\u092a\u0942\u0930\u094d\u0924\u093f \u092c\u0948\u0902\u0915\u093f\u0902\u0917 \u0914\u0930 \u0935\u093f\u0924\u094d\u0924\u0940\u092f \u0938\u0902\u0938\u094d\u0925\u093e\u0928 ) Enhance your knowledge of money supply, banking, and financial institutions with a comprehensive collection of Multiple Choice Questions (MCQs) sourced from previous year papers of various competitive exams, including UPSC IAS. Test your understanding, sharpen your 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