B.Com 3rd Year Money and financial Online Test Content in The Article Toggle MONEY AND FINANCIAL SYSTEM ONLINE TESTMoney and Financial System Chapter 1st = Money: Definition, Functions and ImportanceMoney: Definition, Functions and ImportancePlease Give Your InformationFor start the QuizMoney and Financial System Chapter 2nd = Concept of Money SupplyPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 3rd = Finance Meaning, Types and ImportancePlease Give Your InformationFor start the QuizMoney and Financial System Chapter 4th = Financial SystemPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 5th = Bank: Definition and FunctionsPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 6th = Structure of Commercial Banking in IndiaPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 7th = Balance Sheet ofBalance Sheet ofPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 8th = Regional Rural BanksRegional Rural BanksPlease Give Your InformationFor start the Quiz Money and Financial System Chapter 9th = Co-operative Banking in IndiaCo-operative Banking in IndiaPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 10th = Process of Credit CreationProcess of Credit CreationPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 11th = Development BanksDevelopment BanksPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 12th = Unregulated Credit Market in IndiaPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 13 =Reserve Bank of IndiaReserve Bank of IndiaPlease Give Your InformationFor start the QuizMoney and Financial System Chapter 14 = Monetary PolicyPlease Give Your InformationFor start the Quiz Money and Financial System Chapter 13 =Reserve Bank of India /73 0 This Quiz Time only 10 minutes Your Time is Finish 10 minutes Thanks for Giving This Test. All Question Reserve Bank of India Reserve Bank of India Please Give Your Information For start the Quiz NameEmailPhone Number 1 / 73 73. Rate at which RBI gives loan to commercial bank is called: Credit rate Loan rate Bank rate Discount rate 2 / 73 72. Credit policy is formulated by: Finance Ministry Government RBI Commercial Bank 3 / 73 71. Which is acceptable to under SLR? Shares Debentures Treasury Bills None of these 4 / 73 70. Cash Reserve Ratio is determined by: RBI Commercial Market Forces Bank None of these 5 / 73 69. Bank rate is decided by: RBI Commercial Bank Market Forces None of these 6 / 73 68. Who is incharge of custody of foreign exchange? Finance Ministry Commerce Ministry Reserve Bank of India None of above 7 / 73 67. Investment of commercial bank in approved securities required under: Statutory Liquidity Ratio Cash Reserve Ratio Equity Ratio Debt Ratio 8 / 73 66. Cash reserve with Central Bank is called: Statutory Liquidity Ratio Cash Reserve Ratio Equity Ratio Debt Ratio 9 / 73 65. Which instrument of monetary policy is used frequently by RBI? Discount Policy Reserve Requirements Open Market Operations Margin requirements 10 / 73 64. , Open market is not successful in India because: Saving is low Investment is low Bill market is underdeveloped Export is low 11 / 73 63. In case should RBI wants to increase rate of interest, then it should Sell securities Buy securities Hold securities None of these 12 / 73 62. Buying and selling of securities central Bank is called Closed market operations Open market operations Open debt operations None of above 13 / 73 61. Flow of credit to specific purpose is controlled by: Quantitative credit control Selective credit control Both (a) and (b) None of the above 14 / 73 60. Margin requirement is an example of Quantitative credit control Selective cerdit control Both (a) and (b) None of the above 15 / 73 59. For speculators, margin money is kept, High Low same as for other sectors None of the above 16 / 73 58. For priority sectors, margin money is kept High Low Same as for other sectors None of above 17 / 73 57. Which of the following are method of credit control? Bank rate policy Margin money requirement Variable reserve system All of above 18 / 73 56. Which of the following is an instrument of selective credit control? Bank rate policy Margin money requirement Variable reserve system All of above 19 / 73 55. Rationing of credit takes place when Demand for credit is zero Demend for credit is higher than supply Demend for credit is low None of the above 20 / 73 54. Margin requirement is high in case of Agriculture Export Small scale sectors Speculative activities 21 / 73 53. Statutory Reserves are kept with: State Bank of India Reserve Bank of India Scheduled/Commercial Bank None of these 22 / 73 52. Cash Reserves are kept with: State Bank of India Reserve Bank of India Scheduled Bank None of these 23 / 73 51. Due to increase in statutory liquidity ratio, credit is: Increased Decreased No effect None of these 24 / 73 50. As compared to prevailing interest rates, bank rate is: Lesser Higher Similar None of these 25 / 73 49. Purchase of Government securities by Reserve Bank will: Increase quantity of money Decrease quantity of money Increase government expenditure Decrease Government expenditure 26 / 73 48. When Central Bank wants to increase credit, it should: Increase bank rate Sale of Government securities in market Decrease in bank rate Increase in CRR 27 / 73 47. For issuing notes, which of the following system Reserve Bank of India? Minimum and Proportionate Reserve System Minimum Reserve System Fixed fiduciary Issue System None of the above 28 / 73 46. Coin of one repee in India is minted by: Government of India State Bank of India Reserve Bank of India Commercial Bank 29 / 73 45. Which bank issue note of 7 500 in India: Commercial Banks State Bank of India Reserve Bank of India None of these 30 / 73 44. Which of the following cannot be used as an instrument to neutralise open market operations? Keep low reserves Keep high reserves Discount eligible bills with RBI Replenish cash 31 / 73 43. If rationing of credit is done with reference to the total amount, it is a: Qualitative control Quantitative control Administrative control Administrative control 32 / 73 42. Which of the following is the method for selective credit controls? Regulation of margin requirements Regulation of consumer credit Rationing of credit All of the above 33 / 73 41. As a bank borrow more from the Reserve Bank of India, its net liquidity ratio: Drops Remain same Rises None of these 34 / 73 40. Open market operations do not play the role of an instrument of credit to a large extent in our country because: Government securities market in India is very broad based Government securities market in India is very narrow No government securities exist in market None of these 35 / 73 39. When central bank buys securities, bank reserves: Expand Contract Remain the same Have no bearing with the change 36 / 73 38. Open Market Operations involve: Sale of government shares Purchase of government bonds Sale and purchase of securities by central bank Transaction in the share market 37 / 73 37. By raising the minimun net liquidity ratio for the purpose of borrowing, the banks may be induced to: Lend more to commercial sector Utilise less of deposits Lend less to commercial sector None of the above 38 / 73 36. Bank borrows more from RBI when: Net liquidity ratio rises Net liquidity ratio falls Cash reserve ratio rises Cash reserve ratio falls 39 / 73 35. The impact of cost of bank credit on the decisions to hold stocks can be quite severe if: There is a slight fall in lending rate Rise in lending rate is low Rise in lending rate is steep There is steep fall in lending rate 40 / 73 34. A fall in bank rate leads to: Lowering of lending rates of commercial banks Expansion of bank credit Contraction of bank credit Both (a) and (b) 41 / 73 33. Bank rate’ was also known as: Clearing rate Interest rate Discount rate Lending rate 42 / 73 32. Which of the following is not a credit control instrument? Tax rate modification Open market operation Power to vary reserve requirements Bank rate 43 / 73 31. Which of the following is not a form of selective or qualitative control? Essential and non-essential uses of credit are distinguished Only non-essential uses are brought under the scope of central bank controls Open market operations None of these 44 / 73 30. Choose the correct statement regarding ‘selective controls”: Can control all forms of credit Can control bank credit Will operate under all conditions None of the above 45 / 73 29. Selective controls’ operate best in: Deflationary conditions Depression Inflationary conditions Unemployment conditions 46 / 73 28, “Credit rationing”, is a method of controlling regulating: Credit to show increased liabilities Credit so as to build liquidity The purpose for which credit is granted by commercial banks None of the above 47 / 73 27. Which of the following is incorrect with regard to open market operations? Refer to buying and selling of securities and bills in the money market Influence credit operation of commercial banks Influence to bank rate as a determinant of money supply Affect country’s economy and business activity 48 / 73 26. Bank rate is ineffective if: Commercial bank have large resources Commercial banks have limited resources Commercial banks have limited liability Commercial bank are privately owned 49 / 73 25. “Bank Rate” is not Rate of interest provided against short-term deposits Rate at which commercial banks get accommodation from the RBI Rate at which a commercial bank can obtain additional cash reserves from RBI by rediscounting its securities A determinant of lending rates of commercial bank 50 / 73 24. For controlling deflation, RBI would: Increase bank rate Reduce bank rate Not change the bank rate None of these 51 / 73 23. Which of the following system possesses great elasticity? Minimum reserve system Proportional reserve system Fixed fiduciary issue system None of the above 52 / 73 22. At present, the Governor of the R.B.I. is: Raghu Ram Rajan M. Gopalkrishnan D. Subbarao None of these slatkais Dej 53 / 73 21. Which one of the following is a qualitative weapon credit control? Bank Rate Variable Reserve ratio Moral Suasion None of the these 54 / 73 20. Which one of the following is a quantitative weapon of credit control? Variable Reserve ratio Direct action Regulation of consumer credit Moral suasion 55 / 73 19. RBI has promoted: National Housing Bank National Bank for Agriculture and Rural Development EXIM Bank All of the above 56 / 73 18. Rationing of credit is a: Quantitative credit control method Selective credit control method Direct credit control method None of the above 57 / 73 17. Which of the following methods is not a quantitative credit control method? Open market operation Bank rate Variation of cash reserve ratio Direct action 58 / 73 16. Credit control function is done by the following bank Industrial development Bank of India Reserve Bank of India State Bank of India None of the above 59 / 73 15. Reserve Bank of India was started as a bank owned by: Private Individuals Central Government Central and State Government None of the above 60 / 73 14. In India Monopoly of Note Issue is in the hands of: Central Bank of India State Bank of India Reserve Bank of India None of these 61 / 73 13. Interest rates given by banks on deposits by: The market The RBI forces The Indian Banks Association The individual banks 62 / 73 12. One rupee currency notes of India is issued by: The Ministry of Finance, Government of India The Reserve Bank of India The State Bank of India Concerned State Government 63 / 73 11. R.B.I. is governed by the: Banking Company Regulation Act. RBI Act 1934 Central Finance Act None of the above 64 / 73 10. Capital at the time of establishment of Reserve Bank was: ₹ 50 crore ₹ 5 crore ₹ 500 crore None of these 65 / 73 9. Which of the following function can be performed by RBI? Carry on a business Purchase of fixed assets for Government Arrangement of Foreign Exchange Providing credit to Industrialists 66 / 73 8. Which of the following function is not performed by RBI? Issue of Notes Banker to the Government Payment of interest on deposits Lender of the last resort 67 / 73 7. How many members are there in the Board of Director of the RBI? 5 2 20 7 68 / 73 6. Reserve Bank Act was passed in: 1931 1934 1937 1933 69 / 73 5. Name of Central Bank of India is: Reserve Bank of Bank Imperial Bank State Bank of India None of these 70 / 73 4. Which of the following bank performed central banking functions before establishment of RBI? State Bank of India Bank of India Central Bank of India Imperial Bank 71 / 73 3. Head Office of RBI is situated in: Delhi Mumbai Chennai Kokatta 72 / 73 2. RBI was nationalised in: 1933 1934 1949 1935 73 / 73 1. Reserve Bank of India was established in: 1st April 1935 1st August 1950 15th August 1947 26th January 1949 Your score is LinkedIn Facebook Twitter VKontakte 0% Restart quiz Please Give Your Review Send feedback Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15