Money and Banking-Online Practice Exam 3
Money and Banking-Online Practice Exam 3

Money and Banking-Online Practice Exam 3

NET / SET Online Practice Exams

Money and Banking

Test

Multi-choice 3

Question

1. According to a notification of Central government, which of the following is the lower and upper tolerance limit of consume Price Index base inflation rate for the purpose of deciding the policy Repo Rate-

Answers

1 per cent, 5 per cent

2 per cent, 6 per cent

3 per cent, cent, 7 per cent

None of the above

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Question

2. Policy Repo Rate in India is decided by  

Answers

Ministry of Finance

Governor of RBI

Indian Bank’s Association

Monetary Policy Committee

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Question

3. Which of the following statement is correct about the Monetary Policy Committee (MPC)?

  1. MPC was constituted on the recommendation of Urjit Patel Committee
  2. MPC was constituted on 29 September, 2016
  3. MPC has 6 members, 3 from the RBI and 3 nominated by the government of India
  4. The term of office of the government nomi- nated members is 4 years

Answers

Only I

Only I and III

All I, II, III and IV

Only I, II and III

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Question

4. CMatch the List-I and List-II and choose the correct code given below-

List I  List II
a. Liquidity Adjustment Facility (LAF) i. Rediscount bills of exchange
b. Marginal Standing Facility (MSF) ii. Purchase and sale of government securities
c. Bank Rate iii. Repo rate
d. Open Market Operations iv. Borrowing of additional amount of money

Answers

a.iii, b.iv, c.i, d.2

a.ii, b.iv, c.i, d.iii

a.iii, b.iv, c.ii, d.i

a.iii, b.ii, c.i, d.iv

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Question

5. Bench mark inflation target limit of CPI based inflation rate, notified by the government of India ending on-

Answers

March 31, 2020

March 31, 2021

March 31, 2022

March 31, 2023

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Question

6. Which of the following is a non-banking financial institution?

  1. National Housing Bank
  2. NABARD
  3. Export-Import Bank
  4. SIDBI

Answers

 Only II

Only I and III

Only II and III

All I, II, III and IV

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Question

7. Which of the following is not a characterstics of a non-banking financial institution (NBFC)?

Answers

NBFC cannot accept deposits from the public

Pawn shops are a type of NBFCs

NBFC can accept deposits from the public

NBFCs provide services that are not necessa- rily suited to banks

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Question

8. Which of the following pairs is/are matched correctly?

  1. Risk Pooling Institution-Life Insurance Corporation of India
  2. Contracted Saving Institutions-Foreign Institutional Investors

Answers

Only I

Only II

Both I and II

Neither I nor II

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Question

9. The banking, securities and insurance markets have become increasingly integrated. Which of the following pair is/are matched correctly in regard to an approach to supervision?

  1. A three-pillar or sectoral model-Banking
  2. A two-pillar or twin peak model-Prudential and business conduct.

Answers

Only I

Only II

Both I and II

Neither I nor II

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Question

10. Which of the following is the regulator of capital markets in India?

Answers

Securities and Exchange Board of India

Reserve Bank of India

Registrar of Companies

Ministry of Corporate Affairs

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