Public Finance-Online Practice Exam 11
Public Finance-Online Practice Exam 11

Public Finance-Online Practice Exam 11

NET / SET Online Practice Exams

Public Finance

Test

Multi-choice 11

Question

1. The most volatile part of the organised money market is the

Answers

Call money market

Gilt edged market

Commercial bill market

Bonds market

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Question

2. Which is acceptable under statutory liquidity ratio ?

Answers

Reliance shares

Equity shares

Treasury bills

L & T shares

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Question

3. By issuing bill of exchange, banks earn through 

Answers

Discount

Dividend

Interest

None of the above

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Question

4. During the period of depression, credit creation is

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More

Unchanged

Less

None of the above

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Question

5. People deposit in National Saving Certificates because

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They want to plan for future

They want to save on tax

To earn high rate of interest

None of the above

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Question

6. Time deposit/demand deposit ratio is decided by

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Public

RBI

State Government

Central Government

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Question

7. An increase in the  will lead to

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Constant Bank Credit

An increase in Bank Credit

A decrease in Bank Credit

None of the above

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Question

8. Total credit allocated as on April-2000 is a

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Wealth concept

 Flow concept

Stock concept

None of the above

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Question

9. Bank rate is decided by

Answers

RBI

Public

Business

Market forces

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Question

10. Ratio of currency and deposit is decided by

Answers

Market forces

RBI

Business

Public

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