Indian Economy MCQ Set-15

Indian Monetary System MCQ for competitive examinations in India such as UPSC CSE, State PSC, IBPS PO, SBI PO, IBPS SO, IBPS RRB, IBPS Clerk and various government & public sector undertaking jobs in India.

Q.1 Choose the correct option from the below statements

Statement 1: The reforms of 1991 neglected the agricultural sector

Statement 2: Direct tax consists of taxes on income of individuals and profit of businesses

A. Both are correct

B. Only statement 1 is correct

C. Only statement 2 is correct

D. None of these

Answer: A. Both are correct

Q.2 Which of the following statement favor privatization?

A. It creates competitive environment

B. It protects consumer’s sovereignty

C. Reduction in Bureaucratic Processes

D. All of the above

Answer: D. All of the above

Q.3 Under the economic reform of 1991, which of the following was introduced in the private sector?

A. Reduction of CRR and SLR

B. Introduction of private player in banking sector

C. Both A & B

D. None of the above

Answer: A. Reduction of CRR and SLR

Note: CRR- Cash Reserve Ration, SLR- Statutory Liquidity Ratio

Q.4 The economic system, in which trade can be carried out through exchange of goods and services in called as:

A. Monetary system

B. Barter system

C. Goods and Service System

D. None of these

Answer: B. Barter System

Q.5 Which of the following is a function of money?

A. Medium of exchange

B. Measure of Value

C. Store of Value

D. All of the above

Answer: D. All of the above

Note: Money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

Q.6 The supply of money is a:

A. Store concept

B. Stock concept

C. Monetary concept

D. None of the above

Answer: B. Stock concept

Note: Money supply is a stock concept similar to money demand. the total stock of money in circulation among the public at particular point of time is called money supply. The RBI publishes the money supply figures according to the stock of money circulating in public.

Q.7 Which of the following is NOT a feature of money supply?

A. It includes money held by the banks

B. It includes money held by the public

C. It is a stock concept

D. None of these

Answer: B. It includes money held by the public

Q.8 High powered money is a money produced by:

A. RBI

B. Government

C. Commercial Banks

D. None of these

Answer: Both A & B

Note: High powered money refers to the money produced by RBI and government of India. High-powered money is the sum of commercial bank reserves and currency (notes and coins) held by the Public.

Q.9. Which of the following is NOT included in the high powered money?

A. Currency & coins held by the public

B. Commercial banks reserves

C. Demand deposits with banks

D. None of these

Answer: C. Demand deposits with banks

Note: High-powered money is the sum of commercial bank reserves and currency (notes and coins) held by the Public.

Q.10 Which of the following function allows payment to be delayed to a future date?

A. Measure of value

B. Medium of exchange

C. Store of value

D. Standard of deferred payment

Answer: D. Standard of deferred payment

List of Indian Economy MCQ sets from GKLead.com

Tags: , , , , , , ,