CBSE Questions for Class 12 Commerce Economics Money And Banking Quiz 4 - MCQExams.com

Merchant Bank also known as ______.
  • NABARD
  • investment bank
  • commercial bank
  • development bank
Technique of 'Transaction Analysis' was developed by __________.
  • Elton Mayo
  • Peter Drucker
  • Eric Berne
  • Adam Smith
The RBI introduced participation certificates in _______.
  • 1969
  • 1970
  • 1971
  • 1972
Merchant banking is generally ________ in character.
  • national
  • international
  • rural
  • none of the above
The RBI is managed by the Central Board of Directors comprising ________.
  • 10 members
  • 15 members
  • 21 members
  • 25 members
The head office of the RBI is located at __________.
  • New Delhi
  • Kolkata
  • Mumbai
  • Chennai
Which of the following is NOT a function of central bank? 
  • Advisor to the government
  • Management of foreign exchange reserves
  • Expansion of credit
  • Lender of the last resort
In India, the Commercial Banks are given license of operation by _________.
  • The Government of India
  • The Ministry of Finance
  • Reserve Bank of India
  • Banking Companies Regulation Act. 1949
The RBI has introduced prudential accounting norms for banks since ______.
  • 1980-81
  • 1990-91
  • 1992-93
  • 1997-98
Which committee made a number of suggestions to overcome the defects of the indian banking system?
  • Dantwala Committee
  • Narasimham Committee
  • Khusro Committee
  • Kelkar Committee
The RBI laid down capital adequacy norms in _______.
  • April 1989
  • April 1992
  • March 1996
  • March 2000
What does Greesham's Law state?
  • Good money replaces bad money in circulation
  • Bad money replaces good money in circulation
  • Good money promotes bad money in the system
  • Bad money promotes good money in the system
RBI ensures that bank operate within the set norms by conducting _________ inspections and  ______  monitoring
  • On site, off site
  • Off site, on site
  • On site, field
  • Field, on site
The RBI shareholding in SBI has been reduced to ______.
  • 50 per cent
  • 55 per cent
  • 60 per cent
  • Nil as it was transferred to government in 2007
What type of instruments are traded in a Money Market?
  • Treasury bills
  • Commercial bills
  • Call money
  • All of these
The provisions of General Reserve in Banking Companies are made keeping in view the provisions of__________.
  • Indian Companies Act, 1956
  • Banking Companies Act, 1949
  • SEBI Act, 1992
  • Statutory Auditor
"Capital adequacy norms" is laid down by _________.
  • EXIM Bank
  • NABARD
  • RBI
  • RRBs
What do you mean by reverse-repo?
  • Injecting liquidity by the Central Bank of a country through purchase of Govt securities
  • Absorption of liquidity from the market by sale of Govt securities
  • Balancing liquidity with a view to enhance economic growth rate
  • Improving the position of availability of the securities in the market
The expected rate of return of the money market is _________.
  • Less
  • More
  • Zero
  • Very High
Fund means __________.
  • Capital
  • Bond
  • Assets
  • Working Capital
In a broader sense, cash includes ________________.
  • Nodes and coins
  • Bank balance
  • Bank drafts
  • Markable securities
  • All of the above
In which of the following fund transfer mechanisms, can funds be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
  • RTGS
  • NEFT
  • TT
  • EFT
By increasing repo rate, the economy may observe the following effect(s) ____________________.
  • Rate of interest on loans and advances will be costlier.
  • Industrial output would be affected to an extent.
  • Banks will increase rate of interest on deposits.
  • All of these
Many times we see banks advertise - "Anywhere Banking: Anytime Banking". Which of the following products/facilities launched by banks make it possible for the customers to avail banking services 24 hours all seven days?
A. ATM
B. Internet Banking
C. Universal cheque book facility
  • Only (A)
  • Only (B)
  • Both (A) and (B)
  • All (A), (B) and (C)
Only institutional investors can participate in __________.
  • Foreign market
  • Loan market
  • Capital market
  • Money market
Money market deals in _____________________.
  • Short term Securities
  • Medium term securities
  • Long term Securities
  • None of these
According to traditional approach the average cost of capital ________________________________.
  • Remains constant up to a degree of leverage and rise sharply thereafter with even increase in leverage
  • Rises constantly with increase in leverage
  • Decreases up to a certain point, remains unchanged for moderate increase in leverage and rises beyond a certain point
  • Decreases at an increasing rate with increase in leverage
  • Increase up to certain point remains constant for moderate decrease in leverage and decreases beyond a certain point.
Various banks in the country have installed machines which disburse money to general public. These machines are called _______.
  • coin dispensing machines
  • ATMs
  • debit card machines
  • ledger machines
Many a time we read in newspaper about the benefits of National Electronic Funds Transfer (NEFT), a delivery service launched by the bank. Why do banks advocate for such delivery channels?
A. It is a system in which no physical transfer takes place, hence risk is very low.
B. In this system banks are not required to transfer any money actually to the account of the customer. Only book adjustment is done. Hence actual fund is not needed.
C. This facility is available to anybody at any place. Even having a bank account is not at all necessary.
  • Only (A) is correct
  • Only (B) is correct
  • Only (C) is correct
  • Both (A) and (B) are correct
What is a 'Debit Card'?
  • It is a card issued by a Rating Agency.
  • It is a card which can be used for withdrawing cash or making payment even in the absence of any balance in the account
  • It is a card which can be used for withdrawing cash or making payment if there is balance in the account.
  • It is a card which carries prepaid balance.
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Economics Quiz Questions and Answers