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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Currency and Inflation Set 3

Q1 | Which of the following Mahatma Gandhi series of currency notes issued by the RBI hasa drawing of the 'Parliament House' depicted on it? [SSC Graduate 2003]
  • Rs. 500
  • Rs. 100
  • Rs. 50
  • Rs. 10
Q2 | Which of the following Mahatma Gandhi series of currency notes issued by the RBI has "ecology" depicted on it? [SSC Graduate 2003]
  • Rs. 500
  • Rs. 100
  • Rs. 50
  • Rs. 5
Q3 | All of the following are subsidiaries of the State Bank of India, except:
  • State Bank of Bikaner and Jaipur
  • Central Bank of India
  • State Bank of Hyderabad
  • State Bank of Patiala
Q4 | Consider the following events: 1. Conversion of Imperial Bank of India into S.B.I. 2. Establishment of NABARD 3. Setting up of RRBs 4. Nationalisation of R.B.I. The correct chronological sequence of these events is : [CDS 1999]
  • 4, 1, 2, 3
  • 4, 1, 3, 2
  • 1, 4, 3, 2
  • 1, 4, 2, 3
Q5 | Word Bull and Big are associated with which branch of commercial activity? [UP PCS 2002]
  • Foreign Trade
  • Banking
  • Share Market
  • Manufacturing
Q6 | How do we define the terms bull and bear with regard to stock markets?
  • A bull is an optimistic operator who first buys and then sells shares in expectation of the price going up; a bear is a pessimistic market operator who sells the shares in expectation of buying them back at a lower price
  • There is nothing significantly different as both operate in the capital market
  • Bull is one who first sells a share and then buys it at a lower price; bear means one who first buys and then sells it in expectation of prices going up
  • A bull is ready to buy any share; a bear only deals in government securities
Q7 | The first Bank established in India was
  • Punjab National Bank
  • Traders Bank
  • State Bank of India
  • Bank of Hindustan
Q8 | In India, the first bank of limited liability managed by Indians and founded in 1881 was:
  • Hindustan Commercial Bank
  • Oudh Commercial Bank
  • Punjab National Bank
  • Punjab and Sind Bank
Q9 | Which amidst the following rural banks has been named after a river? [NDA 2002]
  • Prathama Bank
  • Varada Grameen Bank
  • Thar Anchalik Grameen Bank
  • Aravali Kshetriya Grameen Bank
Q10 | A Scheduled Bank is one which is included in the: [CPO SI 2002]
  • II Schedule of Banking Regulation Act
  • II Schedule of Constitution
  • II Schedule of Reserve Bank of India Act
  • None of the above
Q11 | What is the animal on the insignia of the RBI ? [CPO SI 2002]
  • Lion
  • Tiger
  • Panther
  • Elephant
Q12 | For regulation of the Insurance Trade in the country the Government has formed: [UPPCS 2002]
  • SEBI
  • Reserve Bank of India
  • Insurance Regulatory and Development Authority
  • General Insurance Corporation
Q13 | The best way, a bank can avoid loss is to :
  • lend only to individuals known to the bank
  • accept sound collateral
  • give only short-term loans
  • lend only to bank's old customers
Q14 | The system of value added taxation is applicable to:
  • excise duties
  • income tax
  • estate duty
  • taxes on agricultural income
Q15 | In order to be scheduled to the Reserve Bank of India, a bank should have capital andreserve of not less than:
  • 1 lakh
  • 5 lakhs
  • 10 lakhs
  • 50 Iakhs
Q16 | The number of Banks nationalised since 1969 is : [PCS 1994]
  • 8
  • 12
  • 14
  • 20
Q17 | The largest Public Sector Bank in India is: [CDS 1991]
  • Central Bank
  • State Bank of India
  • Punjab National Bank
  • Indian Overseas Bank
Q18 | Which of the following is the Banker of the Banks? [Railways 1995]
  • IDBI
  • SBI
  • RBI
  • SBI and RBI
Q19 | Which of the following is not true about the Reserve Bank of India?
  • It regulates the currency and credit system of India
  • It maintains the exchange value of the rupee
  • Foreign exchange reserves are kept by RBI
  • One rupee notes and coins are issued by RBI
Q20 | When was the Reserve Bank of India taken over by the Government? [PCS 1994]
  • 1945
  • 1948
  • 19S2
  • 1956
Q21 | Who is responsible for the collection and publication of monetary and financial information?
  • Finance Commission
  • Finance Ministry
  • Reserve Bank of India
  • Auditor and Comptroller General of India
Q22 | The Reserve Bank of India issues:
  • all the currency notes
  • all the currency notes except the one rupee note
  • all the currency notes except the hundred rupee note
  • only notes of Rs. 10 and above
Q23 | Nationalisation of banks was done with the purpose of:
  • financing the industries
  • improving credit facilities
  • consolidating the economy
  • improving security of deposits
Q24 | Which two of the following nationalized banks have been merged as per the recommendation of the Narsimhan Committee? [NDA 1995]
  • New Bank of India and Bank of India
  • Central Bank of India and Corporation Bank
  • Parur Bank of India and Bank of India
  • Punjab National Bank and New Bank of India
Q25 | The acronym SRO, being used in the capital market for various market participants, stands for which one of the following? [CDS 2008]
  • Self-Regulatory Organisations
  • Small Revenue Operators
  • Securities Roll-back Operators
  • Securities Regulatory Organisations