GK FOR BANKING EXAM - QUIZ- 2

BANKING - GK  QUIZ- 2

1. A rise in general level of prices may be caused by:

(1).An increase in the money supply

(2).A decrease in the aggregate level of output.

(3). An increase in the effective demand.

Select the correct answer using the codes given below.

[A] 1 only                                [B] 1 and 2 only

[C] 2 and 3 only                      [D] 1,2, and 3

2. Which one of the following is likely to be most inflationary in its effect?

[A] Repayment of public debt

[B] Borrowing from the public to finance a budget deficit.

[C] Borrowing from banks to finance a budget deficit.

[D] Creating new money to finance a budget deficit.

3. Which one of the following groups of items is included in India’s foreign- exchange reserves?

[A] Foreign- currency assets, Special Drawing Rights (SDR) and loans from foreign countries.

[B] Foreign- currency assets, gold holdings of the RBI and SDRs

[C] Foreign- currency assets, loans from the World Bank and SDRs.

[D] Foreign- currency assets, gold holdings of the RBI and loans from the World Bank.

4. Supply of money remaining the same when there is an increase in demand for money, there will be,

[A] A fall in the level of prices

[B] An increase in the rate of interest.

[C] An increase in the level of income and employment

[D] A decrease in the rate of interest

5. Economic growth in the country X will necessarily have to occur if

[A] There is technical progress in the world economy

[B] There is population growth in X

[C] There is capital formation in X

[D] The volume of trade grows in the world economy

6. The national income of a country for a given period is equal to the

[A] Total value of goods and services produced by nationals

[B] Sum of total consumption and investment expenditure.

[C] Sum of personal income of all individuals

[D] Money value of final goods and services produced.

7. Who among the following constitute the National Development Council?

(1). The Prime Minister

(2). The Chairman, Finance Commission

(3). Ministers of the Union Cabinet

(4). Chief Ministers of the States

[A] 1,2 and 3 only                   [B] 1,3,and 4 only

[C] 2 and 4 only                      [D] 1, 2, 3, and 4

8. Which of the following grants/ grant direct credit assistance to rural households?

(1). Regional Rural Banks

(2). National Bank for Agriculture and Rural Development

(3). Land Development Banks

Select the correct answer using the codes given below,

[A] 1 and 2 only          [B] 2 only

[C] 1 and 3 only          [D] 1,2, and 3

9. What will follow if a Money Bill is substantially amend by Rajya Sabha?

[A] The Lok Sabha may still proceed with the Bill, accepting or not accepting the recommendations of the Rajya Sabha.

[B] The Lok Sabha cannot consider the Bill further

[C] The Lok Sabha may send the Bill to the Rajya Sabha for reconsideration.

[D] The President may call a joint sitting for passing Bill

10. The balance of payments of a country is a systematic record of

[A] All import and export transactions of a country during a given period of time, normally a year

[B] Goods exported from a country during a year

[C] Economic transaction between the governments of one country to another

[D] Capital movements from one country to another

               ANSWER

1	D	6	D
2	D	7	B
3	B	8	C
4	B	9	A
5	C	10	C