SECTION-6
Economics Multiple Choice Questions
 
Q71. With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?   [UPSC (Pre) 2010]

(A) The Banking Ombudsman is appointed by the Reserve Bank of India
(B) The Banking Ombudsman can consider complaints from non-resident Indians having accounts in India
(C) The order passed by the Banking Ombudsman are final and binding on the parties concerned
(D) The service provided by the Banking Ombudsman is free

Ans:(C) The order passed by the Banking Ombudsman are final and binding on the parties concerned

 
Q72. Consider the following statements. The function of commercial banks in India includes
1. Purchase and sale of shares and securities on behalf of customers.
2. Acting as executors and trustees of wills.
Which of the statement(s) given above is/are correct?    [UPSC (Pre) 2010]

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Ans:(B) Only 2

 
Q73. Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?    [UPSC (Pre) 2010]

(A) Cash Credit Ratio
(B) Debt Service Obligation
(C) Liquidity Adjustment Facility
(D) Statutory Liquidity Ratio

Ans:(D) Statutory Liquidity Ratio

 
Q74. Consider the following actions which the government can take
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIIS. Which of the above action/actions
can help in reducing the current accounts deficit?     [UPSC (Pre) 2011]

(A) 1 and 2
(B) 2 and 3
(C) Only 3
(D) 1 and 3

Ans:(D) 1 and 3

 
Q75. Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of government securities from the public by the Central Banks.
2. Deposit of currency in commercial banks by the public.
3. Borrowing by the government from the Central Bank.
4. Sale of government Securities to the public by the Central Bank.
Select the correct answer using the codes given below.    [UPSC (Pre) 2012]

(A) 1, 2, 3 and 4
(B) 2 and 4
(C) 1 and 3
(D) 1, 2 and 3

Ans:(C) 1 and 3

 
Q76. The basic aim of Lead Bank Scheme is that    [UPSC (Pre) 2012]

(A) big banks should try to open offices in each district
(B) there should be stiff competition among the various nationalised banks
(C) individual banks should adopt particular districts for intensive development
(D) all the banks should make intensive efforts to mobile deposits

Ans:(C) individual banks should adopt particular districts for intensive development

 
Q77. Consider the following liquid assets.
1. Demand deposits with the banks
2. Time deposits with banks
3. Savings deposits with banks
4. Currency
The correct sequence of these assets in the decreasing order of liquidity is 
[UPSC (Pre) 2013]

(A) 1, 4, 3, 2
(B) 4, 3, 2, 1
(C) 2, 3, 1, 4
(D) 4, 1, 3, 2

Ans:(D) 4, 1, 3, 2

 
Q78. In the context of Indian economy, ‘Open Market Operations’ refers to
[UPPCS (Pre) 2010 UPSC (Pre) 2013]

(A) borrowing by scheduled banks from the RBI
(B) lending by commercial banks to industry and trade
(C) purchases and sale of government securities by the RBI
(D) None of the above

Ans:(C) purchases and sale of government securities by the RBI

 
Q79. Priority Sector lending by banks in India constitutes the lending to   [UPSC (Pre) 2013]

(A) Agriculture
(B) Micro and small enterprises
(C) Weaker sections
(D) All of the above

Ans:(D) All of the above

 
Q80. 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.   [UPSC (Pre) 2013]

(A) 1 and 2
(B) Only 2
(C) 1 and 3
(D) All of these

Ans:(C) 1 and 3

    2      3      4          6          8    
 
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Read More Sections of Indian Economy Objective Questions

Each section contains maximum 80 Questions. To practice more questions visit other sections.
 
 Indian Economy Objective Questions – Section-1
 
 Indian Economy Objective Questions – Section-2
 
 Indian Economy Objective Questions – Section-3
 
 Indian Economy Objective Questions – Section-4
 
 Indian Economy Objective Questions – Section-5
 
 Indian Economy Objective Questions – Section-6

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