Money and Banking (Part 4) – Old Year Questions

301. Which of the following is related to the Brent Index?

(a) Crude oil prices
(b) Copper future prices
(c) Gold future prices
(d) Shipping rate index

[U.P. R.O./A.R.O. (Pre) 2021]


302. Which one of the following four countries’ economies has a market cap more than the size of its GDP ?

(a) U.S.A.
(b) India
(c) China
(d) Japan

[U.P.P.C.S. (Mains) 2009]


303. Debenture holders of a company are its :

(a) shareholders
(b) creditors
(c) debtors
(d) directors

[I.A.S. (Pre) 2003]


304. Which one of the following is different from the others from the point of view of ownership?

(a) LIC Policy
(b) Bank Fixed Deposit
(c) Kisan Vikas Patra
(d) Debenture of a Company

[U.P.P.C.S (Pre) 2011]


305. The first Land Development Bank was established in 1920. It was located in :

(a) Meerut
(b) Jhang
(c) Munger
(d) Thane

[U.P. P.C.S (Mains) 2016]


306. Land Development Bank provides loan to farmers for:

(a) Short term
(b) Medium term
(c) Long term
(d) Only for land improvement

[R.A.S./R.T.S.(Pre) 1999]


307. Which of the functions of Land Development Bank is correct?

(a) Providing long term loan to farmers
(b) Providing short term loan to farmers
(c) Providing loans to large industries
(d) Providing loans to small scale industries

[U.P.P.C.S. (Pre) 1992]


308. Which one of the following banks gives Long term loans to Agriculture ?

(a) State Co-operative Bank
(b) Commercial Bank
(c) Primary Credit Society
(d) Land Development Bank

[U.P.P.C.S. (Mains) 2008]


309. Land Development Banks is a part of :

(a) Commercial Banks
(b) IDBI
(c) FCI
(d) Co-operative Credit Structure

[U.P.P.C.S. (Mains) 2008]


310. Central Cooperative Banks work at :

(a) District level
(b) State level
(c) National level
(d) Block level

[U.P.P.C.S. (Mains) 2004]


311. The structure of Cooperative credit societies is :

(a) Single tiered
(b) Double tiered
(c) Three tiered
(d) Four tiered

[R.A.S./R.T.S. (Pre) 1994]


312. Which of the following operates at the district level?

(a) State Cooperative Bank
(b) Central Cooperative Bank
(c) Primary Agricultural Credit Society
(d) The RBI

[U.P.P.C.S. (Spl.) (Mains) 2008]


313. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements :

1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

[I.A.S. (Pre) 2021]


314. As on March 2012, the number of Urban Co-operative Banks in India was :

(a) 65
(b) 164
(c) 1645
(d) 6540

[U.P.P.C.S. (Mains) 2012]


315. Consumer Cooperative Stores are set up by :

(a) by the members
(b) by the registrar of co-operative societies
(c) by the Central Government
(d) by the State Government

[U.P. R.O./A.R.O. (Pre) 2016]


316. Which one of the following is not a source of direct finance?

(b) Regional Rural Bank
(c) State Bank of India
(d) Allahabad Bank
(e) None of the above/More than one of the above

[65th B.P.S.C. (Pre) 2019]


317. During which Plan Period was the National Bank for Agriculture and Rural Development (NABARD) established?

(a) Third Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Eighth Five Year Plan

[47th B.P.S.C. (Pre) 2005]


318. The apex bank for providing agricultural refinance in India is :

(a) RBI
(c) SBI
(d) Imperial Bank
(e) None of the above/More than one of the above

[63rd B.P.S.C. (Pre) 2017]


319. The apex bank for providing agricultural refinance in India is :

(a) RBI
(c) LDB
(d) SBI

[Uttrakhand P.C.S. (Pre) 2016]


320. The ‘National Bank for Agriculture and Rural Development’ was set up in the year :

(a) 1992
(b) 1982
(c) 1962
(d) 1952

[U.P.P.C.S. (Mains) 2003, M.P.P.C.S. (Pre) 2006]


321. NABARD came into existence in the year :

(a) 1979
(b) 1980
(c) 1981
(d) 1982

[U.P. P.C.S. (Mains) 2014]


322. Which of the following is the headquarters of NABARD?

(a) New Delhi
(b) Chennai
(c) Mumbai
(d) Jaipur

[Uttrakhand U.D.A./L.D.A. (mains) 2007]


323. The only organization to cater to all types of credit requirements for agriculture and rural development activities is :

(a) RBI
(c) ARDC

[R.A.S./R.T.S. (Pre) 1994]


324. Consider the following statements with reference to NABARD :

1. NABARD was established in 1982 by the act of Parliament.
2. It provide facility of credit only for the agriculture.

Among these –

(a) Only 1 is correct
(b) Only 2 is correct
(c) 1 and 2 both are correct
(d) Neither 1 nor 2 is correct

[U.P.R.O./A.R.O. (Pre) 2016]


325. NABARD prodives refinance :

(a) For agriculture and rural development
(b) For Export business
(c) For Industrial Development
(d) All the above

[U.P.P.C.S. (Spl.) (Mains) 2004]


326. The Apex Institution to finance agriculture credit in India is :

(a) Reserve Bank of India
(c) Cooperative Societies
(d) Government of India

[U.P.P.C.S. (Pre) 2005]


327. The Apex Institution in the sphere of Agriculture Credit is :

(a) State Bank of India
(b) Reserve Bank of India
(d) Regional Rural Banks

[U.P. Lower Sub. (Spl.) (Pre) 2004]


328. The Apex Bank of agriculture sector is :

(a) Punjab National Bank
(b) State Bank of India
(d) Central Bank of India

[U.P.R.O./A.R.O. (Mains) 2014]


329. In relation to Agricultural Finance and Refinance which institution is the biggest?

(a) Regional Rural Banks
(c) Central Cooperative Bank
(d) Land Development Bank

[U.P.P.C.S. (Mains) 2014]


330. NABARD is related to :

(a) National Institute of Agricultural Development
(b) National Institute of Rural Development
(c) National Bank for Agriculture and Rural Development
(d) National Financial Institution

[M.P.P.C.S. (Pre) 2015]


331. In India, the Bank NABARD does not provide refinance to :

(a) Scheduled Commercial Banks
(b) Regional Rural Banks
(c) Export-Import Bank
(d) State Land Development Bank

[U.P.P.C.S. (Mains) 2002]


332. The nodal agency for implementing the ‘Rural Infrastructure Development Fund Programmes’ is :

(b) State Co-operative Bank
(c) Reserve Bank of India
(d) State Bank of India

[U.P.P.C.S. (Spl.) (Mains) 2008, U.P.P.C.S. (Mains) 2004, 2009]


333. When was the first Regional Rural Bank formed?

(a) 1977
(b) 1976
(c) 1974
(d) 1975

[M.P.P.C.S. (Pre) 2012]


334. In India, regional rural banks were established in the year :

(a) 1969
(b) 1975
(c) 1980
(d) 1982

[U.P.P.C.S. (Mains) 2010]


335. Which one of the following is not the function of Regional Rural Banks ?

(a) To provide credit to small and marginal farmers.
(b) To provide credit to common people in rural areas.
(c) To supplement Scheduled Commercial Banks
(d) To take over the functions of Agricultural Refinance Corporation of India.

[U.P.P.C.S. (Mains) 2005]


336. Which of the following grants/grant direct credit assistance to rural household?

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

[I.A.S. (Pre) 2013]


337. Consider the following events and arrange them in chronological order :

1. Establishment of NABARD
2. Self Help Group Bank Linkage Programme
3. Kisan Credit Card Plan
4. Establishment of Regional Rural Bank

Select the correct answer from the codes given below :
Codes :

(a) 4, 1, 2, 3
(b) 4, 2, 3, 1
(c) 1, 2, 3, 4,
(d) 4, 3, 2, 1

[U.P.P.C.S. (Pre) 2020]


338. The Narasimham Committee for Financial Sector Reforms has suggested reduction in :

(a) SLR and CRR
(b) SLR, CRR and Priority Sector Financing
(c) SLR and Financing to Capital Goods Sector
(d) CRR, Priority Sector Financing and Financing to Capital Goods Sector

[I.A.S. (Pre) 1995]


339. Narasimham Committee was related to :

(a) Higher Education Reforms
(b) Tax Structure Reforms
(c) Banking Structure Reforms
(d) Planning implementation reforms

M.P.P.C.S. (Pre) 1993, U.P. Lower Sub. (Pre) 2008, Uttarakhand P.C.S. (Pre) 2006,


340. Which of the following committees examined and suggested Financial Sector reforms?

(a) Abid Hussain Committee
(b) Bhagwati Committee
(c) Chelliah Committee
(d) Narasimham Committee

[I.A.S. (Pre) 2001]


341. The Committee on Financial Sector Reforms 2008, in India was headed by :

(a) Bimal Jalan
(b) Raghuram Rajan
(c) C. Rangarajan
(d) M. Narasimham

[Uttarakhand P.C.S. (Pre) 2012]


342. On which of the following recommendations, the Microfinance Institutions were set up in 2011?

(a) Malegam Committee
(b) Gaiporia Committee
(c) Rangrajan Committee
(d) Banking Reforms Committee

[U.P.R.O./A.R.O. (Pre) 2014]


343. The Bimal Jalan Panel was set up by Reserve Bank of India to :

(a) Suggest to minimize the Non-Performing Assets
(b) Scrutinize application for new bank licenses
(c) Frame guidelines for financial inclusion
(d) Study use of mobiles in delivering banking services

[U.P.P.C.S. (Pre) 2014]


344. Who was the first Chairman of the ‘Disinvestment Commission’ of India ?

(a) G.V. Ram Krishna
(b) C. Rangarajan
(c) Arun Jaitley
(d) Montek Singh Ahluwalia

[U.P.P.C.S. (Spl.) (Mains) 2004]


345. Rangarajan Committee on disinvestment of shares was appointed by the Government of India in :

(a) 1991
(b) 1993
(c) 1999
(d) 2004

[Jharkhand P.C.S. (Pre) 2013]


346. Rangarajan Committee was constituted for?

(a) Disinvestment
(b) Banking reform
(c) Tax reform
(d) Foreign trade

[M.P.P.C.S. (Pre) 2014]


347. Who has been recently made the Chairman of the working group on revision of Wholesale Price Index Series ?

(a) C. Rangarajan
(b) P.R. Panchamukhi
(c) K.C. Pant
(d) Abhijit Sen

[U.P.P.C.S. (Spl.) (Mains) 2004]


348. With reference to ‘Financial Stability and Development Council’, consider the following statements :

1. It is an organ of NITI Aayog.
2. It is headed by Union Finance Minister.
3. It monitors macroprudential supervision of the economy.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

[I.A.S. (Pre) 2016]


349. Recently, a scheme named ‘Swabhimaan’ was launched. It’s main aim is :

(a) To take banks to the doorsteps of the rural poor
(b) To provide skill to rural artisans
(c) To empower rural women
(d) To provide houses to BPL families

[U.P.P.C.S. (Mains) 2010]


350. ‘Swabhimaan Scheme’ launched in India is associated with :

(a) Rural women’s rights
(b) Rural old people care
(c) Rural banking
(d) Rural food security

[U.P.P.C.S.(Pre) 2012]


351. What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

[I.A.S. (Pre) 2014]


352. What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

1. To bring the idle gold lying with Indian households into the economy
2. To promote FDI in the gold and Jewellery sector
3. To Reduce India’s dependence on gold imports

Select the correct answer using the code given below :

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

[I.A.S. (Pre) 2016]


353. Which of the following does not implement the Self Help Groups (SHGs) – Bank Linkage Programme?

(b) Commercial Banks
(c) RRBs
(d) Co-operative Banks

[U.P.P.C.S. (Pre) ( Re-Exam)2015]


354. Which one of the following is covered by the Kisan Credit Card Scheme?

(a) Consumption Credit and Investment Credit
(b) Only Consumption Credit
(c) Only Investment Credit
(d) None of the above

[U.P. U.D.A./L.D.A. (Mains) 2010]


355. Kisan Credit Card (KCC) Scheme for farmers was introduced in :

(a) 1998-1999
(b) 1999-2000
(c) 2000-2001
(d) 2001-2002

[U.P. P.C.S. (Mains) 2014]


356. With reference to the institution of Banking Ombudsman in India, which one of the following statements is not correct?

(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 orders passed by the Banking Ombudsman are final and binding on the parties concerned.
(d) The service provided by the Banking Ombudsman is free of any fee.

[I.A.S. (Pre) 2010]


357. Which is a credit rating agency in India?

(b) CARE
(c) ICRA
(d) All of the above

[U.P.P.C.S. (Mains) 2008]


358. Under which of the following circumstances may ‘capital gains’ arise?

1. When there is an increase in the sales of a product.
2. When there is a natural increase in the value of the property owned.
3. When you purchase a painting and there is a growth in its value due to increase in its popularity.

Select the correct answer using the code given below :

(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3

[I.A.S. (Pre) 2012]


359. The Phillips Curve represents relationship between :

(a) Deflation and Unemployemt
(b) Inflation and Unemployment
(c) Inflation and Disguised Unemployment
(d) Deflation and Cyclical Unemployment

[Uttarakhand P.C.S. (Pre) 2012]


360. ‘Smart Money’ is a term used for :

(a) Internet Banking
(b) Credit Card
(c) Savings Account in the Bank
(d) Current Account in the Bank

[U.P. Lower Sub. (Pre) 2008]


361. What is called ‘Plastic Money’?

(a) Paper currency
(b) Credit card
(c) Discount coupon
(d) Share

[Uttarakhand U.D.A./L.D.A. (Pre) 2007]


362. The term ‘plastic money’ applies to :

(a) Bank draft made of plastic coated paper
(b) Currency notes printed on plastic coated paper
(c) Currency notes impregnated with plastic thread
(d) Credit cards mainly issued by the banks

[U.P.P.C.S. (Mains) 2006]


363. Which one of the following is not a prepaid payment instrument?

(a) Delhi Metro Rail Card
(b) Electronic Wallet
(c) Credit Card of a Nationalized Bank
(d) Airtel Money

[U.P. P.C.S. (Mains) 2014]


364. For the existence of a market which is indispensable?

(a) Banks
(b) Economic Laws
(c) Prices
(d) Trade Unions

[M.P.P.C.S. (Pre) 1997]


365. The market is an economic tendency, which leads to which of the following trends?

(a) Individualism
(b) Consumerism
(c) Holism
(d) Capitalism

[U.P. Lower Sub. (Pre) 2013]


366. The buyer’s market is known where :

(a) supply is more than the supply
(b) demand is more than the supply
(c) demand is equal to the supply
(d) None of the above

[U.P.P.C.S. (Mains) 2010]


367. Which type of market is suitable for vegetable crops?

(a) Short-term
(b) Very short term
(c) Long term
(d) Very long term

[U.P. Lower Sub. (Pre) 2013]


368. The supply-side economics lays greater emphasis on the point of view of :

(a) producer
(b) global economy
(c) consumer
(d) middle-man

[I.A.S. (Pre) 1998]


369. When the total product remains constant, the marginal product will be :

(a) Zero
(b) Negative
(c) Positive
(d) Constant

[U.P. Lower Sub. (Pre) 2013]


370. A consumer is said to be in equilibrium, if :

(a) he is able to fulfil his need with a given level of income.
(b) he is able to live in full comforts with a given level of income.
(c) he can fulfil his needs without consumption of certain items.
(d) he is able to locate new sources of income.

[I.A.S. (Pre) 1998]


371. Consider the following statements : Other things remaining unchanged, market demand for a good might increase if :

1. price of its substitute increases
2. price of its complement increases
3. the good is an inferior good and income of the consumers increases
4. its price falls

Which of the above statements are correct?

(a) 1 and 4 only
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 1, 2 and 3

[I.A.S. (Pre) 2021]


372. With fixed demand and increase in supply, the price of the commodity is likely to :

(a) remain constant
(b) increase
(c) decrease
(d) no definite pattern can be predicted

[U.P. P.C.S (Mains) 2016]


373. A rise in the 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

[I.A.S. (Pre) 2013]


374. Supply of money remains 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) a decrease in the rate of interest
(d) an increase in the level of income and employment

[I.A.S. (Pre) 2013]


375. Assertion (A): All businessmen make a profit due to price hikes.
Reason (R): The customer has to curtail his needs due to price-hike.

In the context of the above statements, which of the following is correct :

(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.

[U.P.U.D.A./L.D.A. (Pre) 2002, U.P.P.C.S. (Pre) 2003]


376. Improvement of profit volume ratio can be done by the following :

(a) Increasing selling price
(b) Altering sales mixture
(c) Reducing Variable cost
(d) All of the above

[U.P. R.O./A.R.O. (Mains) 2017]


377. For pricing of public goods, the concept of ‘Shadow Prices’ was given by :

(a) J. Tinbergen
(b) A.K. Sen
(c) P.C. Mahalanobis
(d) R. Nurkse

[U.P. U.D.A./L.D.A. (Spl.) (Pre) 2010]


378. If a commodity is provided free to the public by the Government, then

(a) The opportunity cost is zero.
(b) The opportunity cost is ignored.
(c) The opportunity cost is transferred from the consumers of the product to the tax-paying public.
(d) The opportunity cost is transferred from the consumers of the product to the Government.

[I.A.S. (Pre) 2018]