Wednesday, February 26, 2020

WBCS Polity and Constitution MCQs Prelims and Mains

Indian Economy MCQ For UPSC | SSC | Rail NTPC | RRB | State PSC P41

Page 41

201. Bank rate is the rate at which
(A) a bank lends to the public.
(B) RBI lends to the public.
(C) The government of India lends money to other countries.
(D) RBI lends to commercial banks.

Correct Answer: [D] RBI lends to commercial banks..
202. The main argument in favor of small-scale and cottage industries in India is that
(A) cost of production is low.
(B) it requires a small capital investment.
(C) they advance the goal of equitable distribution of wealth.
(D) they generate a large volume of employment

Correct Answer: [D] they generate a large volume of employment.
203. Which of the following statements regarding Regional Rural Banks (RRB) in India is correct?
i) The basic income setting up by the RRBs is to develop rural economy.
ii) It covers a specific region as it covers only one or a few districts.
iii) RRBs are sponsored by Commercial Banks. Select the answer.
(A) (i) only
(B) (i) and (ii) only
(C) (ii) and (iii) only
(D) (i), (ii), (iii)

Correct Answer: [B] (i) and (ii) only.
204. The liabilities of commercial bank are
(i) time deposits
(ii) security holdings
(iii) demand deposits
(iv) advances from central bank
(A) (i), (ii), (iii)
(B) (i), (iii), (iv)
(C) (ii) and (iii)
(D) (iii) and (i)

Correct Answer: [B] (i), (iii), (iv).
205. What is the main function of EXIM bank?
(A) to help RBI in the regulation of foreign exchange.
(B) to prevent the unlicensed transaction.
(C) to promote exports and curtail imports.
(D) to conserve foreign exchange

Correct Answer: [C] to promote exports and curtail imports..


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