Economics Money Banking and International Trade Test 5 Mcqs Preparation Online Money Banking and International Trade Test 5 Mcqs Preparation Online 1. Bank rate refer to the interest rate at which?A. Central bank gives loans to commercial banks B. Government loans are floated C. Commercial banks grant loans to their customersD. Commercial banks receive deposits from the public Loading... 2. Which one of the following will reduce the capacity of commercial banks to lend?A. Sales of securities in the open market by the central bank B. Reduction of the required cash reserves ratio C. Reduction in the discount rate D. Purchase of securities by the Central bank in the open market Loading... 3. In which country was the instrument of minimum legal cash reserves ratio for banks first introduced?A. USA B. Germany C. UK D. Japan Loading... 4. In a bimetallic standard?A. Two metals (usually gold and silver) are simultaneously monetized and their monetary values are fixed as legal tender B. All of the aboveC. Both gold and silver coins circulate as unlimited legal tender D. Coinage as well as exports and imports of both the metals are free Loading... 5. Which of the following is not a part of the un-organised Indian money market?A. Chit funds B. Indigenous bankers C. Co-operative credit societies D. Money lenders Loading... 6. If there is a significant decrease in the demand for loans, banks will be forced to?A. Resort to creating credit B. Adjust their protfolios C. Sell securities to the public D. Increase liquidity Loading... 7. One of the following is an instrument of qualitative credit control. Identify it?A. Credit rationing B. Minimum statutory cash reserves ratioC. Open-market operations D. Bank rate Loading... 8. The immediate effect of credit-creation by banks is?A. Increase in real national income B. Rise in prices C. Reduction of povertyD. Increase in money supply Loading... 9. Open market operations refer to the buying and selling of?A. Gold B. Government securitiesC. Commercial billsD. Foreign exchange Loading... 10. Selective credit control devices are used by the central bank of a country to?A. Regulate the volume of aggregate bank credit in the economyB. Regulate credit-creation on the part of some selected banks C. Selectively allocate credit among banksD. Control the flow of aggregate bank credit to different productive activities in the economy Loading... Loading... Related PostsMoney Banking and International Trade Test 1 Mcqs…Money Banking and International Trade Test 2 Mcqs…Money Banking and International Trade Test 3 Mcqs…Money Banking and International Trade Test 4 Mcqs…Money Banking and International Trade Test 6 Mcqs…Money Banking and International Trade Test 7 Mcqs… Continue Reading Previous Money Banking and International Trade Test 4 Mcqs Preparation OnlineNext Money Banking and International Trade Test 6 Mcqs Preparation Online Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ