Money Banking and International Trade Test 6 Mcqs Preparation Online

1. The market for very short term loans is known as?

A. Discount market

B. Stock market

C. Money market

D. Capital market

2. Arrange the following assets of a bank in the ascending order of income (i.e. in the descending order of liquidity): I-Bills; II-Loans; III-In-vestments in Government and other approved securities?

A. II,I,III

B. I,III,II

C. III,II,I

D. I,II,III

3. Since when has the Reserve Bank of India been successfully operating the instrument of selective credit control in this country?

A. 1956

B. 1961

C. 1951

D. 1939

4. Which of the following is not an item on the assets side of the balance sheet of a commercial bank?

A. Advances

B. Money at call and short notice

C. Investments

D. Reserves

5. The main function of legal cash reserve requirements is to?

A. Keep a portion of deposits liquid

B. Influence the demand deposit-creating power of commercial banks

C. Regulate the inter-sect oral flow of money supply

D. Ensure safely of deposits

6. Which of the following is an instrument of quantitative credit control?

A. Variable reserve ratio

B. Credit rationing

C. Prescribing margin requirements

D. Consumer credit regulation

7. The 'terms of trade' refer to?

A. Rates of exchange between two currencies

B. Bilateral trade agreements

C. Comparative advantage of one country over another in the production of a particular commodity

D. Ratio of the index of export prices to the index of import prices.

8. Identify the country, which first employed credit rationing as an instrument of credit control?

A. Germany

B. France

C. USA

D. UK

9. Commercial banks have always to face a conflict between?

A. Central bank and themselves

B. Liquidity and profitability

C. Sharcholders and depositors

D. Demand deposits and time deposits

10. By which year had the gold standard virtually disappeared from the world as an international monetary system?

A. 1936

B. 1939

C. 1945

D. 1933

Money Banking and International Trade Test 6 Mcqs Preparation Online

Leave a Reply Cancel reply