GK Questions and Answer, GK Quiz
1: Which among the following is the primary role of NABARD?
- To provide term loans to State Cooperative Banks.
- To assist State Governments for share capital contribution.
- To act as refinance institution.
- All of the above.
2: An Open Market Operation (OMO) is an activity by a Central Bank that involves
- increase or decrease of discount rate
- raising or lowering of marginal requirements
- sale and purchase of government securities
- changing the reserve ratio up and down
3: 14 major commercial banks in India were nationalized in 1969, with a deposit base not less than
- Rs. 200 crores
- Rs. 125 crores
- Rs. 100 crores
- Rs. 50 crores
4: Devaluation of currency helps to promote which among the following options?
- imports at lower cost
- national income
5: What does the term 'Legal Tender Money' refer to?
- Bills of exchange
- Currency notes
6: The first bank to be established in India was
- Imperial Bank of India
- Bank of Hindustan
- General Bank of India
- Bank of Calcutta
7: 'Monetary Policy' refers to the credit control measures adopted by the
- Commercial Banks
- Central Bank
8: In 1969, how many Banks were nationalized in India?
9: The Reserve Bank of India issues currency notes under which of the following systems?
- Fixed fiduciary system
- Maximum fiduciary system
- Minimum reserve system
- Proportional reserve system
10: Which of the following methods can be applied by the government to contain inflation?
- surplus budget
- increase in taxation
- reduction in public expenditure
- All the above
11: In which year was the Reserve Bank of India established?
12: Which among the following is the primary objective of the Unit Trust of India?
- To assist the industries in financial difficulties.
- To diffuse the benefit of development among the masses.
- To accumulate funds for public investment expenditure.
- To promote the investment habit among those who have not been able to diversify investment risk.
13: Among the following choices, which one is not an asset held by commercial banks in India?
- Bills of exchange
- Current account deposits
- Credit balances with the Reserve Bank
- Money lent at short notice
14: Which of the following mints undertakes refining of gold for licensed gold dealers and production of medals for defence services, besides producing currency coins for India?
- The Hyderabad Mint
- The Bombay (Mumbai) Mint
- The Calcutta (Kolkata) Mint
- The Noida Mint
15: In which year was the decimal system of currency introduced in India?
16: To fill the gap between expenditure and revenue, deficit financing creates additional paper currency. Even though economic development is the aim of this method, yet if it fails, it generates
17: How will credit creation be affected, if the Central Bank lowers the cash-reserve ratio?
- No change
- None of these
18: Which among the following is the correct definition of the term 'Bank Rate'?
- It is the interest rate charged by Scheduled Banks.
- It is the official rate of interest charged by the Central Bank of a country.
- It is the rate of profit of the Banking Institutions.
- It is the interest rate charged by money lenders.
19: Among the following economic factors, which one contributes to an inflationary trend in an economy?
- 15% fall in production of industrial goods
- 15% increase in prices of agricultural products
- 15% increase in supply of money in the market
- None of these
20: Commercial Banking System in India can be classified into which of the following types of banking?
- Mixed Banking
- Unit Banking
- Branch Banking
- None of the Above