BANK Q AND A -5

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 41.

What do we call the instruments of monetary policy which directly affect the quantity of money supply?

[A] Quantitative instruments
[B] Qualitative instruments
[C] Money instruments
[D] None of the above

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Correct Answer: A [Quantitative instruments]
Notes:
The instruments of monetary policy which directly affect the quantity of money supply are called as Quantitative instruments. Example: Open Market Operations Liquidity Adjustment Facility (Repo and Reverse Repo) etc.

42.Which of these is a quantitative instrument of Monetary Policy?

[A] Repo rate
[B] CRR
[C] SLR
[D] All of the above

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Correct Answer: D [All of the above]
Notes:
The quantitative instruments are: Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR Bank Rate etc.

43.What do we call the funds that the banks keep with RBI as a portion of their Net Demand and Time Liabilities?

[A] Statutory Liquidity Ratio
[B] Cash Reserve Ratio
[C] Bank Rate
[D] Reverse Repo Rate

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Correct Answer: B [Cash Reserve Ratio]
Notes:
The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL).

44.In which year the Paper Currency Act was passed?

[A] 1861
[B] 1885
[C] 1909
[D] 1919

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Correct Answer: A [1861]
Notes:
The Paper Currency Act was passed in 1861. With this the British Government of India was conferred the monopoly to issue paper notes in India.

45.Which of these banks are authorised to act as the agent of RBI?

[A] Bank of Baroda
[B] Punjab National Bank
[C] State Bank of India
[D] All of the above

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Correct Answer: D [All of the above]
Notes:
At present all the public sector banks and some private sector banks are authorised to act as RBI’s agents. These banks can conduct Government Business in India on behalf of RBI.

46.What is the primary aim of enacting the SARFAESI Act?

[A] Recovering Loans
[B] Increasing Deposits
[C] Transparent appointment of Directors
[D] Reducing Corruptions and Scams

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Correct Answer: A [Recovering Loans]
Notes:
The SARFAESI Act allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their non-performing assets to ARCs.

47.What are the advantages of BBPS?

[A] Multiple Payment Modes
[B] Payment of bill anywhere and anytime
[C] Timely & guaranteed settlements between parties
[D] All of the above

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Correct Answer: D [All of the above]
Notes:
Some of the advantages of BBPS are: 1. Multiple Payment Modes 2. Payment of bill anywhere and anytime 3. Timely & guaranteed settlements between parties

48.What is the correct format of a VPA on UPI?

[A] abc/upi
[B] abc@upi
[C] abc-upi
[D] abc*upi

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Correct Answer: B [abc@upi]
Notes:
The VPA or UPI ID (UPI Address) is the key to BHIM UPI fund transfer system. The correct format for VPA is username@upi.

49.To which of the following personalities is the BHIM app dedicated?

[A] Mahatma Gandhi
[B] Dr. B.R Ambedkar
[C] Subhash Chandra Bose
[D] Jawahar Lal Nehru

Hide Answer

Correct Answer: B [Dr. B.R Ambedkar]
Notes:
The BHIM app is dedicated to Dr. Bhim Rao Ambedkar. It was launched by Prime Minister Narendra Modi at the DigiDhan Mela on 30th Dec 2016.

50.Which among the following is considered to be the most liquid asset?

[A] Gold
[B] Money
[C] Land
[D] Treasury bonds

Hide Answer

Correct Answer: B [Money]
Notes:
A liquid asset is cash on hand or an asset that can be readily converted to cash.

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