Table of Contents
Budget 2022: LIC IPO Expected Shortly, Says Nirmala Sitharaman as Disinvestment Target Looms
So today 1st February 2022 is the day of budget 2022-2023 today our union budget 2022 finance minister nirmala sitharaman will be announced about budget 2022
The key takeaways from the fourth Budget of the second Narendra Modi government tabled by Finance Minister Nirmala Sitharaman in the Parliament on Feb 1, 2022. This interactive page is live updating and you can use the filters to have a clearer view of the different important announcements made in Budget 2022. You can also see which products and services would be cheaper after the Budget and what is expected to be costlier.
So guys, isn’t your mind comes to know about the budget 2022, don’t be scared if you guys don’t know about it we 2ill make it simple right now.
Keep reading for budget 2022 here we’ll give you the live updates about budget 2022.
Financial Quiz Questions With Answers
1. Which of the following makes a financial institution a bank?
a) Accepting borrowings
b) Lending
c) Accepting demand deposits
d) Accepting time deposits
Ans:- c
2. Creation of money by commercial banks refers to
a) Creation of bank deposits
b) Issuing currency
c) Both a) and b)
d) Neither a) nor b)
Ans – a
3. How much money are banks able to create is determined by
a) Initial deposits
b) SLR
c) CRR
d) All of these
Ans – d
4. The Value of Money Multiplier equal
a) 1/SLR
b) 1/CRR
c) 1/(SLR + CRR)
d) None of these
Ans – c
a) Rise
b) Fall
c) May rise or may fall
d) No effect
Ans – b
a) Negative
b) Positive
c) Can be negative or can be positive
d) No effect
Ans – b
a) Rise
b) Fall
c) May rise or may fall
d) No effect
Ans – b
8.With lowering margin requirements by the Central bank, the borrowing capacity of the borrowers
a) Rises
b) Falls
c) May rise or may fall
d) No effect
Ans:- a
9. What items are not included in the Money supply measure?
a) Currency and coins with the public
b) inter-bank deposits
c) Other deposits with RBI
d) Net demand deposits with banks
Ans – b
10. High powered Money consists of
a) Currency and coins held by the public
b) Currency, cash reserves with banks, and demand deposits
c) Currency held by the public and cash reserves with banks
d) Currency and demand deposits
Ans – c
a) Total volume of money held by the public at a particular point in time
b) Total volume of money held by the public over a period of time
c) Total volume of money held by the government
d) Both a) and b)
Ans – a
12. Money Supply is a______concept
a) Stock
b) Flow
c) Both a) and b
d) Neither a) nor b)
Ans – a
13. Which one of these is a limitation of the barter exchange?
a) lack of double coincidence of wants
b) lack of store of value
c) lack of a common measure of value
d) All of these
Ans – d
14. Who regulates the money supply in India?
a) Government of India
b) Reserve Bank of India
c) Commercial Banks
d) Planning Commission
Ans – b
15. Which of the following is not a problem with the barter system of exchange?
a) Store of value
b) Double Coincidence of wants
c) Unit of Account
d) Unemployment
Ans – d
a) All deposits in Banks
b) Only Demand deposits in Banks
c) Only Time Deposits in Banks
d) Currency with the Banks
Ans – b
17. Supply of money refers to the quantity of money
a) As on 31st March
b) During any specified period of time
c) As on any point of time
d) During a fiscal year
Ans – c
18. ______is the main source of money supply in an economy
a) Central Bank
b) Commercial Banks
c) Both a) and b)
d) Government
Ans – c
19. This bank operates in the public interest without any profit motive
a) Reserve bank of India
b) State bank of India
c) Canara Bank
d) Allahabad Bank
Ans – a
a) Advancing loans
b) Money creation
c) Accepting Deposits
d) None of these
Ans – b
21. What will be the effect of an increase in the ‘Repo Rate on the Money Supply?
a) Money supply will increase
b) Money supply will decrease
c) Money supply will remain the same
d) Money supply will initially increase and then it will decrease
Ans – b
a) Out of nothing
b) on the basis of their securities
c) on the basis of their total assets
d) on the basis of deposits
Ans – d
23. Which of the following will increase the money supply?
a) Fall in repo rate
b) Purchase of securities in the open market
c) Decrease in, the cash reserve ratio
d) All of these
Ans:- d
24. In order to reduce credit in the country, RBI may
a) Buy securities in the open market
b) Sell securities in the open market
c) Reduce cash reserve ratio
d) Reduce Repo Rate
Ans – b
25. The one rupee note and coins are issued by
a) RBI (Central Bank)
b) Commercial Bank
c) Ministry of finance
d) Central Government
Ans – c
26. Which of these is not the function of the central bank?
a) Accepting deposits of general public
b) Custodian of foreign exchange reserve
c) Banker’s Bank
d) Currency Authority
Ans – a
27. Other name of legal reserve requirement is
a) Cash reserve ratio
b) Statutory liquidity ratio
c) required reserve ratio
d) Bank rate
Ans – c
28. Which of the following is not the function of the central Bank
a) Banking facilities to government
b) Banking facilities to the public
c) Lending to the government
d) Lending to commercial banks
Ans – b
29. Which bank controls the banking and monetary structure of India?
a) Reserve bank of India
b) State Bank of India
c) World Bank
d) Axis Bank
Ans – a
30. Which institution performs the activity of credit creation
a) Commercial Banks
b) Central bank
c) Both a) and b)
d) Neither a) nor b)
Ans – a
1. Which bank controls the banking and monetary structure of India?
a) Reserve bank of India
b) State Bank of India
c) World Bank
d) Axis Bank
Ans – a
2. Which institution performs the activity of credit creation
a) Commercial Banks
b) Central bank
c) Both a) and b)
d) Neither a) nor b)
Ans – a
3. Which of these conditions is needed for a financial institution to become a bank?
a) Accepting deposits
b) Advancing loans
c) Both a) and b)
d) Neither a) nor b)
Ans – c
4. Reverse Repo Rate is the rate at which Central Bank
a) Lends Money to Commercial Banks for short term
b) Lends Money to Commercial Banks for long term
c) Accepts deposits from the commercial Banks
d) None of these
Ans – c
a) Saving Account deposits and fixed deposits
b) Saving Account deposits and current account deposits
c) Current account deposits and fixed deposits
d) All types of deposits
Ans – b
6. What is the defect of the barter system?
(A) Lack of double coincidence of wants
(B) Difficulty in the measurement of value
(C) Difficulty in store of value
(D) All of these
Answer: (D)
7. Which of the following is the credit money?
(A) Cheque and draft
(B) Promissory note
(C) Exchange note
(D) All of these
Answer: D
8. In order to encourage investment in the economy, the Central Bank may ____
(A) Reduce Cash Reserve Ratio
(B) Increase Cash Reserve Ratio
(C) Sell Government securities in the open market
(D) Increase Bank Rate
Answer: (A) Reduce Cash Reserve Ratio
9. What are the alternative measures of money supply in India?
(A) M1
(B) M2
(C) M3 and M4
(D) All of these
Answer: (D) All of these
10. When was the minimum reserve system started in India?
(A) 1947
(B) 1948
(C) 1951
(D) 1957
Answer: (D) 1957
11. High Powered Money includes
(A) C + DD + OD
(B) C + R + OD
(C) C + R + TD
(D) C + DD + TD
Answer: (B) C + R + OD
12. Who has the right of note issue?
(A) Central Bank
(B) Commercial Bank
(C) Government
(D) Co-operative Bank
Answer: (A) Central Bank
13. What are the advantages of the Barter System?
(a) Simple System
(b) More Mutual Cooperation
(c) No Economic Disparities
(d) All the above
Answer: (d) All the above
14. Money is what money does.” Who said it?
(a) Hartley Withers
(b) Hawtrey
(c) Thomas
(d) Keynes
Answer: (a) Hartley Withers
15. Money is a pivot around which the whole economy clusters.” Who said it?
(a) Keynes
(b) Robertson
(c) Marshall
(d) Hawtrey
Answer: (c) Marshall
16. The functions of money include
(a) Value determination
(b) Store of value
(c) Means of exchange
(d) All of these
Answer: (d) All of these
17. Which of the following is not a function of money?
(a) Medium of exchange
(b) Price stability
(c) Store of value
(d) Unit of account
Answer: (b) Price stability
18. Which is the Agency Function of Commercial Banks?
(a) Advancing Loans
(b) Accepting Deposits
(c) Act as Trustee
(d) Locker Facility
Answer: (c) Act as Trustee
(a) 1/CRR
(b) cash×1 CRR
(c) Cash x CRR
(d) None of these
Answer: (a) 1/CRR
20. Credit money is increased when CRR
(a) Falls
(b) Rises
(c) Both (a) and (b)
(d) None of these
Answer: (a) Falls
(a) Any Time Money
(b) All Time Money
(c) Automated Teller Machine
(d) Both (a) and (b)
Answer: (c) Automated Teller Machine
22. The main function of a commercial bank is
(a) Credit control
(b) Loaning to other banks
(c) Accept deposits from customers
(d) All the above
Answer: (c) Accept deposits from customers
23. What is the Central Bank of India?
(a) Commercial Bank
(b) Central Bank
(c) Private Bank
(d) None of these
Answer: (a) Commercial Bank
24. Which type of currency is issued by the Central Bank?
(a) Currency
(b) Credit Money
(c) Coins
(d) All of these
Answer: (a) Currency
25. Which is the major objective of credit control?
(a) To maintain Price Stability
(b) To stabilize Exchange Rate
(c) To production and Employment
(d) All the above
Answer: (b) To stabilize Exchange Rate
26. Which is not a quantitative method of credit control?
(a) Bank Rate
(b) Moral Suasion
(c) Open Market Operations
(d) Change in CRR
Answer: (b) Moral Suasion
27. Reserve Bank of India was established in
(a) 1947
(b) 1935
(c) 1937
(d) 1945
Answer: (b) 1935
28. Banking Sector Reforms in India began in
(a) 1969
(b) 1981
(c) 1991
(d) 2001
Answer: (c) 1991
29. 14 big scheduled commercial banks in India were nationalised in
(a) 1949
(b) 1955
(c) 1969
(d) 2000
Answer: (c) 1969
(a) Medium of exchange
(b) Measure of value
(c) Store of value
(d) All of the above
Answer: (a) Medium of exchange