Indian Economy Questions and Answers Part-21

1. The system of value added taxation is applicable to:
(a) excise duties
(b) income tax
(c) estate duty
(d) taxes on agricultural income

Answer: a

2. In order to be scheduled to the Reserve Bank of India, a bank should have capital and reserve of not less than:
(a) 1 lakh
(b) 5 lakhs
(c) 10 lakhs
(d) 50 Iakhs

Answer: b

3. The number of Banks nationalised since 1969 is :
(a) 8
(b) 12
(c) 14
(d) 20

Answer: d

4. The largest Public Sector Bank in India is:
(a) Central Bank
(b) State Bank of India
(c) Punjab National Bank
(d) Indian Overseas Bank

Answer: b

5. Which of the following is the Banker of the Banks?
(a) IDBI
(b) SBI
(c) RBI
(d) SBI and RBI

Answer: c

6. Which of the following is not true about the Reserve Bank of India?
(a) It regulates the currency and credit system of India
(b) It maintains the exchange value of the rupee
(c) Foreign exchange reserves are kept by RBI
(d) One rupee notes and coins are issued by RBI

Answer: d

7. When was the Reserve Bank of India taken over by the Government?
(a) 1945
(b) 1948
(c) 19S2
(d) 1956

Answer: b

8. Who is responsible for the collection and publication of monetary and financial information?
(a) Finance Commission
(b) Finance Ministry
(c) Reserve Bank of India
(d) Auditor and Comptroller General of India

Answer: c

9. The Reserve Bank of India issues:
(a) all the currency notes
(b) all the currency notes except the one rupee note
(c) all the currency notes except the hundred rupee note
(d) only notes of Rs. 10 and above

Answer: b

10. Nationalisation of banks was done with the purpose of:
(a) financing the industries
(b) improving credit facilities
(c) consolidating the economy
(d) improving security of deposits

Answer: c