Banking Quiz

1. Selling of securities in the open market by the central bank creates ______________
a) Deflation
b) Inflation
c) Both inflation and deflation
d) None of these

2. Which of the following is not a tax/duty levied by the Government of India?
a) Service Tax
b) Customs Duty
c) Toll Tax
d) Education Cess

3. What is a fiscal deficit?
a) It is a gap between total expenditure and total receipts of the government
b) It is a gap between total receipts minus external borrowings
c) It is a gap between the values of exports and imports
d) None of these

4. Union budget is always presented first in _______________
a) the Lok Sabha
b) joint session of the Parliament
c) the Rajya Sabha
d) same time at both Lok Sabha and Rajya Sabha

5. Which is the monetary measure to control inflation ?
a) Increase in taxation
b) Hard credit policy
c) Soft credit policy
d) Decrease in taxation

6. Special Drawing Rights are the rights of countries provided by ____________
a) World Bank
b) Reserve Bank of India
c) International Monetary Fund
d) Federal Reserve

7. Which of the following is not included in National Income Accounts?
a) Transfer payments
b) Transaction in stock markets
c) Second hand goods
d) All of the above

8. Which of the following is not a reason for demand pull inflation?
a) Shortage of consumer goods
b) More exports and less imports
c) More exports
d) Economic growth

9. Inflation is caused by _________________
a) decrease in money supply
b) increase in money supply
c) increase in supply of goods
d) increase in cash with the government

10. Which of the following schemes available in the financial markets is not meant for investment purposes?
a) Infrastructure bonds
b) National savings certificates
c) Letter of credit
d) Mutual funds