Tag: money

Questions Related to money

Which of the following services/products of banks is specially designed and launched to help students?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Personal loan

  2. Corporate loan

  3. Business loan

  4. Education loan

Show answer
Correct Option: D

The working group set up by the RBI has suggested the launch of an Emergency Fund Facility Scheme for banks. This scheme will help which of the following types of banks?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Public Sector Banks

  2. Small Banks

  3. Urban Cooperative Banks

  4. Private Banks

Show answer
Correct Option: C

Which of the following is part of the process of money laundering?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Placement of funds

  2. Layering of funds

  3. Integration of funds

  4. All of a), b) and c)

Show answer
Correct Option: D

Which of the following is not the part of the scheduled banking structure in India?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Money lenders

  2. Public sector nanks

  3. Private sector banks

  4. Regional rural banks

Show answer
Correct Option: A

Bank issues a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfilment of its terms and conditions. What is this arrangement known in banking context?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Line of Credit

  2. Loan to Client

  3. Letter of Credit

  4. Loan against Credit

Show answer
Correct Option: C

Bad advances of a Bank are called _____________.

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. bad debt

  2. book debt

  3. non-performing assets

  4. out-of-order accounts

Show answer
Correct Option: C

Base Rate is the rate below which no Bank can allow their lending to anyone. Who sets up this 'Base Rate' for Banks?

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. Individual Bank Board

  2. Ministry of Commerce

  3. Ministry of Finance

  4. Reserve Bank of India

Show answer
Correct Option: D

State with reasons the following statement is True or False.
Money is the basis of credit.

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. 

Money serves as the standard of deferred payment. Deferred payments refer to payments made on loans, salaries, pensions, insurance premium, interests, and rents. The necessary condition for deferred or credit payment is that the amount of repaid money should be the same as it was at the time of purchase of the good. Since all the goods and services can be expressed in terms of money, it makes the future payments easy and functional which makes money the basis for credit  transactions in the economy. 

State whether the following statement is True or False.
Credit Money can be refused.

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Money serves as the standard of deferred payment. Deferred payments refer to payments made on loans, salaries, pensions, insurance premium, interests, and rents. The necessary condition for deferred or credit payment is that the amount of repaid money should be the same as it was at the time of purchase of the good. Since all the goods and services can be expressed in terms of money, it makes the future payments easy and functional which makes money the basis for generating credit in the economy. But sometimes credit money can be refused owing to the natural appreciation or depreciation of commodities with time due to which their monetary value at the time of deal does not match with their monetary value at the time of payment. 

The part of income which is not spent on consumption is called _______. 

commercial studies money loans from banks and financial institutions introduction to money - barter system owned fund and borrowed fund

  1. expenditure

  2. saving

  3. investment

  4. public debt

Show answer
Correct Option: B
Explanation:

Savings refers to the part of the income which is not spent on the consumption of goods and services in the economy. It is that portion of the income which is kept aside for an instant and then re-invested into some asset in order to generate more income through these savings.