Money and Banking MCQs – 300 Solved Questions with Answers & Explanations [Global Exam Prep]

Money & Banking 

Money & Banking 300 MCQ Mega‑Set — a comprehensive collection of solved multiple‑choice questions designed for students, aspirants, and professionals preparing for competitive exams and global finance modules.  

This set covers every critical dimension of Money & Banking:

- Evolution and functions of money  

- Types of money: fiat, commodity, crypto, CBDCs  

- Banking systems: central, commercial, shadow, cooperative  

- Central banks: RBI, Fed, ECB, IMF, BIS  

- Monetary policy tools and transmission mechanisms  

- Money supply measures (M0–M4, global variants)  

- Credit creation and liquidity management  

- Digital banking, fintech, and financial innovations  

- International banking and global institutions  

- Banking regulations and financial stability  

- Inflation, interest rates, and exchange mechanisms  

- Money market vs capital market instruments  

Each question is paired with answers and explanations, ensuring clarity, accuracy, and exam‑style authenticity.  

Whether you’re preparing for UPSC, IBPS, GMAT, SAT, CFA, or global university exams, this mega‑set provides complete coverage, modular deployment, and SEO‑optimized content for maximum reach.  

Dive in, practice systematically, and strengthen your command over one of the most vital pillars of economics and finance.

Q1. Which of the following is the primary function of money?  

✅ A) Medium of exchange  

B) Store of goods  

C) Source of credit only  

D) Tool for barter  

Explanation: Money facilitates exchange, replacing barter.

Q2. Which of the following is a secondary function of money?  

✅ A) Store of value  

B) Medium of exchange  

C) Legal tender  

D) Commodity  

Explanation: Money stores value for future use.

Q3. Which of the following is true about money as a unit of account?  

✅ A) Provides a common measure for value  

B) Eliminates value completely  

C) Reduces GDP only  

D) Unit is irrelevant  

Explanation: Money standardizes value measurement.

Q4. Which of the following is true about money as a store of value?  

✅ A) Preserves purchasing power over time  

B) Eliminates value completely  

C) Reduces GDP only  

D) Store is irrelevant  

Explanation: Money stores purchasing power.

Q5. Which of the following is true about money as a standard of deferred payment?  

✅ A) Enables contracts and credit transactions  

B) Eliminates contracts completely  

C) Reduces GDP only  

D) Deferred payment is irrelevant  

Explanation: Money allows deferred payments.

Q6. Which of the following is true about commodity money?  

✅ A) Money with intrinsic value like gold/silver  

B) Money without value  

C) Eliminates barter completely  

D) Commodity is irrelevant  

Explanation: Commodity money has intrinsic value.

Q7. Which of the following is true about fiat money?  

✅ A) Value based on government decree, not intrinsic worth  

B) Value based on commodity  

C) Eliminates money completely  

D) Fiat is irrelevant  

Explanation: Fiat money derives value from legal authority.

Q8. Which of the following is true about representative money?  

✅ A) Backed by commodity reserves like gold  

B) Value based on decree only  

C) Eliminates reserves completely  

D) Representative is irrelevant  

Explanation: Representative money is backed by reserves.

Q9. Which of the following is true about electronic money?  

✅ A) Digital form of currency used in transactions  

B) Eliminates currency completely  

C) Reduces GDP only  

D) Electronic is irrelevant  

Explanation: E‑money is digital currency.

Q10. Which of the following is true about cryptocurrency?  

✅ A) Digital currency using blockchain technology  

B) Eliminates digital economy completely  

C) Reduces GDP only  

D) Crypto is irrelevant  

Explanation: Cryptocurrency uses blockchain.

Q11. Which of the following is true about legal tender?  

✅ A) Money recognized by law for transactions  

B) Eliminates law completely  

C) Reduces GDP only  

D) Tender is irrelevant  

Explanation: Legal tender is state‑recognized money.

Q12. Which of the following is true about near money?  

✅ A) Assets easily convertible into cash  

B) Assets with no value  

C) Eliminates liquidity completely  

D) Near money is irrelevant  

Explanation: Near money includes savings deposits.

Q13. Which of the following is true about money supply M1?  

✅ A) Currency + demand deposits + other liquid assets  

B) Currency only  

C) Eliminates deposits completely  

D) M1 is irrelevant  

Explanation: M1 is narrow money supply.

Q14. Which of the following is true about money supply M2?  

✅ A) M1 + savings deposits + small time deposits  

B) Currency only  

C) Eliminates deposits completely  

D) M2 is irrelevant  

Explanation: M2 is broader than M1.

Q15. Which of the following is true about money supply M3?  

✅ A) M2 + large time deposits + institutional money  

B) Currency only  

C) Eliminates deposits completely  

D) M3 is irrelevant  

Explanation: M3 is broader than M2.

Q16. Which of the following is true about money supply M4?  

✅ A) M3 + all deposits including post office savings  

B) Currency only  

C) Eliminates deposits completely  

D) M4 is irrelevant  

Explanation: M4 is the broadest measure.

Q17. Which of the following is true about liquidity of money?  

✅ A) Refers to ease of converting assets into cash  

B) Eliminates cash completely  

C) Reduces GDP only  

D) Liquidity is irrelevant  

Explanation: Liquidity measures convertibility.

Q18. Which of the following is true about Gresham’s Law?  

✅ A) Bad money drives out good money  

B) Good money drives out bad money  

C) Eliminates money completely  

D) Law is irrelevant  

Explanation: Gresham’s Law explains circulation of inferior currency.

Q19. Which of the following is true about functions of central bank in money supply?  

✅ A) Controls issuance and regulation of currency  

B) Eliminates currency completely  

C) Reduces GDP only  

D) Central bank is irrelevant  

Explanation: Central bank regulates money supply.

Q20. Which of the following is true about demand for money?  

✅ A) Depends on transactions, precautionary, and speculative motives  

B) Eliminates demand completely  

C) Reduces GDP only  

D) Demand is irrelevant  

Explanation: Keynes identified three motives for money demand.

Q21. Which of the following is true about Fisher’s equation of exchange?  

✅ A) MV = PT relates money supply to price level  

B) Eliminates money completely  

C) Reduces GDP only  

D) Equation is irrelevant  

Explanation: Fisher’s equation links money supply and transactions.

Q22. Which of the following is true about Cambridge approach to money demand?  

✅ A) Emphasizes holding money as a proportion of income  

B) Eliminates money completely  

C) Reduces GDP only  

D) Approach is irrelevant  

Explanation: Cambridge approach focuses on income proportion.

Q23. Which of the following is true about liquidity preference theory?  

✅ A) Keynesian theory explaining demand for money  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) Theory is irrelevant  

Explanation: Liquidity preference explains money demand.

Q24. Which of the following is true about functions of money in modern economy?  

✅ A) Facilitates trade, investment, and growth  

B) Eliminates economy completely  

C) Reduces GDP only  

D) Functions are irrelevant  

Explanation: Money supports modern economic activity.

Q25. Which of the following is true about evolution of money?  

✅ A) Progressed from barter → commodity → fiat → digital  

B) Eliminated barter completely without progression  

C) Reduced GDP only  

D) Evolution is irrelevant  

Explanation: Money evolved through stages to digital forms.

Q26. Which of the following is true about commodity money?  

✅ A) Has intrinsic value like gold or silver  

B) Has no value at all  

C) Eliminates barter completely  

D) Commodity is irrelevant  

Explanation: Commodity money derives value from the material itself.

Q27. Which of the following is true about fiat money?  

✅ A) Value based on government decree, not intrinsic worth  

B) Value based on commodity reserves  

C) Eliminates money completely  

D) Fiat is irrelevant  

Explanation: Fiat money is legal tender by authority.

Q28. Which of the following is true about representative money?  

✅ A) Backed by commodity reserves such as gold  

B) Value based only on decree  

C) Eliminates reserves completely  

D) Representative is irrelevant  

Explanation: Representative money is linked to reserves.

Q29. Which of the following is true about fiduciary money?  

✅ A) Accepted on trust without intrinsic value  

B) Backed by gold reserves  

C) Eliminates trust completely  

D) Fiduciary is irrelevant  

Explanation: Fiduciary money relies on public trust.

Q30. Which of the following is true about electronic money?  

✅ A) Digital form of currency used in transactions  

B) Eliminates currency completely  

C) Reduces GDP only  

D) Electronic is irrelevant  

Explanation: E‑money is digital currency.

Q31. Which of the following is true about cryptocurrency?  

✅ A) Digital currency secured by blockchain technology  

B) Eliminates digital economy completely  

C) Reduces GDP only  

D) Crypto is irrelevant  

Explanation: Cryptocurrency uses blockchain for security.

Q32. Which of the following is true about Bitcoin?  

✅ A) First decentralized cryptocurrency launched in 2009  

B) Government‑issued fiat currency  

C) Eliminates crypto completely  

D) Bitcoin is irrelevant  

Explanation: Bitcoin pioneered decentralized crypto.

Q33. Which of the following is true about stablecoins?  

✅ A) Cryptocurrencies pegged to stable assets like USD  

B) Cryptocurrencies with no backing  

C) Eliminates crypto completely  

D) Stablecoins are irrelevant  

Explanation: Stablecoins maintain value stability.

Q34. Which of the following is true about central bank digital currency (CBDC)?  

✅ A) Digital currency issued by central banks  

B) Private cryptocurrency only  

C) Eliminates fiat completely  

D) CBDC is irrelevant  

Explanation: CBDCs are official digital currencies.

Q35. Which of the following is true about near money?  

✅ A) Assets easily convertible into cash like deposits  

B) Assets with no value  

C) Eliminates liquidity completely  

D) Near money is irrelevant  

Explanation: Near money includes savings deposits.

Q36. Which of the following is true about token money?  

✅ A) Face value exceeds intrinsic value  

B) Intrinsic value exceeds face value  

C) Eliminates money completely  

D) Token is irrelevant  

Explanation: Token money has low intrinsic value.

Q37. Which of the following is true about plastic money?  

✅ A) Refers to credit/debit cards used in transactions  

B) Refers to fiat notes only  

C) Eliminates banking completely  

D) Plastic is irrelevant  

Explanation: Plastic money includes cards.

Q38. Which of the following is true about fiduciary issue of currency?  

✅ A) Currency issued against government securities  

B) Currency issued against gold only  

C) Eliminates securities completely  

D) Issue is irrelevant  

Explanation: Fiduciary issue is backed by securities.

Q39. Which of the following is true about full‑bodied money?  

✅ A) Intrinsic value equals face value  

B) Intrinsic value less than face value  

C) Eliminates value completely  

D) Full‑bodied is irrelevant  

Explanation: Full‑bodied money equals intrinsic and face value.

Q40. Which of the following is true about token coins?  

✅ A) Intrinsic value less than face value  

B) Intrinsic value equals face value  

C) Eliminates coins completely  

D) Token coins are irrelevant  

Explanation: Token coins have low intrinsic value.

Q41. Which of the following is true about paper money?  

✅ A) Currency notes issued by authority  

B) Commodity money only  

C) Eliminates fiat completely  

D) Paper is irrelevant  

Explanation: Paper money is fiat currency.

Q42. Which of the following is true about metallic money?  

✅ A) Coins made of metals like gold, silver, copper  

B) Paper notes only  

C) Eliminates metals completely  

D) Metallic is irrelevant  

Explanation: Metallic money uses metals.

Q43. Which of the following is true about hybrid money?  

✅ A) Combines features of fiat and digital currency  

B) Eliminates currency completely  

C) Reduces GDP only  

D) Hybrid is irrelevant  

Explanation: Hybrid money blends fiat and digital.

Q44. Which of the following is true about credit money?  

✅ A) Created through lending and deposits in banks  

B) Commodity money only  

C) Eliminates credit completely  

D) Credit is irrelevant  

Explanation: Credit money arises from banking operations.

Q45. Which of the following is true about fiduciary trust in money?  

✅ A) Public confidence ensures acceptance of currency  

B) Eliminates trust completely  

C) Reduces GDP only  

D) Trust is irrelevant  

Explanation: Trust underpins money acceptance.

Q46. Which of the following is true about digital wallets?  

✅ A) Store and manage electronic money for transactions  

B) Eliminate currency completely  

C) Reduce GDP only  

D) Wallets are irrelevant  

Explanation: Digital wallets manage e‑money.

Q47. Which of the following is true about mobile money?  

✅ A) Transactions conducted via mobile platforms  

B) Eliminates mobile completely  

C) Reduces GDP only  

D) Mobile money is irrelevant  

Explanation: Mobile money enables digital payments.

Q48. Which of the following is true about smart cards in banking?  

✅ A) Cards with embedded chips for secure transactions  

B) Paper notes only  

C) Eliminates banking completely  

D) Smart cards are irrelevant  

Explanation: Smart cards enhance security.

Q49. Which of the following is true about fiduciary currency issue limits?  

✅ A) Determined by government and central bank authority  

B) Eliminates limits completely  

C) Reduces GDP only  

D) Limits are irrelevant  

Explanation: Fiduciary issue is regulated by law.

Q50. Which of the following is true about modern money evolution?  

✅ A) Transitioned from commodity → fiat → digital → crypto  

B) Eliminated barter without progression  

C) Reduced GDP only  

D) Evolution is irrelevant  

Explanation: Modern money evolved through multiple stages.

Q51. Which of the following is true about central banks?  

✅ A) Regulate currency, credit, and monetary policy  

B) Operate only as commercial lenders  

C) Eliminate banking completely  

D) Central banks are irrelevant  

Explanation: Central banks control currency and policy.

Q52. Which of the following is true about commercial banks?  

✅ A) Accept deposits and provide loans to the public  

B) Issue currency directly  

C) Eliminate deposits completely  

D) Commercial banks are irrelevant  

Explanation: Commercial banks serve the public.

Q53. Which of the following is true about shadow banking?  

✅ A) Non‑bank financial intermediaries performing bank‑like functions  

B) Central banks only  

C) Eliminate finance completely  

D) Shadow banking is irrelevant  

Explanation: Shadow banking operates outside traditional banks.

Q54. Which of the following is true about cooperative banks?  

✅ A) Provide credit to agriculture and rural sectors  

B) Operate only as central banks  

C) Eliminate rural credit completely  

D) Cooperative banks are irrelevant  

Explanation: Cooperative banks support rural credit.

Q55. Which of the following is true about development banks?  

✅ A) Provide long‑term finance for industrial and infrastructure projects  

B) Operate only as commercial banks  

C) Eliminate development completely  

D) Development banks are irrelevant  

Explanation: Development banks fund long‑term projects.

Q56. Which of the following is true about investment banks?  

✅ A) Specialize in raising capital and securities trading  

B) Operate only as deposit banks  

C) Eliminate investment completely  

D) Investment banks are irrelevant  

Explanation: Investment banks handle capital markets.

Q57. Which of the following is true about retail banking?  

✅ A) Provides services directly to individuals  

B) Provides services only to governments  

C) Eliminates individuals completely  

D) Retail banking is irrelevant  

Explanation: Retail banking serves individuals.

Q58. Which of the following is true about wholesale banking?  

✅ A) Provides services to corporations and institutions  

B) Provides services only to individuals  

C) Eliminates corporations completely  

D) Wholesale banking is irrelevant  

Explanation: Wholesale banking serves institutions.

Q59. Which of the following is true about universal banking?  

✅ A) Offers a wide range of financial services under one roof  

B) Offers only deposits  

C) Eliminates services completely  

D) Universal banking is irrelevant  

Explanation: Universal banks provide multiple services.

Q60. Which of the following is true about merchant banks?  

✅ A) Specialize in international trade and corporate finance  

B) Operate only as deposit banks  

C) Eliminate trade completely  

D) Merchant banks are irrelevant  

Explanation: Merchant banks focus on trade finance.

Q61. Which of the following is true about Islamic banking?  

✅ A) Operates on Sharia principles, avoiding interest  

B) Operates only on interest‑based lending  

C) Eliminates religion completely  

D) Islamic banking is irrelevant  

Explanation: Islamic banking avoids interest.

Q62. Which of the following is true about microfinance institutions?  

✅ A) Provide small loans to low‑income groups  

B) Provide only large corporate loans  

C) Eliminate small borrowers completely  

D) Microfinance is irrelevant  

Explanation: Microfinance supports low‑income borrowers.

Q63. Which of the following is true about central bank independence?  

✅ A) Ensures monetary policy free from political influence  

B) Eliminates independence completely  

C) Reduces GDP only  

D) Independence is irrelevant  

Explanation: Independence strengthens credibility.

Q64. Which of the following is true about reserve requirements?  

✅ A) Central banks mandate minimum reserves for commercial banks  

B) Eliminates reserves completely  

C) Reduces GDP only  

D) Requirements are irrelevant  

Explanation: Reserve requirements ensure stability.

Q65. Which of the following is true about lender of last resort?  

✅ A) Central bank provides emergency liquidity to banks  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) Lender is irrelevant  

Explanation: Central banks act as lender of last resort.

Q66. Which of the following is true about monetary authority?  

✅ A) Central bank regulates money supply and interest rates  

B) Eliminates authority completely  

C) Reduces GDP only  

D) Authority is irrelevant  

Explanation: Monetary authority controls money supply.

Q67. Which of the following is true about commercial bank credit creation?  

✅ A) Banks create money through lending and deposits  

B) Eliminate deposits completely  

C) Reduce GDP only  

D) Credit creation is irrelevant  

Explanation: Banks expand money supply via lending.

Q68. Which of the following is true about shadow banking risks?  

✅ A) Lack of regulation increases systemic risk  

B) Eliminates risk completely  

C) Reduces GDP only  

D) Risks are irrelevant  

Explanation: Shadow banking poses systemic risks.

Q69. Which of the following is true about cooperative credit societies?  

✅ A) Provide credit to members based on mutual cooperation  

B) Eliminate cooperation completely  

C) Reduce GDP only  

D) Societies are irrelevant  

Explanation: Cooperative societies support members.

Q70. Which of the following is true about central bank monetary tools?  

✅ A) Include repo rate, CRR, and open market operations  

B) Eliminate tools completely  

C) Reduce GDP only  

D) Tools are irrelevant  

Explanation: Central banks use monetary tools.

Q71. Which of the following is true about commercial bank profitability?  

✅ A) Depends on interest spreads and service charges  

B) Eliminates profits completely  

C) Reduces GDP only  

D) Profitability is irrelevant  

Explanation: Profitability comes from spreads and fees.

Q72. Which of the following is true about shadow banking benefits?  

✅ A) Provides alternative credit channels  

B) Eliminates credit completely  

C) Reduces GDP only  

D) Benefits are irrelevant  

Explanation: Shadow banking expands credit access.

Q73. Which of the following is true about central bank currency issuance?  

✅ A) Sole authority to issue legal tender notes  

B) Shared with commercial banks  

C) Eliminates notes completely  

D) Issuance is irrelevant  

Explanation: Central banks issue currency.

Q74. Which of the following is true about commercial bank regulation?  

✅ A) Ensures stability, solvency, and consumer protection  

B) Eliminates regulation completely  

C) Reduces GDP only  

D) Regulation is irrelevant  

Explanation: Regulation ensures stability.

Q75. Which of the following is true about banking system diversity?  

✅ A) Includes central, commercial, cooperative, shadow, and development banks  

B) Includes only central banks  

C) Eliminates diversity completely  

D) Diversity is irrelevant  

Explanation: Banking systems are diverse globally.

Q76. Which of the following is true about the Reserve Bank of India (RBI)?  

✅ A) Regulates currency, credit, and monetary policy in India  

B) Issues currency only without regulation  

C) Eliminates banking completely  

D) RBI is irrelevant  

Explanation: RBI is India’s central bank.

Q77. Which of the following is true about the Federal Reserve (Fed)?  

✅ A) Central bank of the United States regulating monetary policy  

B) Issues currency only without regulation  

C) Eliminates banking completely  

D) Fed is irrelevant  

Explanation: Fed controls US monetary policy.

Q78. Which of the following is true about the European Central Bank (ECB)?  

✅ A) Manages monetary policy for the Eurozone  

B) Issues currency only without regulation  

C) Eliminates Europe completely  

D) ECB is irrelevant  

Explanation: ECB governs Eurozone monetary policy.

Q79. Which of the following is true about the Bank of England?  

✅ A) Central bank of the UK, issuing pound sterling  

B) Issues currency only without regulation  

C) Eliminates UK banking completely  

D) Bank of England is irrelevant  

Explanation: Bank of England regulates UK currency.

Q80. Which of the following is true about the Bank for International Settlements (BIS)?  

✅ A) Acts as a bank for central banks globally  

B) Operates only as a commercial bank  

C) Eliminates central banks completely  

D) BIS is irrelevant  

Explanation: BIS supports cooperation among central banks.

Q81. Which of the following is true about the International Monetary Fund (IMF)?  

✅ A) Provides financial assistance and monitors global economy  

B) Issues currency only  

C) Eliminates global economy completely  

D) IMF is irrelevant  

Explanation: IMF supports global financial stability.

Q82. Which of the following is true about World Bank?  

✅ A) Provides loans for development projects worldwide  

B) Issues currency only  

C) Eliminates development completely  

D) World Bank is irrelevant  

Explanation: World Bank funds development.

Q83. Which of the following is true about central bank independence?  

✅ A) Ensures monetary policy free from political influence  

B) Eliminates independence completely  

C) Reduces GDP only  

D) Independence is irrelevant  

Explanation: Independence strengthens credibility.

Q84. Which of the following is true about open market operations?  

✅ A) Central bank buys/sells securities to regulate liquidity  

B) Eliminates securities completely  

C) Reduces GDP only  

D) Operations are irrelevant  

Explanation: OMOs regulate liquidity.

Q85. Which of the following is true about repo rate?  

✅ A) Rate at which central bank lends to commercial banks  

B) Rate at which banks lend to customers  

C) Eliminates lending completely  

D) Repo is irrelevant  

Explanation: Repo rate influences liquidity.

Q86. Which of the following is true about reverse repo rate?  

✅ A) Rate at which central bank borrows from commercial banks  

B) Rate at which banks lend to customers  

C) Eliminates borrowing completely  

D) Reverse repo is irrelevant  

Explanation: Reverse repo absorbs liquidity.

Q87. Which of the following is true about cash reserve ratio (CRR)?  

✅ A) Percentage of deposits banks must keep with central bank  

B) Percentage of deposits lent to customers  

C) Eliminates reserves completely  

D) CRR is irrelevant  

Explanation: CRR ensures liquidity control.

Q88. Which of the following is true about statutory liquidity ratio (SLR)?  

✅ A) Percentage of deposits banks must invest in approved securities  

B) Percentage of deposits lent to customers  

C) Eliminates securities completely  

D) SLR is irrelevant  

Explanation: SLR maintains financial discipline.

Q89. Which of the following is true about quantitative easing (QE)?  

✅ A) Central bank purchases assets to inject liquidity  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) QE is irrelevant  

Explanation: QE increases money supply.

Q90. Which of the following is true about IMF conditionality?  

✅ A) Loans tied to policy reforms in borrowing countries  

B) Loans without conditions  

C) Eliminates reforms completely  

D) Conditionality is irrelevant  

Explanation: IMF loans require reforms.

Q91. Which of the following is true about World Bank’s IBRD?  

✅ A) Provides loans to middle‑income countries  

B) Provides loans only to low‑income countries  

C) Eliminates loans completely  

D) IBRD is irrelevant  

Explanation: IBRD supports middle‑income nations.

Q92. Which of the following is true about World Bank’s IDA?  

✅ A) Provides concessional loans to low‑income countries  

B) Provides loans only to middle‑income countries  

C) Eliminates loans completely  

D) IDA is irrelevant  

Explanation: IDA supports low‑income nations.

Q93. Which of the following is true about BIS role in global finance?  

✅ A) Promotes cooperation among central banks and financial stability  

B) Eliminates cooperation completely  

C) Reduces GDP only  

D) BIS is irrelevant  

Explanation: BIS fosters global stability.

Q94. Which of the following is true about IMF quotas?  

✅ A) Determine financial contribution and voting power of members  

B) Eliminate voting completely  

C) Reduce GDP only  

D) Quotas are irrelevant  

Explanation: Quotas define IMF membership rights.

Q95. Which of the following is true about IMF Special Drawing Rights (SDRs)?  

✅ A) International reserve asset created by IMF  

B) National currency only  

C) Eliminates reserves completely  

D) SDRs are irrelevant  

Explanation: SDRs supplement global reserves.

Q96. Which of the following is true about ECB monetary tools?  

✅ A) Include interest rates, asset purchases, and liquidity operations  

B) Eliminate tools completely  

C) Reduce GDP only  

D) Tools are irrelevant  

Explanation: ECB uses multiple tools.

Q97. Which of the following is true about Fed’s dual mandate?  

✅ A) Promote maximum employment and stable prices  

B) Eliminate employment completely  

C) Reduce GDP only  

D) Mandate is irrelevant  

Explanation: Fed balances employment and inflation.

Q98. Which of the following is true about RBI monetary policy committee (MPC)?  

✅ A) Decides repo rate and monetary stance in India  

B) Eliminates committee completely  

C) Reduces GDP only  

D) MPC is irrelevant  

Explanation: MPC sets India’s monetary policy.

Q99. Which of the following is true about IMF surveillance?  

✅ A) Monitors global economy and member policies  

B) Eliminates monitoring completely  

C) Reduces GDP only  

D) Surveillance is irrelevant  

Explanation: IMF surveillance ensures stability.

Q100. Which of the following is true about central bank credibility?  

✅ A) Essential for effective monetary policy and public trust  

B) Eliminates credibility completely  

C) Reduces GDP only  

D) Credibility is irrelevant  

Explanation: Credibility ensures policy effectiveness.

Q101. Which of the following is true about monetary policy?  

✅ A) Central bank uses tools to control money supply and interest rates  

B) Eliminates money completely  

C) Reduces GDP only  

D) Policy is irrelevant  

Explanation: Monetary policy regulates money and credit.

Q102. Which of the following is true about expansionary monetary policy?  

✅ A) Increases money supply to stimulate growth  

B) Reduces money supply to curb inflation  

C) Eliminates growth completely  

D) Expansionary is irrelevant  

Explanation: Expansionary policy boosts growth.

Q103. Which of the following is true about contractionary monetary policy?  

✅ A) Reduces money supply to control inflation  

B) Increases money supply to boost growth  

C) Eliminates inflation completely  

D) Contractionary is irrelevant  

Explanation: Contractionary policy curbs inflation.

Q104. Which of the following is true about repo rate changes?  

✅ A) Higher repo rate reduces borrowing and liquidity  

B) Higher repo rate increases borrowing  

C) Eliminates liquidity completely  

D) Repo is irrelevant  

Explanation: Repo rate influences liquidity.

Q105. Which of the following is true about reverse repo rate changes?  

✅ A) Higher reverse repo rate absorbs liquidity from banks  

B) Higher reverse repo rate increases liquidity  

C) Eliminates liquidity completely  

D) Reverse repo is irrelevant  

Explanation: Reverse repo absorbs liquidity.

Q106. Which of the following is true about cash reserve ratio (CRR)?  

✅ A) Higher CRR reduces lending capacity of banks  

B) Higher CRR increases lending capacity  

C) Eliminates reserves completely  

D) CRR is irrelevant  

Explanation: CRR affects lending capacity.

Q107. Which of the following is true about statutory liquidity ratio (SLR)?  

✅ A) Higher SLR reduces funds available for lending  

B) Higher SLR increases lending capacity  

C) Eliminates securities completely  

D) SLR is irrelevant  

Explanation: SLR affects lending capacity.

Q108. Which of the following is true about open market operations (OMO)?  

✅ A) Central bank buys/sells securities to regulate liquidity  

B) Eliminates securities completely  

C) Reduces GDP only  

D) OMO is irrelevant  

Explanation: OMOs regulate liquidity.

Q109. Which of the following is true about quantitative easing (QE)?  

✅ A) Central bank purchases assets to inject liquidity  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) QE is irrelevant  

Explanation: QE increases money supply.

Q110. Which of the following is true about transmission mechanism of monetary policy?  

✅ A) Policy changes affect interest rates, investment, and output  

B) Eliminates transmission completely  

C) Reduces GDP only  

D) Mechanism is irrelevant  

Explanation: Transmission links policy to economy.

Q111. Which of the following is true about inflation targeting?  

✅ A) Central bank sets explicit inflation targets  

B) Eliminates inflation completely  

C) Reduces GDP only  

D) Targeting is irrelevant  

Explanation: Inflation targeting guides policy.

Q112. Which of the following is true about interest rate channel?  

✅ A) Policy changes affect borrowing costs and investment  

B) Eliminates interest completely  

C) Reduces GDP only  

D) Channel is irrelevant  

Explanation: Interest rate channel transmits policy.

Q113. Which of the following is true about credit channel?  

✅ A) Policy changes affect availability of loans and credit  

B) Eliminates credit completely  

C) Reduces GDP only  

D) Channel is irrelevant  

Explanation: Credit channel transmits policy.

Q114. Which of the following is true about exchange rate channel?  

✅ A) Policy changes affect currency value and trade flows  

B) Eliminates exchange completely  

C) Reduces GDP only  

D) Channel is irrelevant  

Explanation: Exchange rate channel transmits policy.

Q115. Which of the following is true about asset price channel?  

✅ A) Policy changes affect stock and housing prices  

B) Eliminates assets completely  

C) Reduces GDP only  

D) Channel is irrelevant  

Explanation: Asset price channel transmits policy.

Q116. Which of the following is true about expectations channel?  

✅ A) Policy credibility influences public expectations  

B) Eliminates expectations completely  

C) Reduces GDP only  

D) Channel is irrelevant  

Explanation: Expectations channel affects behavior.

Q117. Which of the following is true about time lag in monetary policy?  

✅ A) Policy effects take time to influence economy  

B) Policy effects are immediate  

C) Eliminates lag completely  

D) Lag is irrelevant  

Explanation: Monetary policy has time lags.

Q118. Which of the following is true about fiscal vs monetary policy?  

✅ A) Fiscal policy uses government spending, monetary uses money supply  

B) Both use only spending  

C) Eliminates policy completely  

D) Comparison is irrelevant  

Explanation: Fiscal and monetary differ in tools.

Q119. Which of the following is true about neutral monetary policy?  

✅ A) Neither expansionary nor contractionary, maintains stability  

B) Eliminates neutrality completely  

C) Reduces GDP only  

D) Neutrality is irrelevant  

Explanation: Neutral policy maintains balance.

Q120. Which of the following is true about accommodative monetary policy?  

✅ A) Supports growth by keeping interest rates low  

B) Eliminates growth completely  

C) Reduces GDP only  

D) Accommodative is irrelevant  

Explanation: Accommodative policy boosts growth.

Q121. Which of the following is true about restrictive monetary policy?  

✅ A) Controls inflation by raising interest rates  

B) Eliminates inflation completely  

C) Reduces GDP only  

D) Restrictive is irrelevant  

Explanation: Restrictive policy curbs inflation.

Q122. Which of the following is true about liquidity adjustment facility (LAF)?  

✅ A) RBI uses repo and reverse repo to manage liquidity  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) LAF is irrelevant  

Explanation: LAF manages liquidity.

Q123. Which of the following is true about marginal standing facility (MSF)?  

✅ A) RBI lends to banks at higher rate during emergencies  

B) Eliminates lending completely  

C) Reduces GDP only  

D) MSF is irrelevant  

Explanation: MSF provides emergency liquidity.

Q124. Which of the following is true about monetary transmission in developing economies?  

✅ A) Often weaker due to structural issues in markets  

B) Always strong and immediate  

C) Eliminates transmission completely  

D) Developing economies are irrelevant  

Explanation: Transmission is weaker in developing economies.

Q125. Which of the following is true about credibility of monetary policy?  

✅ A) Public trust enhances effectiveness of policy  

B) Eliminates credibility completely  

C) Reduces GDP only  

D) Credibility is irrelevant  

Explanation: Credibility ensures policy success.

Q126. Which of the following is true about M1 money supply?  

✅ A) Includes currency in circulation + demand deposits  

B) Includes only currency notes  

C) Eliminates deposits completely  

D) M1 is irrelevant  

Explanation: M1 is narrow money supply.

Q127. Which of the following is true about M2 money supply?  

✅ A) M1 + savings deposits + small time deposits  

B) Currency only  

C) Eliminates deposits completely  

D) M2 is irrelevant  

Explanation: M2 is broader than M1.

Q128. Which of the following is true about M3 money supply?  

✅ A) M2 + large time deposits + institutional money  

B) Currency only  

C) Eliminates deposits completely  

D) M3 is irrelevant  

Explanation: M3 is broader than M2.

Q129. Which of the following is true about M4 money supply?  

✅ A) M3 + all deposits including post office savings  

B) Currency only  

C) Eliminates deposits completely  

D) M4 is irrelevant  

Explanation: M4 is the broadest measure in India.

Q130. Which of the following is true about narrow money?  

✅ A) Refers to highly liquid forms like currency and demand deposits  

B) Refers to long‑term bonds only  

C) Eliminates liquidity completely  

D) Narrow money is irrelevant  

Explanation: Narrow money is liquid.

Q131. Which of the following is true about broad money?  

✅ A) Includes currency + deposits + near money assets  

B) Includes currency only  

C) Eliminates deposits completely  

D) Broad money is irrelevant  

Explanation: Broad money includes wider assets.

Q132. Which of the following is true about high‑powered money?  

✅ A) Currency issued by central bank + reserves of banks  

B) Currency only  

C) Eliminates reserves completely  

D) High‑powered money is irrelevant  

Explanation: High‑powered money is base money.

Q133. Which of the following is true about money multiplier?  

✅ A) Ratio of broad money to high‑powered money  

B) Ratio of currency to deposits only  

C) Eliminates multiplier completely  

D) Multiplier is irrelevant  

Explanation: Money multiplier shows expansion.

Q134. Which of the following is true about velocity of money?  

✅ A) Average number of times money is used in transactions  

B) Eliminates transactions completely  

C) Reduces GDP only  

D) Velocity is irrelevant  

Explanation: Velocity measures circulation speed.

Q135. Which of the following is true about Fisher’s equation of exchange?  

✅ A) MV = PT links money supply to price level  

B) Eliminates money completely  

C) Reduces GDP only  

D) Equation is irrelevant  

Explanation: Fisher’s equation relates money and prices.

Q136. Which of the following is true about Cambridge cash‑balance approach?  

✅ A) Money demand is a proportion of income held as cash  

B) Eliminates cash completely  

C) Reduces GDP only  

D) Approach is irrelevant  

Explanation: Cambridge approach emphasizes cash balances.

Q137. Which of the following is true about Keynesian liquidity preference?  

✅ A) Money demand arises from transaction, precautionary, and speculative motives  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) Theory is irrelevant  

Explanation: Keynes explained motives for money demand.

Q138. Which of the following is true about monetarist view of money supply?  

✅ A) Money supply growth directly influences inflation  

B) Eliminates inflation completely  

C) Reduces GDP only  

D) Monetarist view is irrelevant  

Explanation: Monetarists link money supply to inflation.

Q139. Which of the following is true about RBI’s measure of M0?  

✅ A) Refers to reserve money (currency + deposits with RBI)  

B) Refers to M1 only  

C) Eliminates reserves completely  

D) M0 is irrelevant  

Explanation: M0 is reserve money.

Q140. Which of the following is true about US Federal Reserve’s M1?  

✅ A) Currency + demand deposits + traveler’s checks  

B) Currency only  

C) Eliminates deposits completely  

D) M1 is irrelevant  

Explanation: US M1 includes liquid assets.

Q141. Which of the following is true about US Federal Reserve’s M2?  

✅ A) M1 + savings deposits + small time deposits + money market funds  

B) Currency only  

C) Eliminates deposits completely  

D) M2 is irrelevant  

Explanation: US M2 is broader than M1.

Q142. Which of the following is true about Eurozone’s M3?  

✅ A) Includes currency, deposits, and market instruments  

B) Currency only  

C) Eliminates deposits completely  

D) M3 is irrelevant  

Explanation: Eurozone M3 is broad money.

Q143. Which of the following is true about Japan’s money supply measures?  

✅ A) Includes M1, M2, M3, and L (liquidity aggregate)  

B) Includes currency only  

C) Eliminates deposits completely  

D) Measures are irrelevant  

Explanation: Japan uses multiple aggregates.

Q144. Which of the following is true about China’s M2?  

✅ A) Includes currency + deposits, widely used for policy analysis  

B) Currency only  

C) Eliminates deposits completely  

D) M2 is irrelevant  

Explanation: China’s M2 is key indicator.

Q145. Which of the following is true about broad money in developing economies?  

✅ A) Often includes informal deposits and savings instruments  

B) Includes currency only  

C) Eliminates deposits completely  

D) Broad money is irrelevant  

Explanation: Developing economies broaden definitions.

Q146. Which of the following is true about global money supply comparison?  

✅ A) Definitions vary across countries but serve similar purposes  

B) Definitions are identical globally  

C) Eliminates differences completely  

D) Comparison is irrelevant  

Explanation: Money supply definitions differ globally.

Q147. Which of the following is true about demand deposits in money supply?  

✅ A) Form part of M1 and M2 aggregates  

B) Excluded from all measures  

C) Eliminates deposits completely  

D) Demand deposits are irrelevant  

Explanation: Demand deposits are liquid money.

Q148. Which of the following is true about time deposits in money supply?  

✅ A) Included in M2 and M3 but not M1  

B) Included in M1 only  

C) Eliminates deposits completely  

D) Time deposits are irrelevant  

Explanation: Time deposits are less liquid.

Q149. Which of the following is true about near money in supply measures?  

✅ A) Assets easily convertible into cash included in broad money  

B) Excluded from all measures  

C) Eliminates liquidity completely  

D) Near money is irrelevant  

Explanation: Near money expands broad money.

Q150. Which of the following is true about importance of money supply measures?  

✅ A) Help policymakers assess liquidity and inflation risks  

B) Eliminate policy completely  

C) Reduce GDP only  

D) Measures are irrelevant  

Explanation: Money supply measures guide policy.

Q151. Which of the following is true about credit creation by banks?  

✅ A) Banks expand money supply through lending and deposits  

B) Banks only store currency without lending  

C) Eliminates deposits completely  

D) Credit creation is irrelevant  

Explanation: Lending multiplies deposits, creating credit.

Q152. Which of the following is true about primary deposits?  

✅ A) Deposits made directly by customers in banks  

B) Deposits created through lending  

C) Eliminates deposits completely  

D) Primary deposits are irrelevant  

Explanation: Primary deposits are customer funds.

Q153. Which of the following is true about derivative deposits?  

✅ A) Created when banks lend money and credit accounts  

B) Deposits made directly by customers  

C) Eliminates deposits completely  

D) Derivative deposits are irrelevant  

Explanation: Derivative deposits arise from lending.

Q154. Which of the following is true about credit multiplier?  

✅ A) Ratio of total deposits created to primary deposits  

B) Ratio of reserves to deposits only  

C) Eliminates multiplier completely  

D) Multiplier is irrelevant  

Explanation: Credit multiplier shows expansion capacity.

Q155. Which of the following is true about liquidity management in banks?  

✅ A) Ensures banks can meet withdrawal and lending needs  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) Liquidity management is irrelevant  

Explanation: Liquidity management balances inflows and outflows.

Q156. Which of the following is true about cash reserve ratio (CRR)?  

✅ A) Higher CRR reduces banks’ lending capacity  

B) Higher CRR increases lending capacity  

C) Eliminates reserves completely  

D) CRR is irrelevant  

Explanation: CRR controls liquidity.

Q157. Which of the following is true about statutory liquidity ratio (SLR)?  

✅ A) Banks must invest a portion of deposits in approved securities  

B) Banks can lend all deposits freely  

C) Eliminates securities completely  

D) SLR is irrelevant  

Explanation: SLR ensures financial discipline.

Q158. Which of the following is true about liquidity adjustment facility (LAF)?  

✅ A) RBI uses repo and reverse repo to manage liquidity  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) LAF is irrelevant  

Explanation: LAF balances liquidity in India.

Q159. Which of the following is true about marginal standing facility (MSF)?  

✅ A) RBI lends to banks at higher rate during emergencies  

B) Eliminates lending completely  

C) Reduces GDP only  

D) MSF is irrelevant  

Explanation: MSF provides emergency liquidity.

Q160. Which of the following is true about overdraft facility?  

✅ A) Allows customers to withdraw more than their deposits  

B) Eliminates deposits completely  

C) Reduces GDP only  

D) Overdraft is irrelevant  

Explanation: Overdraft provides short‑term liquidity.

Q161. Which of the following is true about call money market?  

✅ A) Provides very short‑term funds between banks  

B) Provides only long‑term loans  

C) Eliminates funds completely  

D) Call money is irrelevant  

Explanation: Call money market manages short‑term liquidity.

Q162. Which of the following is true about repo transactions?  

✅ A) Banks sell securities with agreement to repurchase  

B) Banks sell securities permanently  

C) Eliminates securities completely  

D) Repo is irrelevant  

Explanation: Repo provides short‑term liquidity.

Q163. Which of the following is true about reverse repo transactions?  

✅ A) Banks buy securities with agreement to resell  

B) Banks buy securities permanently  

C) Eliminates securities completely  

D) Reverse repo is irrelevant  

Explanation: Reverse repo absorbs liquidity.

Q164. Which of the following is true about liquidity risk?  

✅ A) Risk of banks failing to meet short‑term obligations  

B) Risk of long‑term investment only  

C) Eliminates risk completely  

D) Liquidity risk is irrelevant  

Explanation: Liquidity risk affects solvency.

Q165. Which of the following is true about Basel norms on liquidity?  

✅ A) Require banks to maintain liquidity coverage ratios  

B) Eliminate liquidity completely  

C) Reduce GDP only  

D) Basel norms are irrelevant  

Explanation: Basel norms strengthen liquidity management.

Q166. Which of the following is true about credit rationing?  

✅ A) Banks limit loans to certain sectors or borrowers  

B) Banks lend unlimited funds  

C) Eliminates rationing completely  

D) Credit rationing is irrelevant  

Explanation: Credit rationing controls risk.

Q167. Which of the following is true about liquidity preference theory?  

✅ A) Keynes explained demand for money based on liquidity motives  

B) Eliminates liquidity completely  

C) Reduces GDP only  

D) Theory is irrelevant  

Explanation: Liquidity preference explains money demand.

Q168. Which of the following is true about capital adequacy ratio (CAR)?  

✅ A) Ensures banks hold sufficient capital against risk‑weighted assets  

B) Eliminates capital completely  

C) Reduces GDP only  

D) CAR is irrelevant  

Explanation: CAR ensures solvency.

Q169. Which of the following is true about liquidity coverage ratio (LCR)?  

✅ A) Requires banks to hold liquid assets to cover 30‑day stress scenario  

B) Eliminates assets completely  

C) Reduces GDP only  

D) LCR is irrelevant  

Explanation: LCR ensures resilience.

Q170. Which of the following is true about net stable funding ratio (NSFR)?  

✅ A) Requires banks to maintain stable funding over one year horizon  

B) Eliminates funding completely  

C) Reduces GDP only  

D) NSFR is irrelevant  

Explanation: NSFR promotes long‑term stability.

Q171. Which of the following is true about interbank lending?  

✅ A) Banks lend to each other to manage liquidity  

B) Banks lend only to customers  

C) Eliminates lending completely  

D) Interbank lending is irrelevant  

Explanation: Interbank lending balances liquidity.

Q172. Which of the following is true about liquidity trap?  

✅ A) Monetary policy becomes ineffective when interest rates are very low  

B) Eliminates policy completely  

C) Reduces GDP only  

D) Trap is irrelevant  

Explanation: Liquidity trap reduces policy effectiveness.

Q173. Which of the following is true about credit risk management?  

✅ A) Banks assess borrower’s ability to repay loans  

B) Banks lend without assessment  

C) Eliminates risk completely  

D) Risk management is irrelevant  

Explanation: Credit risk management ensures repayment.

Q174. Which of the following is true about liquidity management in central banks?  

✅ A) Central banks use tools like repo, CRR, and OMOs  

B) Eliminate liquidity completely  

C) Reduce GDP only  

D) Management is irrelevant  

Explanation: Central banks manage liquidity system‑wide.

Q175. Which of the following is true about importance of credit creation?  

✅ A) Essential for economic growth and investment  

B) Eliminates growth completely  

C) Reduces GDP only  

D) Credit creation is irrelevant  

Explanation: Credit creation fuels growth.

Q176. Which of the following is true about digital banking?  

✅ A) Provides banking services through online and mobile platforms  

B) Eliminates banking completely  

C) Reduces GDP only  

D) Digital banking is irrelevant  

Explanation: Digital banking delivers services electronically.

Q177. Which of the following is true about mobile banking?  

✅ A) Enables transactions via smartphones and apps  

B) Requires physical branch visits only  

C) Eliminates mobiles completely  

D) Mobile banking is irrelevant  

Explanation: Mobile banking uses apps for convenience.

Q178. Which of the following is true about internet banking?  

✅ A) Allows customers to access accounts via web portals  

B) Requires only ATM use  

C) Eliminates internet completely  

D) Internet banking is irrelevant  

Explanation: Internet banking provides online account access.

Q179. Which of the following is true about fintech?  

✅ A) Combines finance and technology to deliver innovative services  

B) Eliminates finance completely  

C) Reduces GDP only  

D) Fintech is irrelevant  

Explanation: Fintech integrates technology with finance.

Q180. Which of the following is true about peer‑to‑peer (P2P) lending?  

✅ A) Connects borrowers and lenders directly via platforms  

B) Requires only banks  

C) Eliminates lending completely  

D) P2P lending is irrelevant  

Explanation: P2P lending bypasses traditional banks.

Q181. Which of the following is true about digital wallets?  

✅ A) Store and manage electronic money for transactions  

B) Require only cash  

C) Eliminate wallets completely  

D) Digital wallets are irrelevant  

Explanation: Digital wallets manage e‑money.

Q182. Which of the following is true about Unified Payments Interface (UPI)?  

✅ A) Real‑time payment system developed in India  

B) Requires only cash  

C) Eliminates payments completely  

D) UPI is irrelevant  

Explanation: UPI enables instant digital payments.

Q183. Which of the following is true about blockchain in banking?  

✅ A) Provides secure, decentralized transaction records  

B) Eliminates records completely  

C) Reduces GDP only  

D) Blockchain is irrelevant  

Explanation: Blockchain ensures secure transactions.

Q184. Which of the following is true about cryptocurrencies in banking?  

✅ A) Offer decentralized digital currency alternatives  

B) Require only fiat money  

C) Eliminate crypto completely  

D) Cryptocurrencies are irrelevant  

Explanation: Cryptocurrencies provide alternatives to fiat.

Q185. Which of the following is true about central bank digital currency (CBDC)?  

✅ A) Digital currency issued by central banks  

B) Private cryptocurrency only  

C) Eliminates fiat completely  

D) CBDC is irrelevant  

Explanation: CBDCs are official digital currencies.

Q186. Which of the following is true about e‑KYC in digital banking?  

✅ A) Electronic process to verify customer identity  

B) Requires only manual verification  

C) Eliminates identity completely  

D) e‑KYC is irrelevant  

Explanation: e‑KYC simplifies verification.

Q187. Which of the following is true about neobanks?  

✅ A) Operate entirely online without physical branches  

B) Require physical branches only  

C) Eliminate banks completely  

D) Neobanks are irrelevant  

Explanation: Neobanks are digital‑only banks.

Q188. Which of the following is true about robo‑advisors?  

✅ A) Provide automated investment advice using algorithms  

B) Require only human advisors  

C) Eliminate advice completely  

D) Robo‑advisors are irrelevant  

Explanation: Robo‑advisors automate investment guidance.

Q189. Which of the following is true about biometric authentication in banking?  

✅ A) Uses fingerprints or facial recognition for security  

B) Requires only passwords  

C) Eliminates security completely  

D) Biometrics are irrelevant  

Explanation: Biometrics enhance security.

Q190. Which of the following is true about payment gateways?  

✅ A) Facilitate online transactions between merchants and customers  

B) Require only cash payments  

C) Eliminate transactions completely  

D) Gateways are irrelevant  

Explanation: Gateways enable online payments.

Q191. Which of the following is true about digital lending platforms?  

✅ A) Provide loans using online applications and algorithms  

B) Require only physical paperwork  

C) Eliminate lending completely  

D) Platforms are irrelevant  

Explanation: Digital lending simplifies loan access.

Q192. Which of the following is true about cybersecurity in digital banking?  

✅ A) Protects systems and data from fraud and attacks  

B) Eliminates security completely  

C) Reduces GDP only  

D) Cybersecurity is irrelevant  

Explanation: Cybersecurity safeguards digital banking.

Q193. Which of the following is true about QR code payments?  

✅ A) Allow instant transactions by scanning codes  

B) Require only cash  

C) Eliminate payments completely  

D) QR codes are irrelevant  

Explanation: QR codes enable quick payments.

Q194. Which of the following is true about digital remittances?  

✅ A) Enable cross‑border money transfers electronically  

B) Require only physical cash  

C) Eliminate remittances completely  

D) Remittances are irrelevant  

Explanation: Digital remittances simplify transfers.

Q195. Which of the following is true about fintech regulation?  

✅ A) Ensures consumer protection and financial stability  

B) Eliminates regulation completely  

C) Reduces GDP only  

D) Regulation is irrelevant  

Explanation: Regulation balances innovation and safety.

Q196. Which of the following is true about CBDC benefits?  

✅ A) Enhance payment efficiency and reduce transaction costs  

B) Eliminate efficiency completely  

C) Reduce GDP only  

D) Benefits are irrelevant  

Explanation: CBDCs improve efficiency.

Q197. Which of the following is true about CBDC risks?  

✅ A) Include cybersecurity threats and privacy concerns  

B) Eliminate risks completely  

C) Reduce GDP only  

D) Risks are irrelevant  

Explanation: CBDCs face risks like cyberattacks.

Q198. Which of the following is true about fintech innovation hubs?  

✅ A) Promote startups and digital finance solutions  

B) Eliminate innovation completely  

C) Reduce GDP only  

D) Hubs are irrelevant  

Explanation: Hubs foster fintech growth.

Q199. Which of the following is true about digital inclusion?  

✅ A) Ensures access to financial services for all groups  

B) Excludes rural and poor populations  

C) Eliminates inclusion completely  

D) Inclusion is irrelevant  

Explanation: Digital inclusion expands access.

Q200. Which of the following is true about future of digital banking?  

✅ A) Driven by AI, blockchain, and global connectivity  

B) Requires only manual banking  

C) Eliminates future completely  

D) Future is irrelevant  

Explanation: Digital banking evolves with technology.

Q201. Which of the following is true about international banking?  

✅ A) Provides cross‑border financial services and transactions  

B) Operates only within domestic boundaries  

C) Eliminates global finance completely  

D) International banking is irrelevant  

Explanation: International banking connects global economies.

Q202. Which of the following is true about correspondent banking?  

✅ A) Domestic banks partner with foreign banks for services  

B) Banks operate only independently  

C) Eliminates partnerships completely  

D) Correspondent banking is irrelevant  

Explanation: Correspondent banking enables cross‑border services.

Q203. Which of the following is true about offshore banking?  

✅ A) Banking conducted in foreign jurisdictions, often tax‑friendly  

B) Banking only within home country  

C) Eliminates offshore completely  

D) Offshore banking is irrelevant  

Explanation: Offshore banking offers tax and privacy benefits.

Q204. Which of the following is true about Eurodollar deposits?  

✅ A) US dollar deposits held in banks outside the US  

B) Deposits held only in US banks  

C) Eliminates dollars completely  

D) Eurodollar is irrelevant  

Explanation: Eurodollar deposits are offshore USD holdings.

Q205. Which of the following is true about SWIFT system?  

✅ A) Provides secure messaging for international financial transactions  

B) Provides only domestic messaging  

C) Eliminates communication completely  

D) SWIFT is irrelevant  

Explanation: SWIFT enables secure global payments.

Q206. Which of the following is true about IMF role in global finance?  

✅ A) Provides financial assistance and monitors global economy  

B) Issues currency only  

C) Eliminates global economy completely  

D) IMF is irrelevant  

Explanation: IMF supports global stability.

Q207. Which of the following is true about World Bank role?  

✅ A) Provides loans for development projects worldwide  

B) Issues currency only  

C) Eliminates development completely  

D) World Bank is irrelevant  

Explanation: World Bank funds development globally.

Q208. Which of the following is true about BIS role?  

✅ A) Acts as a bank for central banks worldwide  

B) Operates only as a commercial bank  

C) Eliminates central banks completely  

D) BIS is irrelevant  

Explanation: BIS fosters cooperation among central banks.

Q209. Which of the following is true about Asian Development Bank (ADB)?  

✅ A) Provides loans and technical assistance to Asian countries  

B) Provides loans only to Europe  

C) Eliminates Asia completely  

D) ADB is irrelevant  

Explanation: ADB supports Asian development.

Q210. Which of the following is true about BRICS New Development Bank?  

✅ A) Established to fund infrastructure and sustainable projects in BRICS nations  

B) Operates only in Europe  

C) Eliminates BRICS completely  

D) NDB is irrelevant  

Explanation: NDB supports BRICS development.

Q211. Which of the following is true about International Finance Corporation (IFC)?  

✅ A) Provides private sector investment support under World Bank Group  

B) Provides only government loans  

C) Eliminates private sector completely  

D) IFC is irrelevant  

Explanation: IFC promotes private sector growth.

Q212. Which of the following is true about Asian Infrastructure Investment Bank (AIIB)?  

✅ A) Multilateral bank financing infrastructure in Asia and beyond  

B) Operates only in Africa  

C) Eliminates Asia completely  

D) AIIB is irrelevant  

Explanation: AIIB funds infrastructure projects.

Q213. Which of the following is true about WTO’s role in finance?  

✅ A) Facilitates trade rules impacting global financial flows  

B) Provides only currency issuance  

C) Eliminates trade completely  

D) WTO is irrelevant  

Explanation: WTO regulates trade affecting finance.

Q214. Which of the following is true about OECD role in finance?  

✅ A) Promotes policies for economic growth and stability among members  

B) Provides only loans  

C) Eliminates growth completely  

D) OECD is irrelevant  

Explanation: OECD supports policy coordination.

Q215. Which of the following is true about FATF role?  

✅ A) Sets standards to combat money laundering and terrorism financing  

B) Provides only loans  

C) Eliminates standards completely  

D) FATF is irrelevant  

Explanation: FATF combats illicit finance.

Q216. Which of the following is true about Basel Committee on Banking Supervision?  

✅ A) Sets global standards for bank regulation and capital adequacy  

B) Provides only loans  

C) Eliminates regulation completely  

D) Basel Committee is irrelevant  

Explanation: Basel Committee ensures global banking stability.

Q217. Which of the following is true about G20’s role in finance?  

✅ A) Coordinates global economic policies among major economies  

B) Provides only currency issuance  

C) Eliminates cooperation completely  

D) G20 is irrelevant  

Explanation: G20 promotes global coordination.

Q218. Which of the following is true about World Trade Organization dispute settlement?  

✅ A) Resolves trade disputes impacting financial flows  

B) Provides only currency issuance  

C) Eliminates disputes completely  

D) WTO dispute settlement is irrelevant  

Explanation: WTO resolves trade disputes.

Q219. Which of the following is true about IMF Special Drawing Rights (SDRs)?  

✅ A) International reserve asset created by IMF  

B) National currency only  

C) Eliminates reserves completely  

D) SDRs are irrelevant  

Explanation: SDRs supplement global reserves.

Q220. Which of the following is true about World Bank’s IDA?  

✅ A) Provides concessional loans to low‑income countries  

B) Provides loans only to middle‑income countries  

C) Eliminates loans completely  

D) IDA is irrelevant  

Explanation: IDA supports low‑income nations.

Q221. Which of the following is true about World Bank’s IBRD?  

✅ A) Provides loans to middle‑income countries  

B) Provides loans only to low‑income countries  

C) Eliminates loans completely  

D) IBRD is irrelevant  

Explanation: IBRD supports middle‑income nations.

Q222. Which of the following is true about IMF conditionality?  

✅ A) Loans tied to policy reforms in borrowing countries  

B) Loans without conditions  

C) Eliminates reforms completely  

D) Conditionality is irrelevant  

Explanation: IMF loans require reforms.

Q223. Which of the following is true about BIS global meetings?  

✅ A) Facilitate cooperation among central banks worldwide  

B) Provide only domestic meetings  

C) Eliminate cooperation completely  

D) Meetings are irrelevant  

Explanation: BIS meetings promote coordination.

Q224. Which of the following is true about ADB’s focus areas?  

✅ A) Infrastructure, poverty reduction, and regional integration  

B) Only currency issuance  

C) Eliminates Asia completely  

D) Focus is irrelevant  

Explanation: ADB supports development priorities.

Q225. Which of the following is true about AIIB’s global expansion?  

✅ A) Funds projects beyond Asia, including Africa and Europe  

B) Operates only in Asia  

C) Eliminates expansion completely  

D) Expansion is irrelevant  

Explanation: AIIB finances projects globally.

Q226. Which of the following is true about banking regulation?  

✅ A) Ensures stability, solvency, and consumer protection  

B) Eliminates regulation completely  

C) Reduces GDP only  

D) Regulation is irrelevant  

Explanation: Regulation safeguards the banking system.

Q227. Which of the following is true about Basel norms?  

✅ A) Set international standards for capital adequacy and risk management  

B) Apply only to domestic trade rules  

C) Eliminate capital completely  

D) Basel norms are irrelevant  

Explanation: Basel norms strengthen global banking.

Q228. Which of the following is true about Basel I?  

✅ A) Introduced minimum capital adequacy requirements in 1988  

B) Eliminated capital completely  

C) Applied only to domestic banks  

D) Basel I is irrelevant  

Explanation: Basel I set global capital standards.

Q229. Which of the following is true about Basel II?  

✅ A) Focused on credit, market, and operational risk management  

B) Eliminated risk completely  

C) Applied only to capital adequacy  

D) Basel II is irrelevant  

Explanation: Basel II expanded risk coverage.

Q230. Which of the following is true about Basel III?  

✅ A) Strengthened capital, leverage, and liquidity requirements post‑2008 crisis  

B) Eliminated liquidity completely  

C) Reduced GDP only  

D) Basel III is irrelevant  

Explanation: Basel III improved resilience.

Q231. Which of the following is true about capital adequacy ratio (CAR)?  

✅ A) Ensures banks hold sufficient capital against risk‑weighted assets  

B) Eliminates capital completely  

C) Reduces GDP only  

D) CAR is irrelevant  

Explanation: CAR ensures solvency.

Q232. Which of the following is true about Tier 1 capital?  

✅ A) Core capital including equity and reserves  

B) Includes only subordinated debt  

C) Eliminates reserves completely  

D) Tier 1 is irrelevant  

Explanation: Tier 1 capital is core strength.

Q233. Which of the following is true about Tier 2 capital?  

✅ A) Supplementary capital including subordinated debt and provisions  

B) Includes only equity  

C) Eliminates debt completely  

D) Tier 2 is irrelevant  

Explanation: Tier 2 supports Tier 1 capital.

Q234. Which of the following is true about leverage ratio?  

✅ A) Measures capital relative to total assets  

B) Measures deposits only  

C) Eliminates assets completely  

D) Leverage ratio is irrelevant  

Explanation: Leverage ratio prevents excessive risk.

Q235. Which of the following is true about liquidity coverage ratio (LCR)?  

✅ A) Requires banks to hold liquid assets to cover 30‑day stress scenario  

B) Eliminates assets completely  

C) Reduces GDP only  

D) LCR is irrelevant  

Explanation: LCR ensures resilience.

Q236. Which of the following is true about net stable funding ratio (NSFR)?  

✅ A) Requires banks to maintain stable funding over one year horizon  

B) Eliminates funding completely  

C) Reduces GDP only  

D) NSFR is irrelevant  

Explanation: NSFR promotes long‑term stability.

Q237. Which of the following is true about risk‑weighted assets (RWA)?  

✅ A) Assets weighted by risk to calculate capital adequacy  

B) Assets measured only by nominal value  

C) Eliminates risk completely  

D) RWA is irrelevant  

Explanation: RWA determines capital needs.

Q238. Which of the following is true about systemic risk?  

✅ A) Risk of collapse of entire financial system  

B) Risk limited to one borrower only  

C) Eliminates risk completely  

D) Systemic risk is irrelevant  

Explanation: Systemic risk affects whole system.

Q239. Which of the following is true about macroprudential regulation?  

✅ A) Focuses on stability of entire financial system  

B) Focuses only on individual banks  

C) Eliminates regulation completely  

D) Macroprudential is irrelevant  

Explanation: Macroprudential ensures system stability.

Q240. Which of the following is true about microprudential regulation?  

✅ A) Focuses on safety of individual banks  

B) Focuses only on global economy  

C) Eliminates regulation completely  

D) Microprudential is irrelevant  

Explanation: Microprudential protects individual banks.

Q241. Which of the following is true about deposit insurance?  

✅ A) Protects depositors against bank failures  

B) Eliminates deposits completely  

C) Reduces GDP only  

D) Insurance is irrelevant  

Explanation: Deposit insurance safeguards depositors.

Q242. Which of the following is true about moral hazard in banking?  

✅ A) Risk that banks take excessive risks due to safety nets  

B) Eliminates risk completely  

C) Reduces GDP only  

D) Moral hazard is irrelevant  

Explanation: Moral hazard arises from guarantees.

Q243. Which of the following is true about financial stability?  

✅ A) Ensures smooth functioning of financial system without crises  

B) Eliminates stability completely  

C) Reduces GDP only  

D) Stability is irrelevant  

Explanation: Stability prevents systemic crises.

Q244. Which of the following is true about stress testing in banks?  

✅ A) Simulates adverse scenarios to test resilience  

B) Eliminates testing completely  

C) Reduces GDP only  

D) Stress testing is irrelevant  

Explanation: Stress tests assess resilience.

Q245. Which of the following is true about capital buffers?  

✅ A) Extra capital held to absorb shocks  

B) Eliminates buffers completely  

C) Reduces GDP only  

D) Buffers are irrelevant  

Explanation: Buffers strengthen resilience.

Q246. Which of the following is true about countercyclical capital buffer?  

✅ A) Requires banks to hold more capital during booms  

B) Requires less capital during booms  

C) Eliminates buffers completely  

D) Countercyclical buffer is irrelevant  

Explanation: Countercyclical buffer prevents overheating.

Q247. Which of the following is true about prompt corrective action (PCA)?  

✅ A) Framework to monitor and correct weak banks  

B) Eliminates monitoring completely  

C) Reduces GDP only  

D) PCA is irrelevant  

Explanation: PCA ensures corrective measures.

Q248. Which of the following is true about financial inclusion regulation?  

✅ A) Promotes access to banking services for all groups  

B) Excludes rural and poor populations  

C) Eliminates inclusion completely  

D) Inclusion regulation is irrelevant  

Explanation: Regulation expands access.

Q249. Which of the following is true about resolution frameworks for banks?  

✅ A) Provide mechanisms to manage failing banks without systemic collapse  

B) Eliminate frameworks completely  

C) Reduce GDP only  

D) Resolution is irrelevant  

Explanation: Resolution frameworks prevent crises.

Q250. Which of the following is true about global financial stability reports?  

✅ A) Published by IMF to assess risks and trends  

B) Published only by domestic banks  

C) Eliminate reports completely  

D) Reports are irrelevant  

Explanation: IMF reports monitor global stability.

Q251. Which of the following is true about inflation?  

✅ A) Sustained rise in general price levels  

B) Temporary fall in prices only  

C) Eliminates prices completely  

D) Inflation is irrelevant  

Explanation: Inflation reflects persistent price increases.

Q252. Which of the following is true about deflation?  

✅ A) Sustained fall in general price levels  

B) Sustained rise in prices only  

C) Eliminates prices completely  

D) Deflation is irrelevant  

Explanation: Deflation reduces overall prices.

Q253. Which of the following is true about stagflation?  

✅ A) Combination of high inflation and stagnant growth  

B) Combination of low inflation and high growth  

C) Eliminates inflation completely  

D) Stagflation is irrelevant  

Explanation: Stagflation mixes inflation with stagnation.

Q254. Which of the following is true about hyperinflation?  

✅ A) Extremely rapid and excessive rise in prices  

B) Sustained fall in prices only  

C) Eliminates prices completely  

D) Hyperinflation is irrelevant  

Explanation: Hyperinflation destabilizes economies.

Q255. Which of the following is true about demand‑pull inflation?  

✅ A) Caused by excess demand over supply  

B) Caused by cost increases only  

C) Eliminates demand completely  

D) Demand‑pull is irrelevant  

Explanation: Demand‑pull inflation arises from excess demand.

Q256. Which of the following is true about cost‑push inflation?  

✅ A) Caused by rising production costs  

B) Caused by excess demand only  

C) Eliminates costs completely  

D) Cost‑push is irrelevant  

Explanation: Cost‑push inflation arises from higher costs.

Q257. Which of the following is true about inflation targeting?  

✅ A) Central bank sets explicit inflation goals  

B) Eliminates inflation completely  

C) Reduces GDP only  

D) Targeting is irrelevant  

Explanation: Inflation targeting guides policy.

Q258. Which of the following is true about Consumer Price Index (CPI)?  

✅ A) Measures changes in prices of consumer goods and services  

B) Measures only wholesale prices  

C) Eliminates prices completely  

D) CPI is irrelevant  

Explanation: CPI tracks consumer inflation.

Q259. Which of the following is true about Wholesale Price Index (WPI)?  

✅ A) Measures price changes at wholesale level  

B) Measures only consumer prices  

C) Eliminates prices completely  

D) WPI is irrelevant  

Explanation: WPI tracks wholesale inflation.

Q260. Which of the following is true about interest rates?  

✅ A) Cost of borrowing money expressed as percentage  

B) Eliminates borrowing completely  

C) Reduces GDP only  

D) Interest rates are irrelevant  

Explanation: Interest rates reflect borrowing costs.

Q261. Which of the following is true about nominal interest rate?  

✅ A) Stated rate without adjusting for inflation  

B) Adjusted for inflation  

C) Eliminates rates completely  

D) Nominal rate is irrelevant  

Explanation: Nominal rate is unadjusted.

Q262. Which of the following is true about real interest rate?  

✅ A) Nominal rate adjusted for inflation  

B) Nominal rate only  

C) Eliminates inflation completely  

D) Real rate is irrelevant  

Explanation: Real rate reflects true cost of borrowing.

Q263. Which of the following is true about Fisher effect?  

✅ A) Nominal interest rate equals real rate + inflation  

B) Nominal rate equals inflation only  

C) Eliminates rates completely  

D) Fisher effect is irrelevant  

Explanation: Fisher effect links inflation and interest.

Q264. Which of the following is true about exchange rate?  

✅ A) Price of one currency in terms of another  

B) Eliminates currency completely  

C) Reduces GDP only  

D) Exchange rate is irrelevant  

Explanation: Exchange rate measures currency value.

Q265. Which of the following is true about fixed exchange rate system?  

✅ A) Currency value pegged to another currency or gold  

B) Currency value fluctuates freely  

C) Eliminates currency completely  

D) Fixed system is irrelevant  

Explanation: Fixed system pegs currency.

Q266. Which of the following is true about floating exchange rate system?  

✅ A) Currency value determined by market forces  

B) Currency pegged to gold only  

C) Eliminates currency completely  

D) Floating system is irrelevant  

Explanation: Floating system allows free fluctuation.

Q267. Which of the following is true about managed float system?  

✅ A) Currency value influenced by central bank interventions  

B) Currency value fixed permanently  

C) Eliminates interventions completely  

D) Managed float is irrelevant  

Explanation: Managed float combines market and intervention.

Q268. Which of the following is true about purchasing power parity (PPP)?  

✅ A) Exchange rates adjust to equalize price levels across countries  

B) Exchange rates fixed permanently  

C) Eliminates parity completely  

D) PPP is irrelevant  

Explanation: PPP links exchange rates to prices.

Q269. Which of the following is true about balance of payments (BoP)?  

✅ A) Records all economic transactions between residents and rest of world  

B) Records only domestic transactions  

C) Eliminates payments completely  

D) BoP is irrelevant  

Explanation: BoP tracks international transactions.

Q270. Which of the following is true about current account in BoP?  

✅ A) Includes trade in goods, services, income, and transfers  

B) Includes only capital flows  

C) Eliminates trade completely  

D) Current account is irrelevant  

Explanation: Current account records trade and transfers.

Q271. Which of the following is true about capital account in BoP?  

✅ A) Records capital transfers and asset transactions  

B) Records only goods trade  

C) Eliminates capital completely  

D) Capital account is irrelevant  

Explanation: Capital account tracks capital flows.

Q272. Which of the following is true about foreign exchange reserves?  

✅ A) Assets held by central bank in foreign currencies  

B) Assets held only in domestic currency  

C) Eliminates reserves completely  

D) Reserves are irrelevant  

Explanation: Forex reserves support currency stability.

Q273. Which of the following is true about devaluation?  

✅ A) Official lowering of currency value under fixed system  

B) Currency appreciation only  

C) Eliminates currency completely  

D) Devaluation is irrelevant  

Explanation: Devaluation reduces currency value.

Q274. Which of the following is true about depreciation?  

✅ A) Fall in currency value under floating system  

B) Rise in currency value only  

C) Eliminates currency completely  

D) Depreciation is irrelevant  

Explanation: Depreciation occurs in floating systems.

Q275. Which of the following is true about appreciation?  

✅ A) Rise in currency value under floating system  

B) Fall in currency value only  

C) Eliminates currency completely  

D) Appreciation is irrelevant  

Explanation: Appreciation strengthens currency.

Q276. Which of the following is true about money market?  

✅ A) Deals with short‑term funds and instruments  

B) Deals only with long‑term securities  

C) Eliminates funds completely  

D) Money market is irrelevant  

Explanation: Money market provides short‑term liquidity.

Q277. Which of the following is true about capital market?  

✅ A) Deals with long‑term securities like stocks and bonds  

B) Deals only with short‑term funds  

C) Eliminates securities completely  

D) Capital market is irrelevant  

Explanation: Capital market supports long‑term investment.

Q278. Which of the following is true about treasury bills?  

✅ A) Short‑term government securities issued at discount  

B) Long‑term bonds only  

C) Eliminates securities completely  

D) Treasury bills are irrelevant  

Explanation: T‑bills are money market instruments.

Q279. Which of the following is true about commercial paper?  

✅ A) Short‑term unsecured promissory notes issued by companies  

B) Long‑term bonds only  

C) Eliminates notes completely  

D) Commercial paper is irrelevant  

Explanation: Commercial paper provides short‑term corporate funding.

Q280. Which of the following is true about certificates of deposit (CDs)?  

✅ A) Time deposits issued by banks with fixed maturity  

B) Demand deposits only  

C) Eliminates deposits completely  

D) CDs are irrelevant  

Explanation: CDs are negotiable money market instruments.

Q281. Which of the following is true about call money market?  

✅ A) Provides very short‑term funds between banks  

B) Provides only long‑term loans  

C) Eliminates funds completely  

D) Call money is irrelevant  

Explanation: Call money manages interbank liquidity.

Q282. Which of the following is true about repos in money market?  

✅ A) Short‑term borrowing using securities as collateral  

B) Long‑term equity financing  

C) Eliminates securities completely  

D) Repos are irrelevant  

Explanation: Repos provide short‑term liquidity.

Q283. Which of the following is true about government bonds?  

✅ A) Long‑term debt instruments issued by government  

B) Short‑term notes only  

C) Eliminates bonds completely  

D) Bonds are irrelevant  

Explanation: Government bonds are capital market instruments.

Q284. Which of the following is true about corporate bonds?  

✅ A) Long‑term debt instruments issued by corporations  

B) Short‑term notes only  

C) Eliminates bonds completely  

D) Corporate bonds are irrelevant  

Explanation: Corporate bonds raise long‑term funds.

Q285. Which of the following is true about equity shares?  

✅ A) Represent ownership in a company  

B) Represent debt only  

C) Eliminate ownership completely  

D) Equity shares are irrelevant  

Explanation: Equity shares give ownership rights.

Q286. Which of the following is true about preference shares?  

✅ A) Provide fixed dividends and priority over equity holders  

B) Provide no dividends  

C) Eliminate shares completely  

D) Preference shares are irrelevant  

Explanation: Preference shares have dividend priority.

Q287. Which of the following is true about derivatives?  

✅ A) Financial instruments based on underlying assets  

B) Independent of any asset  

C) Eliminate assets completely  

D) Derivatives are irrelevant  

Explanation: Derivatives derive value from assets.

Q288. Which of the following is true about futures contracts?  

✅ A) Agreements to buy/sell assets at future date and price  

B) Spot transactions only  

C) Eliminate contracts completely  

D) Futures are irrelevant  

Explanation: Futures are standardized derivatives.

Q289. Which of the following is true about options contracts?  

✅ A) Give right but not obligation to buy/sell assets  

B) Require mandatory purchase  

C) Eliminate rights completely  

D) Options are irrelevant  

Explanation: Options provide flexibility.

Q290. Which of the following is true about stock exchanges?  

✅ A) Platforms for trading shares and securities  

B) Platforms only for deposits  

C) Eliminate trading completely  

D) Exchanges are irrelevant  

Explanation: Stock exchanges facilitate capital market trading.

Q291. Which of the following is true about primary market?  

✅ A) Where new securities are issued for the first time  

B) Where only old securities trade  

C) Eliminates issuance completely  

D) Primary market is irrelevant  

Explanation: Primary market issues new securities.

Q292. Which of the following is true about secondary market?  

✅ A) Where existing securities are traded among investors  

B) Where only new securities are issued  

C) Eliminates trading completely  

D) Secondary market is irrelevant  

Explanation: Secondary market trades existing securities.

Q293. Which of the following is true about SEBI in India?  

✅ A) Regulates securities market and protects investors  

B) Issues currency only  

C) Eliminates regulation completely  

D) SEBI is irrelevant  

Explanation: SEBI governs Indian capital markets.

Q294. Which of the following is true about NYSE?  

✅ A) Major US stock exchange for global securities trading  

B) Domestic exchange only  

C) Eliminates trading completely  

D) NYSE is irrelevant  

Explanation: NYSE is a leading global exchange.

Q295. Which of the following is true about NASDAQ?  

✅ A) US electronic exchange specializing in tech stocks  

B) Traditional floor exchange only  

C) Eliminates trading completely  

D) NASDAQ is irrelevant  

Explanation: NASDAQ is tech‑focused.

Q296. Which of the following is true about London Stock Exchange (LSE)?  

✅ A) Major global exchange based in UK  

B) Domestic exchange only  

C) Eliminates trading completely  

D) LSE is irrelevant  

Explanation: LSE is a global capital market hub.

Q297. Which of the following is true about Hong Kong Stock Exchange (HKEX)?  

✅ A) Leading Asian exchange for global investors  

B) Domestic exchange only  

C) Eliminates trading completely  

D) HKEX is irrelevant  

Explanation: HKEX connects Asia to global markets.

Q298. Which of the following is true about Tokyo Stock Exchange (TSE)?  

✅ A) Largest exchange in Japan for securities trading  

B) Domestic exchange only  

C) Eliminates trading completely  

D) TSE is irrelevant  

Explanation: TSE is Japan’s main exchange.

Q299. Which of the following is true about difference between money and capital markets?  

✅ A) Money market deals with short‑term funds, capital market with long‑term securities  

B) Both deal only with short‑term funds  

C) Eliminate markets completely  

D) Difference is irrelevant  

Explanation: Money vs capital markets differ by maturity.

Q300. Which of the following is true about importance of financial markets?  

✅ A) Facilitate savings, investment, and economic growth  

B) Eliminate growth completely  

C) Reduce GDP only  

D) Markets are irrelevant  

Explanation: Financial markets drive economic development.