Q210. Which money aggregate is commonly referred to as broad money in Indian monetary statistics?
[WBCS Mains 2021]
A. M1
B. M2
C. M3
D. Currency supply only
Answer: (C) M3
Explanation: M3 encompasses currency with the public along with demand and time deposits and specified other deposits with RBI. Because it includes time deposits, it is broader than immediately spendable money balances in M1.
Q209. Which of the following was associated with the original fourteen-bank nationalisation?
[WBCS Mains 2021]
A. 1921
B. 1949
C. 1969
D. 1991
Answer: (C) 1969
Explanation: Fourteen large Indian commercial banks were nationalised in July 1969. A second nationalisation in 1980 brought six more banks into public ownership. These changes aimed to expand banking access and redirect credit priorities.
Q208. What term denotes the rate of a bank’s minimum lending benchmark under the older benchmark system?
[WBCS Mains 2021]
A. Prime money ratio
B. Base rate
C. Fiscal spread
D. Real effective exchange rate
Answer: (B) Base rate
Explanation: The base-rate framework required banks to transparently publish a minimum benchmark for their loans, subject to specified exceptions. It was introduced to improve interest-rate transmission and borrower awareness before subsequent reforms.
Q207. In which city is the National Stock Exchange based?
[WBCS Mains 2021]
A. New Delhi
B. Mumbai
C. Nagpur
D. Kolkata
Answer: (B) Mumbai
Explanation: The National Stock Exchange is headquartered in Mumbai. It is an important electronic trading venue for equities and other permitted instruments, operating subject to regulatory oversight by the Securities and Exchange Board of India.
Q206. A person who owns a company’s debentures is legally regarded primarily as its what?
[WBCS Mains 2021]
A. Equity shareholder
B. Creditor
C. Debtor
D. Director
Answer: (B) Creditor
Explanation: Debentures are debt instruments, so their holders lend funds to the issuing company and acquire a contractual claim for interest and repayment. They do not thereby become shareholders or receive normal equity voting rights.
Q205. What is traded in the gilt-edged securities market?
[WBCS Mains 2021]
A. Gold ornaments
B. Government debt securities
C. Firearms
D. Unrefined metals
Answer: (B) Government debt securities
Explanation: The gilt-edged market deals in government securities, traditionally regarded as having low sovereign default risk. It is not a bullion market; its function is raising government debt finance and providing liquid debt instruments.
Q204. The expressions bull market and bear market are used mainly in which market?
[WBCS Mains 2021]
A. Foreign-trade shipping
B. Retail banking
C. Share market
D. Industrial manufacturing
Answer: (C) Share market
Explanation: Bull markets denote sustained optimism and rising prices, while bear markets denote prolonged pessimism and declining prices. These terms describe securities-market trends rather than routine banking operations or physical-goods production.
Q203. Which claim correctly characterises an equity-oriented mutual fund?
[WBCS Mains 2021]
A. It guarantees a predetermined return
B. It invests predominantly in shares
C. It contains no market risk
D. It must invest only in government bonds
Answer: (B) It invests predominantly in shares
Explanation: Equity mutual funds allocate most of their assets to company shares and consequently fluctuate with market performance. They generally do not guarantee fixed returns, unlike the contractual interest claims offered by many bonds.
Q202. Which statement incorrectly describes the Reserve Bank of India?
[RRB NTPC CBT I, 8 Feb, Shift 1 2021]
A. It serves as the central bank
B. It manages currency and monetary policy
C. It is privately owned as of 2021
D. It supervises banks
Answer: (C) It is privately owned as of 2021
Explanation: Although the RBI began as a privately held institution, it was nationalised in 1949. By the time of this examination it was wholly government-owned, functioning as India’s monetary authority and banking regulator.
Q201. Who has responsibility for regulating the supply of money in India?
[RRB NTPC CBT I, 11 Feb, Shift 2 2021]
A. SBI
B. Reserve Bank of India
C. SEBI
D. IRDAI
Answer: (B) Reserve Bank of India
Explanation: The RBI manages the monetary framework and influences money and credit conditions using tools such as policy interest rates, reserve requirements and market operations. Other named institutions serve commercial or sector-specific regulatory roles.
