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CSS :: Money Banking and International Trade


31.  During the period of hyper-inflation, there takes place astronomical rise in prices and, as a result, money becomes almost worthless. Such a situation was witnessed in Germany in 1923 and in China in:
A. 1947 B. 1949
C. 1951 D. 1953

32.  Stagflation refers to a situation which is characterised by:
A. Deflation and rising unemployment B. Inflation and deflation
C. Sustained price-rise and rising unemployment D. Stagnant employment and deflation

33.  The first explanation of stagflation was offered originally in 1931 by:
A. Friedrich A.von Hayek B. J-M. Keynes
C. Bent Hansen D. Milton Friedman

34.  The reduction or elimination of inflation is known as:
A. Disinflation B. Deflation
C. Creeping inflation D. Stagflation

35.  Which of the following is not a function of a commercial bank?
A. Accepting public deposits B. Granting loans and advances
C. Undertaking agency functions D. Banker to the Government

36.  Which of the following is not a liability of commercial banks?
A. Demand deposits B. Time deposits
C. Advances from the central bank D. Security holdings

37.  Which is not a function of the central bank of a country?
A. Lender of the last resort B. Controller of credit
C. Custodian of nation's foreign exchange reserves D. Supervisor of nation's fiscal policy

38.  Under the unit banking system, each individual bank is a separate entity having its own independent management and board of directors. Which country is generally regarded as the home of the unit banking system?
A. USA B. Germany
C. France D. Japan

39.  The branch banking system is currently in vogue in most countries of the world. Identify the country where it first developed:
A. South Africa B. UK
C. Canada D. Australia

40.  The china banking system a variant of the group banking system, developed around the mid-nineteenth century and reaching the apex of popularity in the present century. In which country did it develop?
A. USA B. UK
C. Germany D. Italy




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