Which of the following is a feature of the Indian Financial System? MCQ with Answer and Explanation

Which of the following is a feature of the Indian Financial System?
A. It is entirely unregulated
B. It only includes commercial banks
C. It does not include capital markets
D. It consists of both organized and unorganized sectors
Answer: Option D
Solution (By JKSSB Mock Tests)
The Indian Financial System comprises both the organized sector (RBI, banks, stock exchanges) and the unorganized sector (moneylenders, indigenous bankers).

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Practice More Accountancy and Book Keeping Questions

Question #1
In cost accounting, if the 'Margin of Safety' is 20% of actual sales, and the actual sales are ₹5,00,000, what is the break-even sales?
A. ₹4,00,000
B. ₹1,00,000
C. ₹5,00,000
D. ₹3,00,000

Correct Answer: Option A


Explanation:
Margin of Safety = Actual Sales - BEP Sales. 20% of 5,00,000 = 1,00,000. Therefore, BEP Sales = Actual Sales - MOS = 5,00,000 - 1,00,000 = ₹4,00,000.

Question #2
S1: Under GST, the 'Time of Supply' for goods supplied on an approval basis is 6 months from the date of removal. S2: If the goods are not rejected within 6 months, the time of supply is the date of removal. Which statement(s) is/are correct?
A. S2 only
B. S1 only
C. Neither S1 nor S2
D. Both S1 and S2

Correct Answer: Option D


Explanation:
Section 12(6) of the CGST Act states that for supply on approval, the time of supply is 6 months from the date of removal, or the date of invoice if earlier. If not rejected within 6 months, it is the date of removal. Both are correct.

Question #3
According to the Garner vs. Murray rule, the deficiency of an insolvent partner must be borne by solvent partners in their:
A. Gaining Ratio
B. Capital Ratio just before dissolution
C. Profit Sharing Ratio
D. Equal Ratio

Correct Answer: Option B


Explanation:
The landmark ruling states that a capital loss due to insolvency must be borne by solvent partners in proportion to their last agreed capitals.