Which of the following is NOT a function of commercial banks? MCQ with Answer and Explanation

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Which of the following is NOT a function of commercial banks?

A. Credit creation

B. Providing loans and advances

C. Issuing currency notes

D. Accepting deposits

Answer: Option C

Solution (By JKSSB Mock Tests)

Issuing currency notes is the sole prerogative of the Reserve Bank of India. Commercial banks accept deposits, provide loans and create credit.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is not a monetary policy instrument of the RBI?

A. Government expenditure

B. Repo rate

C. Open market operations

D. CRR

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Correct Answer: Option A

Explanation:
Government expenditure is a fiscal policy instrument, not a monetary policy instrument.

This question belongs to: Economy GK Economy Set 1

Question #2

Revenue deficit is calculated as:

A. revenue expenditure minus revenue receipts

B. total expenditure minus total receipts

C. fiscal deficit minus primary deficit

D. revenue receipts minus revenue expenditure

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Correct Answer: Option A

Explanation:
Revenue deficit is revenue expenditure minus revenue receipts.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Human Development Index' was introduced by:

A. UNDP in 1990

B. IMF

C. World Bank

D. UNESCO

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Correct Answer: Option A

Explanation:
The Human Development Index was introduced by UNDP in 1990.

This question belongs to: Economy GK Economy Set 1

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