SEBA Class 10 Economic Chapter 1 MCQs | Money and Banking

This article provides the previous year’s HSLC MCQs Question Answers, Pre-Final Examination 2023-24 MCQs of Different Districts, and Model MCQs for 2025 on SEBA Class 10 Economic Chapter 1 MCQs ( Money and Banking). We aim to get 100 percent common in the 2025 HSLC Exam.

Previous Year HSLC MCQs on Money and Banking

1. The name of the Central Bank of India is _______

(HSLC-2024) (Biswanath 2023-24) (Nagaon 2023-24) (South Salmara 2023-24)

(A) State Bank of India
(B) Bank of Hindustan

(C) Reserve Bank of India

(D) United Bank of India

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2. Which of the following alternatives are characteristics of money?

(HSLC-2024)

(i) General acceptability
(ii) Homogeneity

(iii) Liquidity

(iv) Stability of value

(A) (i), (ii), (iv)

(B) (ii), (iii), (iv)

(C) (i), (iii), (iv)

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3. Identify two primary functions of money from the alternatives given below :

(HSLC-2024)

(i) Money is a medium of exchange.
(ii) Money acts as a standard of measurement of values of goods and services.
(iii) Money acts as a standard of deferred payments.
(iv) Money functions as the store of value.

(A) (i) and (ii)

(B) (i) and (iii)

(C) (iii) and (iv)

(D) (ii) and (iv)

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4. Which of the following is not a function of commercial banks?

(HSLC-2024)

(A) The commercial bank mobilizes savings.
(B) The commercial banks offer loans.

(C) The commercial banks can create credit money.

(D) The commercial bank issues paper currency.

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5. Where is the Headquarters of NABARD situated?

(HSLC-2024)

(A) In Kolkata

(B) In Mumbai

(C) In Chennai

(D) In New Delhi

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6. ____________is not a characteristic of money.

(HSLC-2023)

(A) General acceptability
(B) Homogeneity
(C) Liquidity
(D) Easily Perishable  good

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7. The five stages in the process of evolution of money are _____

(HSLC-2023)

(a) Paper money → Coinage → Metallic Standard → Animal Standard  →  Barter System

(b) Barter System → Animal Standard → Metallic Standard → Coinage  →  Paper Money

(c) Barter System → Paper Money → Metalic Standard → Animal  Standard → Coinage

(d) Animal Standard → Metallic Standard → Coinage → Barter System → Paper Money

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8. Which of the following financial institutions was made operational since 1990 to promote modernisation, expansion and to create markets for the products of the small industries in India?  

(HSLC-2023)

(a) National Bank for Agriculture and Rural Development (NABARD)
(b) Small Industries Development Bank of India (SIDBI)
(c) Regional Rural Banks (RRBs)
(d) Life Insurance Corporation of India (LICI)

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9. Which one of the following banks was first set up in India in 1770?

(HSLC 2017) (Kamrup Metro 2023-24) (Nagaon 2023-24)

(a) Bank of Venice

(b) Reserve Bank of India

(c) State Bank of India

(d) Bank of Hindustan

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10. Which one of the following Central Banks is the world’s oldest Central Bank?

(HSLC 2018) (South Salmara 2023-24)

(A) The Bank of Hindustan

(B) The Riks Bank of Sweden

(C) The Hong Kong Bank

(D) The Bank of Italy

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Pre-Final Examination 2023-24 MCQs of Different Districts on Money and Banking

Disadvantages of the barter system

11. Suppose, you have a goat and you need rice. Your friend has rice, but he does not want goat, he wants/needs fish, but you do not have fish.  This problem in the barter system is termed as _________

(Golaghat 2023-24)

(A) Lack of double coincidence of wants

(B) Lack of common unit of account.

(C) Indivisible of Commodities

(D) Lacks a store of value of goods and service

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Evolution of Money: A Brief Account

12. Which among the following is correct about the evolution of money?

(Charaideo 2023-24) (Goalpara 2023-24)

(A) Animal standard → Barter system → Coinage → Metalic standard  → Paper money

(B) Coinage → Barter system → Animal standard → Metalic c standard  → Paper money

(C) Barter system → Animal standard → Metalic standard → Coinage  → Paper money

(D) Barter system → Paper money → Animal standard → Metalic standard → Coinage

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13. The first stage of development of money is – 

(Dhemaji 2023-24)

(A) Barter system

(B) Animal value

(C) Paper money

(D) Cheque

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14. The third stage in the evolution of money ________

(Biswanath 2023-24)

(a) Animal standard

(b) Barter system

(c) Metallic Standard

(d) Coinage

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What is money

15. According to an economist Anything that is generally acceptable as a medium of exchange is money. The economist was  ____

(Golaghat 2023-24)

(A) Recardo

(C) Adam Smith

(B) Alfred Marshall

(D) Geoffrey Crowther

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16. Imagine you have a time machine and you travel back to the barter system era. How would you explain the concept of money to a person from that time period?

(Kamrup 2023-24)

(A) Money is a glittering object that people exchange for goods and
(B) Money is a piece of paper with a specific value that can be used to  purchase goods and services
(C) Money is a form of trust between people, allowing them to exchange goods and services without the need for immediate barter.
(D) Money is a magical substance that allows people to create wealth out of thin air.

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Characteristics of money

17. Consider the following statements about the characteristics of money and  choose the correct answer:

(Charaideo 2023-24) (Goalpara 2023-24)

(i) Money must have general acceptability.

(ii) Fish, Egg, Milk, etc. can be money.

(A) (i) is false and (ii) is true.

(B) (i) is true and (ii) is false.

(C) both (i) and (ii) are correct.

(D) both (i) and (ii) are false.

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18. Characteristics of Money______

(Sivsagar 2023-24)

(i) Divisibility

(ii) Liquidity

(iii) Medium of Exchange

(iv) Standard of deferred payments

(A) (i) and  (iii)

(B) (ii) and  (iii)

(C) (i) and  (ii)

(D) (i) and (iv)

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19. Land, Gold, and Silver are also assets like money but their liquidity is less  than that of money because  ________

(Sonitpur 2023-24)

(a) These are very precious

(b) These are not perishable

(c) These can not be instantly converted into goods and services
(d) These can not be instantly sold out

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20. Which one of the following is the non-legal money?  

(Udalguri 2023-24)

(A) Paper money

(B) Black money

(C) Cheque money

(D) Metal money

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21. _______is not a characteristic of Money.  

(Dhemaji 2023-24)

(A) General acceptability

(B) Homogeneity

(C) Liquidity

(D) Easily perishable goal

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22. Which of the following is not the characteristic of Money?

(Hailakandi 2023-24)

(A) Money must have general acceptability

(B) Money must have cognizability
(C) Money must not  have liquidity

(D) Money must have stability of value

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23. The characteristics of Money are_______

(Charaideo 2023-24)

(i) There must be general acceptance of currency

(ii) Currency must have liquidity property

(iii) Currency is a medium of exchange

(a) (i) and (ii)

(b) (ii) and (iii)

(c) (i) and (iii)

(d) (i), (ii) and  (iii)

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Functions of money

24. Which one of the following is not true regarding the functions of money?

(Dhubri 2023-24)

(a) Medium of Exchange

(b) A measure

(c) Store of value

(d) General acceptability

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Types of money

25. The Part of the Currency supplied in a country that the Central Bank directly controls is called___________

(Dhubri 2023-24)

(a) Hot Money

(b) Near money

(c) Easy money

(d) High-power money

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26.  10 rupee coin is an example of  ________

(Sonitpur 2023-24)

(a) Hot money
(b) Dear money
(c) Legal tender money
(d) Non legal tender money

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27. When the general acceptability of money as a medium of exchange is  supported by the law of the land is  ________

(South Salmara 2023-24)

(A) Non-legal tender money

(B) Token money

(C) Cheque money

(D) Legal tender money

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28. Money that goes out of the country is called________

(Sivsagar 2023-24)

(A) Hot Money

(B) Dear Money

(C) Black Money

(D) Fiat Money

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29. _______Money is used as a medium of exchange supported by Authority.

(Dhemaji 2023-24)

(A) Legal Tender Money

(B) Paper Money

(C) High Power Money

(D) Fiat Money

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30. A Cheque is a _______

(Nagaon 2023-24)

(a) Paper Money

(b) Token Money

(c) Legal Tender Money

(d) Non-Legal Tender Money

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31. Cheque is/ are______.

(Golaghat 2023-24) (Dhemaji 2023-24)

(a) Non-legal Tender Money

(b) Legal Tender Money

(c) Recent Money

(d) Token Money

(A) (a) and (c)

(B) (a) and (b)

(C) (b) and (c)

(D) (d) and (a)

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32. Consider the following statements and choose the correct answer:

(Goalpara 2023-24)

(i) A cheque is a legal tender money.

(ii) An individual refuses to accept a cheque.

(A) (i) is correct and (ii) is incorrect

(B) (i) is incorrect and (ii) is correct

(C) both (i) and (ii) are correct

(D) both (i) and (ii) are incorrect

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33. Choose the option that shows the correct relationship between  Assertion (A) and Reason (R).

(Kamrup 2023-24)

Assertion: A cheque is a written order to a bank to pay a certain sum  of money to a specified person
Reason: A Cheque is a negotiable instrument, which means it can be  transferred from one person to another
(A) Both the assertion and the reason are true
(B) The assertion is true, but the reason is false
(C) The reason is true, but the assertion is false
(D) Neither the assertion nor the reason is true

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34. Consider the following statement and choose the correct answer.

(Kamrup Metro 2023-24)

(i) A cheque is a legal tender money
(ii) An individual can refuse to accept cheque
(A) (i) is correct, (ii) is incorrect
(B) (i) is incorrect, (ii) is correct
(C) Both (i) & (ii) are correct
(D) Both (I) & (ii) are incorrect

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35. When the general acceptability of Money as a medium of Exchange has no legal support. Refusal to accept will not mean a violation of the law of the land it becomes  ____________

(Hailakandi 2023-24)

(A) Legal tender money

(B) Non-legal tender money

(C) Token money

(D) Standard money

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36. The Indian currency is called  _______

(Bongaigaon 2023-24)

(A) Rupees

(B) Dollar

(C) Pound

(D) Yen

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37. Join Part A to Part B and choose the correct sequence.

(Biswanath 2023-24)

(a) (i) -(d); (ii)-(c); (iii)-(b); (iv) -(a)

(b) (i) -(c); (ii)-(b); (iii)-(a); (iv)- (d)

(c) (i)-(b); (ii)-(c); (iii)-(a); (iv)-(d)

(d) (i)-(a); (ii) -(b); (iii) -(b); (iv)-(d)

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Role of money

No MCQs from this topic in the Pre-Final Examination of 2023-24.

Drawbacks of money

No MCQs from this topic in the Pre-Final Examination of 2023-24.

Origin of banking

38. In Italy with which of the following terms the word ‘Bank’ was used?

(Dhemaji 2023-24)

(A) Monte

(B) Banek

(C) Banco

(D) Banke

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39. The oldest bank of India is  _________

(Bongaigaon 2023-24)

(A) Reserve Bank of India

(B) Bank of Hindustan

(C) Guwahati Bank/

(D) State Bank of India

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40. Gauhati Bank was established in  _________

(Biswanath 2023-24)

(a) 1920

(b) 1926

(c) 1929

(d) 1936

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Classification of Banks

41. In which year was the Reserve Bank of India established?  

(Charaideo 2023-24) (Goalpara 2023-24) (Hailakandi 2023-24) (Udalguri 2023-24)

(A) 1948

(B) 1950

(C) 1935

(D) 1964

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42. When was NABARD established?

(Hailakandi 2023-24) (Nagaon 2023-24) (Jorhat 2023-24)

(a) 1955

(b) 1964

(c) 1975

(d) 1982

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43. Which one of the following is an agricultural development bank?

(Biswanath 2023-24) (Goalpara 2023-24) (South Salmara 2023-24)

(A) SIDBI

(B) RBI

(C) NABARD

(D) SBI

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44. The Head Quarter of SIDBI is at________

(Hailakandi 2023-24) (Nagaon 2023-24)

(a) Lucknow

(b) Delhi

(c) Kolkata

(d) Rajasthan

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45. Where is the Headquarters of RBI located?

(Kamrup Metro 2023-24) (Kokrajhar 2023-24)

(A) Kolkata

(B) Mumbai

(C) Chennai

(D) New Delhi

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46. Functions of the central Bank are ________.

(Charaideo 2023-24)

(i) The Central Bank provides credit

(ii) The Central Bank prints paper currency

(iii) The Central Bank credit debit money

(iv) The Central Bank performs development functions

(a) (i) and (ii)

(b) (iii) and (iv)

(c) (i) and (iv)

(d) (ii) and (iv)

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47. State Bank of India mainly ___________

(Bongaigaon 2023-24)

(A) Central Bank

(B) Commercial Bank

(C) Co-operative Bank

(D) Agricultural  Development India

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48. Which of the following is not a function of Commercial Bank?

(Kamrup 2023-24)

 (A) Issue of currency

(B) Mobilising savings

(C) Creation of credit money

(D) Offering loans

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49. State Bank of India was established in the year _________

(Dhubri 2023-24)

(a) 1935

(b) 1955
(c) 1950
(d) 1960

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50. Full form of IDBI________

(Dhubri 2023-24)

(a) Industry Development Bank of India

(b) Industrial Development Bank of India

(c) Industrial Developing Bank of India

(d) Industry Developing Bank of India

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51. Write in the correct sequence according to the year of establishment, (old and new)

(Golaghat 2023-24)

(A) Reserve Bank of India  – Gauhati Bank – Bank of Hindustan – Industrial Development Bank of India

(B) Bank of Hindustan – Reserve Bank of India – Gauhati Bank – Industrial Development Bank of India

(C) Reserve Bank of India  – Gauhati Bank – Industrial Development Bank of India – Bank of Hindustan

(D) Bank of Hindustan  – Gauhati Bank  – Reserve Bank of India – Industrial Development Bank of India

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52. Which of the following doesn’t fall within the functions of the  Reserve Bank of India?

(Dhubri 2023-24)

(a) Bank of Bank’s

(b) Credit Controller

(c) Custodian of foreign currency

(d) Allocating funds directly to the farmers

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53. Match the following with appropriate choices.

(South Salmara 2023-24)

(A) (w-II), (x-III), (y-IV), (z-I)

(B) (w-III), (x-IV), (y-I), (z-II)

(C) (w-I), (x-II), (y-III), (z-I)

(D) (w-I),(x-III), (y-II), (z-IV)

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54. In which year 14 Commercial Banks of India were nationalized?

(Kamrup Metro 2023-24)

(A) 19 July, 1969

(B) 17 July, 1969

(C) 18 July, 1989

(D) 17 July, 1989

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55. In today’s monetary and banking system, without the physical transfer of money and through adjustments in bank accounts transactions are settled. This facility is called.  

(Sonitpur 2023-24)

(a) Physical banking

(b) Internal banking

(c) External banking

(d) Core banking

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Non-Banking Financial Institutions (NBFIs)

56. Consider the following statements A and B about the nonbanking financial institutions (NBFIs) and choose the correct answer. 

(Sonitpur 2023-24)

A: NBFI depositors can withdraw money through cheques.
B: NBFIs have a deposit insurance scheme to cover the risk of depositors.

(a) A is true but B is false
(b) A is false but B is true
(c) Both A and Bare true
(d) Both A and B are false

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Other Chapters MCQs

Model MCQs for 2025 on International Organization

Given MCQs are extra questions. These MCQs are from those topics, which are yet to be touched by the previous year’s SEBA Questions and the 2023-24 Pre-Final Exam of different District questions. By practicing these MCQs, matric student can enhance their understanding and fully grasp the Money and Banking Chapter.

57. Who among the following says, “Every time you spend money, you’re casting a vote for the kind of world you want”?

(A) Adam Smith

(B) Geoffrey Crowther

(C) Anna Lappe

(D) None of the above

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58. Regarding the Barter system, consider the following statements.

1. Lack of self-sufficiency leads to interdependence.
2. Interdependence leads to barter.

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

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59. In which of the following places of Assam, does the traditional barter system still prevail?

(A) Borduwa Mela

(B) Jonbeel Mela

(C) Barpeta Howly Rash Mela

(D) None of the above

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60. Which of the following is not a disadvantage of the barter system?

(A) the barter system lacks a common unit of account.

(B) the barter ceases to operate when commodities are indivisible.

(C) the barter system lacks a store of value of goods and services.

(D) the barter system works when there is a lack of double coincidence of wants.

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61. How many functions are performed by Money?

(A) 3

(B) 4

(C) 5

(D) 6

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62. Which of the following is not a function of money?

(A) a medium

(B) a measure

(C) a liquidity

(D) a standard

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63. When the face value or written value or embossed value of money is higher than its intrinsic or metallic value, it becomes_____________

(A) Legal tender money

(B) Non-legal tender money

(C) Token money

(D) Standard money

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64. Out of the total money supply in the country that part which is under the direct control of the country’s Central Bank is_________

(A) Legal tender money

(B) Non-legal tender money

(C) Token money

(D) High-power money

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65. The Bank of Venice was set up in___________

(A) Switzerland

(B) Italy

(C) USA

(D) UK

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66. ____________used the term ‘Banck’ in place of Monte.

(A) The Dutch

(B) The Briishers

(C) The Americans

(D) The Germans

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67. Riksbank of Sweden was set up in _________

(A) 1601

(B) 1635

(C) 1656

(D) 1770

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68. Regarding the functions of the Central Bank, consider the following statements.

1. The Central bank is the banker’s bank.
2. The Central bank issues currency.
3. The Central bank mobilises savings.
4. The Central bank controls the volume of credit.

(A) Only 1 and 2
(B) Only 1, 2 and 3
(C) Only 1, 2 and 4
(D) All 1, 2, 3, and 4

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69. Which of the following doesn’t fall within the functions of the  Commercial Banks of India?

(A) The commercial bank mobilises savings.

(B) The commercial bank offers loans.

(C) The commercial banks as a whole can create credit money.

(D) The commercial bank acts as the custodian of the foreign exchange reserves of India.

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70. Regarding the primary function of IDBI, consider the following statements.

1. to offer financial assistance to the industries
2. to develop the institutions that are related to industrial development of the country.
3. to create markets for the products of the small industries

(A) Only 1
(B) Only 1 and 2 
(C) Only 2 
(D) Only 2 and 3

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71. NABARD was established in the year____________

(A) 1951

(B) 1964

(C) 1975

(D) 1982

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