Tag: money and banking

Questions Related to money and banking

NM1 in the money stock in India refers to:

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Post Office Savings Deposits

  2. Total Post Office Deposits

  3. Currency + Demand Deposits plus other Deposits with RBI

  4. Time Deposits with Banks

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Correct Option: C

As per RBI's new classification, if Rajesh transfers money from his Savings Account and makes a Fixed Deposit maturing after one year

instruments of monetary policy and the reserve bank of india money and banking economics

  1. M1 falls, but M3 rises

  2. M1 rises, but M3 falls

  3. Both M1 and M3 falls

  4. Both M1 and f43 remain constant

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Correct Option: A

Which of these are functions of RBI?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Issue of Currency

  2. Managing Public Debt

  3. Rediscounting Bills of Commercial Banks

  4. All of the above

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Correct Option: D

Who is the official "lender of the last resort" in India?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. State Bank of India

  2. Punjab and National Bank

  3. Reserve Bank of India

  4. Oriental Bank of Commerce

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Correct Option: C
Explanation:

RBI is the official lender of the last resort in India. Lender of the last resort means Central bank coming to the rescue of other banks in times of financial crisis.

RBI stands for _____________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Regulatory Bank of India

  2. Reserve Bank of India

  3. Rural Bank of India

  4. Regional Bank of India

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Correct Option: B

Which of these are functions of RBI?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Specifying Excise and Custom Duty Rates

  2. Specifying Income Tax Rates

  3. Representing India in International Economic Forums

  4. All of the above

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Correct Option: C

Which of the following policies forms a part of the Monetary Policy?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. International Trade Policy

  2. Exchange Rate Policy

  3. Prices and Incomes Policy

  4. Export-Import Policy

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Correct Option: B

Which of the following is not a Qualitative Credit Control measure of RBI?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Capital Rationing

  2. Moral Suasion

  3. Statutory Liquidity Ratio

  4. Margin Requirements

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Correct Option: C

Monetary policy in India is regulated by _______________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Ministry of finance

  2. RBI

  3. Planning Commission

  4. SEBI

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Correct Option: B

In order to discourage investment in the economy, the RBI may __________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. increase bank rate

  2. decrease bank rate

  3. buy securities in the open market

  4. decrease CRR

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Correct Option: A