Tag: economics

Questions Related to economics

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

RBI can decrease demand for bank credit by __________.

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

  1. lowering the bank rate

  2. increasing the bank rate

  3. maintaining the bank rate at the same level

  4. all of the above

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Correct Option: B

Narrow money refers (as per latest RBI Working Group):

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

  1. Currency + Demand Deposits + other Deposits with RBI

  2. Currency + Demand Deposits + Post office saving deposits

  3. Currency + Demand Deposits + Money at call

  4. None of the above

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Correct Option: A

Bank rate in 2012 was ________.

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

  1. 4%

  2. 4.5%

  3. 9%

  4. 6.5%

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Correct Option: C