Q111. Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. The Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct?

With reference to India, consider the following statements: 1. The Wholesale Price Index (WPI) in India is available on a monthly basis only. 2. As compared to

With reference to the Wholesale Price Index (WPI), consider the following statements: 1. The new WPI series with base 1993 – 94 = 100 became effective from Apri

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

Which of the following statements is/are correct regarding the ‘Monetary Policy Committee (MPC)? 1. It decides the RBI’s benchmark interest rates. 2. It is a 12

Consider the following statements: 1. In India, credit rating agencies are regulated by the Reserve Bank of India. 2. The rating agency popularly known as ICRA

Consider the following statements: 1. Regarding the procurement of food-grains, the Government of India follows a procurement target rather than an open–ended p

India has experienced persistent and high food inflation in the recent past. What could be the reasons? 1. Due to a gradual switchover to the cultivation of co

With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”? 1. The government can reduce the coupon rates on its borrowin

With reference to inflation in India, which of the following statements is correct?

With reference to the Indian economy, consider the following statements: 1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of

The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following? 1. Other banks retain their deposits with the RBI. 2. The RBI

With reference to India, consider the following statements: 1. Retail investors through Demat account can invest in ‘Treasury Bills’ and ‘Government of India De

Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2.

Consider the following statements: 1. The Governor of the Reserve bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Cons

Consider the following statements: 1. In India , Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of Indi

In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following? 1. Lending to trade and industry bodies when they

A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

With reference to the Indian economy, consider the following statements: 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Dep

With reference to ‘Financial Stability and Development Council’, consider the following statements: 1. It is an organ of NITI Aayog. 2. It is headed by the Unio

With reference to the Banks Board Bureau (BBB)’, which of the following statements are correct? 1. The Governor of RBI is the Chairman of BBB. 2. BBB recommends

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increa

Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money(M3) in

In India, inflation is measured by the:

A rise in the general level of prices may be caused by: 1. An increase in the money supply 2. A decrease in the aggregate level of output 3. An increase in the

The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term? 1. It is a network of a ban

Which one of the following is likely to be the most inflationary in its effects?

Which of the following steps is most likely to be taken at the time of an economic recession?

With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal sti

Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

Consider the following statements: 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is

Which one of the following is likely to be the most inflationary in its effect?

In the context of Indian economy, consider the following pairs: | Term | Most Appropriate Description | | :--- | :--- | | 1. Melt Down | Fall in Stoc

Which one of the following statements is an appropriate description of deflation?