Q155. 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. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below:

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

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 measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of the Indian rupee?

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public Revenue Which of the above is/are comp

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

Consider the following actions by the Government: 1. Cutting the tax rates 2. Increasing the government spending 3. Abolishing the subsidies in the context of e

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 , Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of Indi

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

What is/are the purpose/purposes of the Marginal Cost of the Fund-Based Lending Rate (MCLR) announced by RBI? 1. These guidelines help improve the transparency

The lowering of Bank Rate by the Reserve Bank of India leads to:

Consider the following statements: 1. Tight monetary policy of the US Federal Reserve could lead to capital flight. 2. Capital flight may increase the interest

Consider the following statements: 1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India. 2. A value of 1 for Gini Coefficient

With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. I

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

An increase in the Bank Rate generally indicates that the:

In the context of the Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to c

What is the importance of the term “Interest Coverage Ratio” of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to

When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

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 n

The money multiplier in an economy increases with which one of the following?

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

The Reserve Bank of India regulates the commercial banks in matters of: 1. liquidity of assets 2. branch expansion 3. merger of banks 4. winding-up of banks Sel

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing rev

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

With reference to ‘Urban Cooperative Banks’ in India consider the following statements: 1. They are supervised and regulated by local boards set up by

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?

Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) del

The Service Area Approach was implemented under the purview of

Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data

What was the purpose of the Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

The Chairman of public sector banks are selected by the:

Which of the following is not included in the assets of a commercial bank in India?