Q132. 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 Central Bank. 2. Deposit of currency in commercial banks by the public. 3. Borrowing by the government from the Central Bank. 4. Sale of government securities to the public by the Central Bank. Select the correct answer using the codes given below:

The sum of which of the following constitutes Broad Money in India? 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks 4. Oth

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

Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The corre

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

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

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

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

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

In the context of Indian economy, ‘Open Market Operations’ refers to:

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

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 statements regarding Reserve Bank of India: 1. It is a banker to the Central Government 2. It formulates and administers monetary policy

Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-r

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

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

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

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

Consider the following: 1. Market borrowing 2. Treasury bills 3. Special securities issued to RBI Which of these is/are components(s) of internal debt?

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

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. Tight monetary policy of the US Federal Reserve could lead to capital flight. 2. Capital flight may increase the interest

In the context of governance, consider the following: 1. Encouraging Foreign Direct Investment inflows 2. Privatization of higher educational Institutions 3. Do

Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India. 2. Majority foreign equity holding in In

Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

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

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

Which of the following activities constitute a real sector in the economy? 1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics

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 the Indian Public Finance, consider the following statements: 1. External liabilities reported in the Union Budget are based on historical exc

Consider the following statements: 1. Reserve Bank of India was nationalized on 26 January, 1950 2. The borrowing programme of the Government of India is handle

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

Consider the following statements: Other things remaining unchanged, market demand for a good might increase if 1. price of its substitute increases 2. price of

Consider the following statements: The price of any currency in international market is decided by the 1. World Bank 2. Demand for goods/services provided by th

Which of the following constitute a Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the cor

Consider the following statements: The effect of the devaluation of a currency is that it necessarily: 1. Improves the competitiveness of domestic exports in th

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

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

Consider the following actions which the government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable polic

If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be:

Consider the following statements : The price of any currency in international market is decided by the: 1. World Bank 2. Demand for goods/services provided by

What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? 1. To bring the idle gold lying with Indian ho

Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve bank of India

Consider the following statements in respect of the digital rupee: 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its

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

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

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

Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machiner

Which of the following statements are correct in respect of a Money Bill in the Parliament? 1. Article 109 mentions special procedure in respect of Money Bills.

Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services

Consider the following markets: 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in cap

Which one of the following statements correctly describes the meaning of legal tender money? (a) The money which is tendered in courts of law to defray the fee

With reference to Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated

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

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reduc

Match List-I with List-II and select the correct answer using the codes given below the lists: | List-I (Term) | List-II (Explanation) | | :--- | :--- | | A. F

Which of the following has/have occurred in India after its liberalisation of economic policies in 1991? 1. The share of agriculture in GDP increased enormously

In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owed by households 2. Amounts outstanding on credit c

Which of the following factors/policies were affecting the price of rice in India in the recent past? 1. Minimum Support Price 2. Government’s trading 3. Govern

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

Consider the following: 1. Fringe Benefit Tax 2. Interest Tax 3. Securities Transaction Tax Which of the above is/are Direct Tax/Taxes?

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign currency earni

Under which of the following circumstances may ‘capital gains’ arise? 1. When there is an increase in sales of product 2. When there is a natural increase in th

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

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

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:

“Gold Tranche” (Reserve Tranche) refers to:

With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct? 1. Bitcoins are tracked by the Central Ban

What does venture capital mean?

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? 1. The Government intends to use the revenue

With reference to the sectors of the Indian economy, consider the following pairs: | Economic activity | Sector | | :--- | :--- | | 1. Storage of agr

With reference to physical capital in Indian economy, consider the following pairs: | Items | Category | | :--- | :--- | | 1. Farmer’s plough | Worki

With reference to the Digital India Land Records Modernisation Programme, consider the following statements: 1. To implement the scheme, the Central G