1. A pivotal tool employed by the Reserve Bank of India (RBI) for the purpose of regulating money supply and liquidity conditions within the financial system. This monetary policy mechanism revolves around the buying and selling of government securities:-
A OPEN MARKET OPERATION
B LIQUIDITY ADJUSTMENT FACILITY
C WAY AND MEANS ADVANCE
D FISCAL DEFICIT FINANCING
2. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?
- Cut and optimise the Statutory Liquidity Ratio
- Increase the Marginal Standing Facility Rate
- Cut the Bank Rate and Repo Rate
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
3. MONETARY POLICY COMMITTEE IS HEADED BY
A FINANCE MINISTER
B RBI GOVERNOR
C CHAIRMAN, FINANCE COMMISSION
D CHAIRMAN, NITI AYOG
4. BANKING BOARD BUREAU DEALS WITH
A APPOINTMENT, PROMOTION, AND REGULATION OF CHAIRMAN OF PSU BANKS AND FINANCIAL INSTITUTIONS
B RECRUITMENT IN BANKING AND INSURANCE SECTOR
C LIQUIDITY MANAGEMENT.
D FORMULATING MONETARY POLICY
A RBI meets all the demands of the commercial banks in times of difficulties
B RBI meets all the reasonable demands of the commercial banks in times of difficulties
C RBI is the last lender to the Government at the centre and the states
D RBI grants loans to the banks and also the Governments in states
6. VRRR (VARIABLE RATE REVERSE REPO) SOMETIMES COMES IN NEWS IT DEALS WITH:-
A allows the RBI to absorb excess liquidity from commercial banks by offering them an avenue to park their surplus funds with the central bank.
B allows the RBI to fuse excess liquidity to commercial banks by offering them an avenue to provide extra loan to interested borrower.
c it allows banks to adopt flexibility in their day to day operation and management.
d none of the above.
7. Market Stabilisation scheme (MSS) includes
a) The objective of providing the RBI with a stock of securities with which it can intervene in the market for managing liquidity.
b) These securities are issued to meet the government’s expenditure
c) This is a part of fiscal policy.
d) None of the above.
8. The basic functions of Reserve Bank of India includes:-
a formulation of monetary policy,
b monitoring the function of their banks and issue guidelines for their regulation.
c issue government security.
d all of the above.
9 service area approach is related to
a The concerned bank should meet the banking needs of the service area by creating link between bank credit- production and productivity and income expansion.
b liquidity management policy of RBI
c government intervention to provide social security benefits.
d none of the above.
10 India ranks first position in international remittance recipient country. the ranks is estimated by.
a international monetary funds
b world bank
c UNCTAD
d WTO
1 A
2 B
3 B
4 A
5 A
6 A
7 A
8 D
9 A
10 B
