GK Quiz on Monetary Policy of India
Take the following GK Quiz consisting of questions on monetary policy of India. The quiz would be extremely helpful to the candidates preparing for various Government Job exams.
Monetary Policy
Take the following GK quiz based on the monetary
policy of India. This is the policy that aims to maintain price stability and
also stabilize the exchange rate creating a healthy balance of payment,
financial stability, and economic growth in the country. Take a look below
QUIZ
Que.1). What is meant by monetary policy?
a). Process by which the Parliament controls the money
supply
b). Process by which the central bank or monetary
authority of a country controls supply of money
c). Process by which International Market controls the
money supply
d). None of the above
Ans. b
Que.2). Who is the Central monetary policy in India?
a). RBI
b). Finance Ministry
c). Parliament
d). Prime Minister
Ans. a
Que.3). What is the difference between real interest
rate and nominal rate?
i) Real interest rates take into account inflation
ii) Nominal rates are those which apply only to borrowers
and not lenders
a). Only i
b). Only ii
c). Both i and ii
d). None of the above
Ans. a
Que.4). Quantitative easing is the common name for?
a). Asset selling by a central bank
b). Asset purchasing by a central bank
c). Lowering of interest rate for commercial bank
lending
d). When a central bank reduce rates
Ans. b
Que.5). Who is empowered to control expansion of bank
credit?
a). Finance Minister
b). Home Minister
c). Reserve Bank of India
d). None of the above
Ans.c
Que.6). Which of the following are the indicators of
the Monetary Policy?
a). Inflation
b). GDP
c). MSF Rate
d). All of the above
Ans. d
Que.7). What is meant by Repo Rate?
i) Rate at which RBI lends commercial banks in place
of Govt securities
ii) Rate at which Commercial Banks lend the clients
a). Only i
b). Only ii
c). Both i and ii
d). None of the above
Ans. a
Que.8). Increase in Repo Rate can
i) Increase the cost of borrowing and lending of the
banks
ii) Decrease the cost of lending to the banks
a). Only i
b). Only ii
c). Both i and ii
d). None of the above
Ans. a
Que.9). What is the CRR?
i) It is a percentage of bank deposits that they keep
with the RBI as Gold deposit only
ii) It is a deposit made by banks with RBI in form of
reserve or balances
a). Only i
b). Only ii
c). Both i and ii
d). None of the above
Ans. b
Que.10). Which of the following statements is true of
SLR?
a). It is to be maintained by all Financial
Institutions
b). It is to be maintained as liquid assets
c). These need to be kept in non cash form
d). All of the above
Ans. d
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