CURRENCY INFLATION MCQS SET 07

CURRENCY INFLATION MCQS SET 07

61) Consider the following statements
1. Buying and selling of the eligible securities by Reserve Bank of India is an Important feature of the open market operation.
2. Open market operation influences the volume of loans and advances made by the commercial banks in India.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
62) Which one of the following issues the currency notes and coins of one rupee and lower denomination in India?
A) SBI
B) RBI
C) Government of India
D) Ministry of Finance
Correct Answer: Ministry of Finance
   
63) Consider the following
1. New Broad Money (NM3)
2. New Narrow Money
3. All Deposits with the Post Office Savings Banks
4. National Savings Certificates
Which of the components given above are correct included in the Liquidity Aggregates (L1) in the Indian Economy?
A) 1, 2, 3 and 4
B) 2 and 3
C) 1 and 3
D) 2 and 4
Correct Answer: 1 and 3
   
64) Which one among the following is correct about the money whose value comes from a commodity out of which it is made?
A) Flat money
B) Commodity money
C) Near money
D) Electronic money
Correct Answer: Commodity money
   
65) Which one of the following money supplies is also known as Narrow Money in the Indian economy?
A) M1
B) M2
C) M3
D) M4
Correct Answer: M1

66) Consider the following measures
1. Repo Rate
2. Cash Reserve Requirement
3. Reverse Repo Rate
Which of the measures given above is/are major instrument(s) used in the Liquidity Adjustment Facility (LAF)?
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) Only 2
Correct Answer: 1 and 3
   
67) Consider the following statements about the Reserve Requirements
1. Reserve requirement can be used as an instrument of monetary policy.
2. Required reserve ratio is used as a tool to Influence the country's borrowing and interest rates.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
68) Which of the following is/are examples of 'Near Money'?
1. Treasury bill
2. Credit card
3. Savings accounts and small lime deposits
4. Retail money market mutual funds
Select the correct answer using the codes given below
A) Only 1
B) Only 2
C) 1, 2 and 3
D) 1, 3 and 4
Correct Answer: 1, 3 and 4
   
69) Convertibility of rupee implies
A) being able to convert rupee notes into gold.
B) allowing the value of rupee to be fixed by market forces.
C) freely permitting the conversion of rupee to other currencies and vice versa.
D) developing an international market for currencies in India.
Correct Answer: freely permitting the conversion of rupee to other currencies and vice versa.
   
70) Which one among is correct about the Sucre Currency in the world economy?
A) It is a proposed regional currency for the Eastern European Union.
B) It is a proposed regional currency for the South Asian Association of Regional Cooperation (SAARC)
C) It is a proposed regional currency for the Bolivarian Alliance for the Americas (ALBA)
D) None of the above
Correct Answer: It is a proposed regional currency for the Bolivarian Alliance for the Americas (ALBA)