CURRENCY INFLATION MCQS SET 10

CURRENCY INFLATION MCQS SET 10

91) A foreign exchange agreement between two parties to exchange the principal and/or interest payments of a loan for equivalent aspects of an equal in net present value loan in the form of each other's currency is known as
A) debt swap
B) currency swap
C) interest swap
D) principal swap
Correct Answer: principal swap
   
92) Which of the following would include Foreign Direct Investment in India?
1. Subsidiaries of companies in India.
2. Majority foreign equity holding in Indian companies.
3. Companies exclusively financed by foreign companies.
4. Portfolio investment.
Select the correct answer using the codes given below
A) 1, 2, 3 and 4
B) 2 and 4
C) 1 and 3
D) 1, 2 and 4
Correct Answer: 1, 2 and 4
   
93) Consider the following statements
1. Bank Rate is the rate at which RBI lends to the commercial banks through its discount window to help the banks meet depositor's demands and reserve requirements.
2. Bank Rate imposed by the RBI is stable and not changes with the market conditions.
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: Only 1
   
94) Consider the following kinds of credit controls
1. Minimum margins for lending against specific securities
2. Ceiling on the amounts of credit for certain purposes
3. Discriminatory rate of Interest charged on certain types of advances
Which of the credit controls given above are used by RBI as a selective credit control measures?
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) All of these
Correct Answer: All of these
   
95) After a gap of over 20 years, re.1 note has been released In the country and it bears the signature of
A) Finance Secretary
B) RBI Governor
C) Prime Minister
D) Speaker
Correct Answer: Finance Secretary

96) Consider the following components
1. Notes in circulation
2. Circulation of rupee coins
3. Circulation of small coins
4. Cash on hand with banks
Which of the components given above is/are part of the currency with the public?
A) Only 2
B) 1, 2 and 3
C) 2, 3 and 4
D) All of these
Correct Answer: All of these
   
97) Which one among the following is the total amount of money available in an economy at a specific time?
A) Near money
B) Narrow money
C) Money volume
D) Money stock
Correct Answer: Money stock
   
98) Which one of the following is the component of the deposit money with the public?
A) Demand deposits of banks
B) Time deposits with banks
C) Other deposits with RBI
D) Both 'a' and 'c'
Correct Answer: Both 'a' and 'c'
   
99) Consider the following statements
1. The rupee coin and half rupee coins have unlimited legal tenders.
2. The subsidiary coins also have unlimited legal tenders.
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: Only 1
   
100) Which one of the following is the major component of the money supply in the Indian Economy?
A) Currency component
B) Deposit component
C) Treasury bills with public
D) Both 'a' and 'b'
Correct Answer: Both 'a' and 'b'