CURRENCY INFLATION MCQS SET 13

CURRENCY INFLATION MCQS SET 13

121) Which one of the following is the mechanism used by Reserve Bank of India (RBI) under its credit policy by which provides to the States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments?
A) State Liquidity Adjustment Facility
B) Cash Reserve Requirement
C) Liquidity Adjustment Facility
D) Ways and means advances
Correct Answer: Ways and means advances
   
122) Consider the following
1. Normal ways and means advances are clean and without the pledge of the Union Government.
2. Special ways and means advances are secured advances provided against the dated securities and pledge of Government of India.
Which of the statements given above is/are correct about the ways and means advances made by the Reserve Bank of India?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
123) Foreign currency which has a tendency of quick migration is called
A) Hot currency
B) Gold currency
C) Soft currency
D) Hard currency
Correct Answer: Hot currency
   
124) Consider the following objectives
1.To secure regional co-operation as regards the settlement of monetary transactions among the members of the Union.
2. To provide a system for clearing payments among the member countries on a multilateral basis.
Which of the objectives given above is/are the primary objective of Asian Clearing Union (ACU)?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
125) Which one of the following is correct about the 'Commercial Papers (CPs)' in the Indian money market?
A) It is issued by Indian Commercial Banks
B) It is issued by the Central Government
C) It is issued by the companies with a net worth more than 5 crore
D) It is issued by the companies with a net worth less than 50 lakh
Correct Answer: It is issued by the companies with a net worth more than 5 crore

126) Consider the following functions of the LAF in Indian Monetary Policy
1. It influences the volume of liquidity In the money market.
2. It stabilises the short-term rate of interest or the call rates.
Which of the functions given above is/are the main functions of the LAF?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
127) The Central Banks of a country is the member of the Asian Clearing Union (ACU) Which one of the following countries is not the member of the ACU?
A) Bangladesh
B) Bhutan
C) Myanmar
D) Thailand
Correct Answer: Thailand
   
128) Which of the following constitutes reserve money ?
1. Currency in circulation
2. Banker's deposits with RBI
3. Other deposits with RBI
4. Office savings of Banks
5. Call/Term funding from financial institutions
Choose the correct answer using the codes given below
A) 2, 3 and 5
B) 1, 4 and 5
C) 1, 2 and 3
D) All of these
Correct Answer: 1, 2 and 3
   
129) Which one of the liquidity aggregates as per the recommendations of the Working Group on Money Supply: Analytics and Methodology of Compilation, includes the Public Deposits of Non-banking Financial Companies?
A) L1
B) L2
C) L3
D) None of these
Correct Answer: L3
   
130) Consider the following instruments
1. Credit Monitoring Arrangement
2. Credit Authorisation Scheme
3. Cash Reserve Requirement
4. Statutory Liquidity Requirement
Which of the instruments given above are used in the Selective Credit Control in India?
A) 1, 2 and 3
B) 1, 2 and 4
C) 2 and 3
D) 1 and 2
Correct Answer: 1 and 2