CURRENCY INFLATION MCQS SET 15

CURRENCY INFLATION MCQS SET 15

141) Consider the following statements
1. The repo rate is the rate at which other banks borrow from the RBI.
2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.
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
   
142) Which one of the following is traded only in a small area and the currency is not backed by a national government and necessarily legal tender?
A) Local currency
B) Soft currency
C) Commodity currency
D) None of the above
Correct Answer: Local currency
   
143) Under which of the following circumstances may 'capital gains' arise?
1. When there is an increase in the sales of a product.
2. When there is a natural increase in the value of the property owned.
3. When you purchase a painting and there is a growth in its value due to Increase in its popularity.
Select the correct answer using the codes given below
A) Only 1
B) 2 and 3
C) Only 2
D) 1, 2 and 3
Correct Answer: 2 and 3
   
144) Select the All India Financial Institutions (AFFI's) currently regulated by the RBI from the given list, using the codes:
1. Exim Bank 2. NHB
3. NABARD
Codes
A) 1 and 2
B) 2 and 3
C) 1 and 3
D) 1, 2 and 3
Correct Answer: 1, 2 and 3
   
145) If all the banks in an economy are nationalised and converted into monopoly banks, the total deposits
A) will decrease
B) will increase
C) Neither increase nor decrease
D) None of the above
Correct Answer: will decrease

146) If the Cash Reserve Ratio is lowered by the RBI, its impact on credit creation will be to
A) increase it
B) decrease it
C) no impact
D) None of these
Correct Answer: increase it
   
147) Final decision of printing currency in India rests with the
A) RBI
B) Ministry of Finance
C) Cabinet Committee on Economic Affairs
D) Both 'a' and 'b'
Correct Answer: Ministry of Finance
   
148) Select the incorrect one in the conditions of depreciating rupee from the give list of the situations
A) Exports become competitive in the global market
B) Import substitution becomes impossible
C) Costlier imports results into higher prices propelling further depreciation
D) Both 'a' and 'b'
Correct Answer: Import substitution becomes impossible
   
149) Consider the following statements regarding India's Minimum Reserve system and select the incorrect one/one's using the codes given below
1. In minimum reserve system, RBI had to keep a minimum reserve of gold worth rs.115 crore and rest in Indian rupees.
2. The minimum requirement of foreign securities was diluted when minimum reserve system was launched.
A) Only 1
B) Only 2
C) 1 and 2
D) Neither 1 nor 2
Correct Answer: 1 and 2
   
150) If the RBI decides to adopt an 'expansionist' monetary policy, which of the following it would not do?
1. Cut CRR and optimise SLR
2. Increase MSFR (Marginal Standing Facility Rate)
3. Cut bank rate and increase Reverse Repo Rate
A) 1 and 2
B) Only 1
C) 2 and 3
D) Only 2
Correct Answer: Only 2