CURRENCY INFLATION MCQS SET 16

CURRENCY INFLATION MCQS SET 16

151) Which one of the following currencies is used by RBI to construct the Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) of Indian Currency?
A) Japanese Yen
B) Chinese Renminbi
C) Pound Sterling
D) All of the above
Correct Answer: All of the above
   
152) When the RBI reduces statutory liquidity Ratio by 50 basis points, which of the following is likely to happen?
A) India's GDP growth rate increases radically
B) Foreign institutional investors may bring more capital into our country.
C) Scheduled commercial Banks may cut their lending rates.
D) It may drastically reduce the liquidity to the banking system.
Correct Answer: Scheduled commercial Banks may cut their lending rates.
   
153) The Government of India and RBI have decided to introduce 1 billion pieces of rs.10 notes in polymer/ plastic on a field trial basis. Which of the following is or are the objectives behind this move?
1. Increase of the lifetime of the notes
2. Combating counterfeiting
3. Reducing cost of minting of currency.
Select the correct answer using the codes given below
A) 1 and 2
B) Only 2
C) Only 3
D) All of these
Correct Answer: All of these
   
154) The monetary and credit policy is announced by which of the following ?
A) Ministry of Finance in Centre
B) RBI
C) SBI
D) Planning Commission
Correct Answer: RBI
   
155) Consider the following statements.
1. Bank rate is the rate of interest which RBI charges its clients on their short term borrowing.
2. Repo rate Is the rate of interest which RBI charges its clients on their long term borrowing.
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: Neither 1 nor 2

156) Consider the following statements
1. Headline inflation is a measure of the total inflation within an economy.
2. Headline inflation is affected by areas of the market which may experience sudden inflationary spikes such as food, vegetables or energy.
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
   
157) Which one of the following factors leads to the Agflation in an economy?
A) Inflation led by rises in the Black economy
B) Deflation led by declines in agricultural commodity prices
C) Inflation led by rises in agricultural commodity prices
D) None of the above
Correct Answer: Inflation led by rises in agricultural commodity prices
   
158) Consider the following items
1. Food products
2. Energy
Which of the items given above are mainly responsible for the Core inflation?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
159) Economic growth is usually coupled with
A) deflation
B) inflation
C) stagflation
D) hyper inflation
Correct Answer: inflation
   
160) Consider the following statements
1. Deflation is a decrease in the general price level of goods and services.
2. Deflation is the negative inflation rate which falls below 0%.
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