CURRENCY INFLATION MCQS SET 25

CURRENCY INFLATION MCQS SET 25

241) The effect of inflation on tax revenue results in a situation known as:
A) stagflation
B) reflation
C) fiscaldrag
D) disinflation
Correct Answer: fiscaldrag
   
242) M1 includes:
A) currency with public
B) demand deposit with bank
C) other deposits with RBI
D) all of the above
Correct Answer: all of the above
   
243) M3 includes:
A) M1+T.D
B) M1 + post office saving deposit
C) M1 + post office total deposit
D) M1 + national saving certificate
Correct Answer: M1+T.D
   
244) Exchange Rate Management is the _______ function of RBI.
A) Elective
B) Non-supervisory
C) Promotional
D) Traditional
Correct Answer: Traditional
   
245) Which paper currency denomination NOT issued by RBI?
A) Re.1
B) Rs.5
C) Rs.10
D) Rs.500
Correct Answer: Re.1

246) Whose signature is found on Paper Currency in India?
A) President of India
B) Prime-Minister of India
C) Governor of RBI
D) Finance Secretary of India
Correct Answer: Governor of RBI
   
247) Currency issued by RBI (and also by Government of India) is called as:
A) Auction Tender
B) Bound Tender
C) Trade Tender
D) Legal Tender
Correct Answer: Legal Tender   
 
248) Which Act conferred the monopoly on Government of India to issue currency notes ending the issue of currency by presidency and private banks?
A) Paper Currency Act 1861
B) Paper Currency Act 1919
C) Paper Currency Act 1969
D) Paper Currency Act 1971
Correct Answer: Paper Currency Act 1861
   
249) In which year the RBI first issued Rs.5 Bank Note bearing the portrait of George VI?
A) 1928
B) 1938
C) 1945
D) 1948
Correct Answer: 1938
   
250) As per the present rules. RBI can issue the paper currency denomination up to the value of:
A) Rs.20000
B) Rs.10000
C) Rs.30000
D) Rs.100000
Correct Answer: Rs.10000