April 17, 2024
Consider the following regarding fiscal policy:
An expansionary monetary policy is implemented by increasing key interest rates.
2. Monetary policy refers to control of money supply to achieve the objectives of economic policy.
3. An expansionary monetary policy is also known as dovish monetary policy.
Which of the statements given is/are correct?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3 only
Consider the following statements:
1. RBI exclusively fixes the range of inflation targets in India.
2. India follows a static inflation targeting system.
Which of the statements given below is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following statement(s) is/are correct?
1. Repo rate is the instrument of capital market.
2. Repo rate influences aggregate demand.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following statements is/are correct regarding Monetary policy Committee?
1. It is required to meet at least four times annually.
2. It is a statutory committee.
Select the answer using the codes:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following is/are correct?
1. SLR is the amount that commercial banks are required to maintain in government approved securities only.
2. Banks may borrow funds through Marginal Standing Facility during severe cash shortage.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) None
Which of the following is/are correct?
1. The margin refers to the proportion of the loan amount which is not financed by the bank.
2. Reserve Bank of India always remained Government owned in its history.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following are the roles of RBI?
1. Banker to the Government.
2. Manager of Foreign Exchange.
3. Monetary Authority.
4. Issuer of Currency.
Select the answer using the codes given below:
  • (A) 1, 2 and 3 only
  • (B) 2, 3 and 4 only
  • (C) 1, 3 and 4 only
  • (D) 1, 2, 3 and 4
Consider the following statements regarding the Marginal cost of funds-based lending rate:
1. It is the minimum interest rate below which no bank is permitted to lend money.
2. It is determined by banks internally, depending upon the loan repayment time.
Select the correct statement(s) using the code given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2 
  • (D) Neither 1 nor 2
Which of the following is incorrect regarding monetary policy?
  • (A) Repo rate is the rate at which commercial banks take loans from the Reserve bank of India.
  • (B) Participants in the call money market in India currently include scheduled commercial banks.
  • (C) An accommodative stance indicates a willingness on the part of the central bank to expand money supply and increase interest rates. 
  • (D) None of the above
With reference to Indian economy, consider the following:
1. Bank rate.
2. Open market operations.
3. Public debt.
4. Public revenue
Which of the above is/are component/ components of Monetary Policy?
  • (A) 1 only
  • (B) 2, 3 and 4
  • (C) 1 and 2
  • (D) 1, 3 and 4
The monetary policy of Reserve Bank of India targets which of the following Inflation Index?
  • (A) Wholesale Price Index (WPI)
  • (B) Consumer Price Index (CPI) Combined
  • (C) Consumer Price Index (CPI) Rural
  • (D) Producer Price Index
Consider the following statements:
1 Consumer Price Index for Industrial Workers is compiled by the Office of Economic advisor.
2. Inflation target for monetary policy is set by the Government of India, in consultation with the Reserve Bank, once in every five years.
Which of the above given statement(s) is/are not correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following is/are correct regarding Utkarsh 2022?
1. It is the three-year roadmap of the Reserve Bank of India.
2. It aims to improve regulation and supervision functions of the central bank. It is valid for the period 2023-2025.
Which of the above given statement(s) is/are correct?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2, and 3
Which of the following is/are correct?
1 Urijit Patel Committee first proposed the idea for the formation of a five-member Monetary Policy Committee.
2. MPC was constituted as per Section 45ZB under the RBI Act of 1934.
3. The quorum for the meeting of the MPC is four members.
Which of the above given statement(s) is/are correct?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2, and 3
Consider the following statements w.r.t. Flexible Inflation Targeting Framework:
1. Flexible Inflation Targeting Framework was introduced in 2016.
2. For this an amendment was made to the Reserve Bank of India (RBI) Act, 1934.
Which of the above given statement(s) is/are incorrect?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2

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