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General Knowledge >> Economy >> Currency Inflation
41). Consider the following sources
1. Net bank credit to the government.
2. Bank credit to the commercial sector.
3. Net foreign exchange assets of the banking systems.
Which of the sources given above is/are the major sources of the 'Broad Money' in the India economy?

A). Only 2
B). 1 and 3
C). 2 and 3
D). All of these
42). Which one of the following laws stated that bad money drives out good if their exchange rate is set by law?
A). Gresham's law
B). Gilbert's law
C). Keynes' law
D). Kuznet's law
43). Consider the following statements with regard to SLR
1. To meet SLR, commercial banks can use cash only.
2. SLR is maintained by the banks with themselves.
3. SLR restricts the banks leverage in pumping more money into the economy.
Which of the statements given above is/are correct?

A). 1 and 2
B). 1 and 3
C). 2 and 3
D). Only 2
44). Rise in the price of a commodity means
A). rise in the value of currency only.
B). fall in the value of currency only.
C). rise in the value of commodity only.
D). fall in the value of currency and rise in the value of commodity.
45). Consider the following statements
The price of any currency in international market is decided by the
1. World Bank.
2. demand for goods/services provided by the country concerned.
3. stability of the government of the concerned country.
4. economic potential of the country in question.
Which of the statements given above are correct?

A). 1, 2, 3 and 4
B). 2 and 3
C). 3 and 4
D). 1 and 4


46). Which one of the following is emerged as a major instrument of Monetary Policy in the Indian economy?
A). Liquidity Adjustment Facility
B). Commercial Papers
C). Treasury Bills
D). None of the above
47). Which one of the following is the composition of Liquidity aggregate-2 (L2) other than Liquidity aggregate-1 (L1) in the Indian Monetary System?
A). Term deposits with Term Lending Institutions and Refinancing Institutions
B). Term Borrowing by Refinancing Institutions
C). Certificates of Deposit issued by Refinancing Institutions
D). All of the above
48). The Reserve Bank of India regulates the commercial banks in matters of
1. liquidity of assets
2. branch expansion
3. merger of banks
4. winding up of banks
Select the correct answer using the codes given below

A). 1 and 4
B). 2, 3 and 4
C). 1, 2 and 3
D). 1, 2, 3 and 4
49). Which one among the following is the globally traded currency that can serve as a reliable and stable store of value?
A). Soft Currency
B). Broad Currency
C). Local Currency
D). Hard Currency
50). Which one among the following is the precious metal (Gold) or other approved securities that a commercial bank must maintain as reserves other than the cash with RBI?
A). Cash Reserve Requirement
B). Statutory Liquidity Requirement
C). Forward Fund
D). Reserve Money
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