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General Knowledge >> Economy >> Currency Inflation
51). Consider the following statements
1. Reserve Bank of India was nationalised in the year 1955.
2. Reserve Bank of India is a member bank of the Asian Clearing Union.
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
52). With reference to Indian economy, consider the following
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue
Which of the given is/are component(s) of Monetary Policy ?

A). Only 1
B). 2, 3 and 4
C). 1 and 2
D). 1, 3 and 4
53). Consider the following statements
1. Reserve Bank of India can print and issue currency notes of denominations from two rupee notes to ten thousand rupee notes.
2. Reserve Bank of India maintains a separate issue department to look after currency issue.
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
54). Supply of money regaining the same when there is an increase in demand for money, there will be
A). a fall in the level of prices
B). an increase in the rate of interest
C). a decrease in the rate of interest
D). an increase in the level of income and employment
55). With reference to inflation in India, which of the following statements is correct ?
A). Controlling the inflation in India is the responsibility of the government of India only.
B). The Reserve Bank of India has no role in controlling the inflation.
C). Decreased money circulation helps in controlling the inflation.
D). Increased money circulation helps in controlling the inflation.


56). An increase in the bank rate generally indicates that the
A). market rate of interest is likely to fall.
B). Central Bank is no longer making loans to commercial banks.
C). Central Bank is following an easy money policy.
D). Central Bank is following a tight money policy.
57). With reference to Flat Money, consider the following statements
1. It is the money declared by a government to be legal tender.
2. It is the money without intrinsic value.
3. It is the state issued money which is neither legally convertible to any other thing, nor fixed in value in terms of any objective standard.
Which of the statements given above is/are correct?

A). 1 and 2
B). Only 1
C). Only 2
D). All of these
58). When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen ?
A). India's GDP growth rate increases drastically.
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.
59). Consider the following statements
1. Liquidity Adjustment Facility operations help the RBI effectively transmit interest rate signals to the market.
2. Under the repo or repurchase option, banks borrow money from the RBI via the sale of securities with an agreement to purchase the securities back at a fixed rate at a future date.
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
60). Which one of the following is the custodian of Foreign Exchange Reserve of the Indian Government?
A). Security Exchange Board of India
B). Insurance Regulatory Development Authority
C). Reserve Bank of India
D). None of the above
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