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

Correct Answer:
A) Liquidity Adjustment Facility


Part of solved Currency Inflation questions and answers : General Knowledge >> Economy >> Currency Inflation








Comments

No comments available




Similar Questions
1). 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
-- View Answer
2). 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
-- View Answer
3). 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
-- View Answer
4). 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
-- View Answer
5). 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
-- View Answer


6). 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
-- View Answer
7). 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
-- View Answer
8). 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
-- View Answer
9). 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.
-- View Answer
10). 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.
-- View Answer