fbpx

Prelims-IAS –ECONOMICS MCQ-10

1..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


2..Consider the following statements regarding Lead Bank Scheme:

  1. Under the scheme, individual banks adopt particular districts for intensive development.
  2. It is applicable only to Public Sector Banks.
  3. It covers all the districts in the country.

Which of the statements given above is/are correct?
(a) 1 only

(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3


3..Sterilization by RBI is an:

(a) Open market operation

(b) Bank rate policy
(c) Deficit financing operation
(d) Change in SLR


4..Consider the following statements:

  1. CRR is the rate at which the central bank gives interest to the commercial banks for the deposits kept with the central bank.
  2. When the RBI lowers CRR, it is known said to follow an expansionary monetary policy.

Select the correct answer from the codes given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2


5..Consider the following statements regarding Dear Money:

  1. The money which flows in the economy, when the government repurchases its bonds before their maturity.
  2. In banking industry, it means period of softer interest regime.

Which of the above given statement(s) is/are correct?
(a) 1 only
(b) 2 only

(c) Both 1 and 2
(d) Neither 1 nor 2


508 total views, 2 views today

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!