Q1. With the help of Monetary Policy, the ______or monetary authority of a country controls the credit supply.
1. Bank of India
2. Central Bank (RBI)
3. SBI
4. Indian Banking Association
5. None of These
Ans: 2
Q2. _______controls the supply of money i.e liquidity in the market and bank credit.
1. RBI
2. Indian Banking Association
3. SEBI
4. All of these
5. None of These
Ans:1
Q3. Which of the following is correct-
1. The Central Bank has the duty to see that legitimate credit requirements of the market are fulfilled to stabilize the market.
2. It makes sure same credit is not used for unproductive and speculative purposes so that risk related to credit are mitigated.
3. RBI uses Monetary policy as one of the ways to control inflation.
4. All of the Above
5. None of These
Ans:4
Q4. The most important objective of monetary policy in India is_______.
1. Growth with Stability
2. Reduce Poverty and Achieve Stability in the market
3. Overall Monetary Stability in the market
4. None of These
5. All of these
Ans:1
Q5. The monetary policy management regulation of Indian Banking Industry includes-
1. Availability of Money supply and Credit supply only
2. Cost of Money supply and Credit supply only
3. Use of Money Supply and Credit supply only
4. All of the Above
5. None of These
Ans:4
Q6. Price Stability means promoting ______with special emphasis on price stability.
1. Financial Development of a country
2. Economic Development of a country
3. Strategic Financial Development in a country
4. All of the above
5. None of These
Ans:2
Q7. An instrument of monetary policy open market operation means buying or selling of ________from or to the public and banks.
1. Bonds and other local securities
2. Debentures and Shares
3. Government Securities
4. All of th above
5. None of These
Ans:3
Q8. The RBI sells government securities in the market through Market Stabilization Scheme(MSS) to control the _______.
1. Flow of Finance in banks
2. Flow of Credit
3. Flow of Governmental Securities
4. All of These
5. None of These
Ans:2
Q9. If RBI wants to increase the credit flow it buys ______.
1 Government Securities
2 Shares and Debentures
3 Other Local and Short term securities
4 All of these
5 None of These
Ans:1
Q10. The Cash Reserve Ratio is a direct instrument of credit control. Under the RBI Act, 1934 every ______ has to keep certain minimum cash reserves with RBI as a security on which RBI does not pay any intrest.
1 Public Bank
2 Commercial Bank
3 Industrial and Agricultural Banks
4 All of these
5 None of These
Ans:2
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