banking

1. If the RBI wants to infuse credit in Banking system in our country, which of the followings can be done?
   (a) Decreasing CRR
   (b) Decreasing SLR
   (c) Both (a) and (b)
   (d) None of the above
   
   Answer

   (c) Both (a) and (b)
2. Buying and selling of eligible securities by RBI in the money market can be termed as
   (a) Open Economy Operations
   (b) Open Market Operations
   (c) Credit Control Measures
   (d) Credit Creation Measures
   (e) None of these
   
   Answer

   (b) Open Market Operations
3. Which agency in India provides refinance of export credit?
   (a) SIDBI
   (b) NABARD
   (c) RBI
   (d) EXIM Bank
   (e) Government of India
   
   Answer

   (d) EXIM Bank
4. When the Government of India cannot raise enough financial resources through taxation, it finances its expenditure through various means like borrowing from market, running down its balances with RBI etc. This can be exactly called as
   (a) Fiscal Deficit Financing
   (b) Deficit Financing
   (c) Capital Infusion
   (d) Restructuring
   (e) None of these
   
   Answer

   (b) Deficit Financing
5. Expand MAT related to tax?
   (a) Minimum Additional Tax
   (b) Maximum Alternative Tax
   (c) Maximum Additional Tax
   (d) Minimum Alternative Tax
   (e) None of these
   
   Answer

   (d) Minimum Alternative Tax
6. Expand FRBM.
   (a) Financial Responsibility and Budget Management
   (b) Fiscal Responsibility and Budget Maintenance
   (c) Fiscal Responsibility and Budget Management
   (d) Fiscal Risk and Budget Management
   (e) None of these
   
   Answer

   (c) Fiscal Responsibility and Budget Management
7. Deficit financing can (these are also demerits of it)
   (a) Cause inflation
   (b) Bring rise in fiscal deficit
   (c) Bring rise in credit creation in banks
   (d) All above
   (e) None of the above
   
   Answer

   (d) All above
8. If the rupees depreciate, what is the effect on the exporters?
   (a) They are unaffected
   (b) They are in loss
   (c) They are in profit
   (d) They get credit crunch
   (e) None of these
   
   Answer

   (c) They are in profit
9. What is Reserve Money (RM)?
   (a) Currency in circulation with the public
   (b) Deposits of some people with RBI
   (c) Cash reserves of the banks
   (d) Total of the above three options
   (e) None of the above
   
   Answer

   (d) Total of the above three options
10. What is the objective of introduction of ‘Marginal Standing Facility’ by RBI?
    (a) To contain volatility in the overnight inter-bank rates
    (b) To contain volatility in MIBOR
    (c) To contain volatility in LIBOR
    (d)To match with standard Tier 1 capital Ratio
    (e) None of these
    
    Answer

    (a) To contain volatility in the overnight inter-bank rates