Answer: Option B. -> 1982
Answer: (b)

Answer: Option C. -> Decreased money circulation helps in controlling the inflation
Answer: (c)When inflation becomes very high, the RBI decreases supply of money (to check inflation) by adopting light monetary policy.

Answer: Option D. -> All of the above
Answer: (d)
Monetary Base or High-Powered Money is the total liability of the Monetary Authority of India i.e. RBI.
All the currency notes and coins issued by RBI does not matter who is holding them, is always the liability of RBI. When Government and banks deposit their money with RBI, it becomes the liability of RBI. (In the same way as when you deposit money in your bank, then the deposits become the bank’s liability towards you).
For a detailed understanding, you can refer to the book on Indian Economy by Vivek Singh.

Answer: Option B. -> All of the above
Answer: (b)

Answer: Option B. -> Both (i) & (ii)
Answer: (b)
Since a lot of urban-cooperative banks (UCBs) were also facing issues, RBI has brought in the “Supervisory Action Framework” (SAF) for UCBs in place of PCA for commercial banks. The three parameters (NPA level, Return on Assets
i.e. profit and Capital Adequacy Ratio), based on which PCA is invoked, SAF is also invoked based on three similar parameters (NPA level, two consecutive years loss and capital adequacy ratio), but the level may be different at which SAF is triggered.
SAF in UCB can also be initiated in case of serious governance issues. Once a UCB has been put under SAF, various restrictions on dividends, donations, new loans, capital expenditure etc. can be imposed, which are again similar to PCA restrictions.

Answer: Option D. -> financing of environmental friendly projects by banks
Answer: (d)
Green banking is like a normal bank, which considers all the social and environmental/ecological factors with an aim to protect the environment and conserve natural resources. It is also called an ethical bank or a sustainable bank.
They are controlled by the same authorities but with an additional agenda toward taking care of the Earth’s environment/ habitats/resources.

Answer: Option B. -> (i), (ii) & (iii) only
Answer: (b)
One of the basic reasons for keeping CRR with RBI is to provide safety to the public deposits. It also ensures the solvency of banks i.e. staying in business and proper functioning and liquidity situation.
Since banks do not earn interest on the CRR, so it is idle money for the banks which increases costs for banks.

Answer: Option A. -> The value of money is increasing.
Answer: (a)
Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit.
Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy.

Answer: Option B. -> rate of growth is slower than the rate of price increase
Answer: (b)
In economics, stagflation is a situation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high.
Stagflation occurs when the economy isn’t growing but prices are, which is not a good situation for a country to be in.
This happened to a great extent during the 1970s, when world oil prices rose dramatically, fueling sharp inflation in developed countries. For these countries, including the U.S., stagnation increased the inflationary effects.

Answer: Option A. -> Reserve Bank of India
Answer: (a)