12th Grade > Economics - 2
MONETARY POLICY MCQs
Total Questions : 28
| Page 2 of 3 pages
Answer: Option C. -> Issuing of coins
:
C
Issuing of coins is not a function of the Central Bank.
:
C
Issuing of coins is not a function of the Central Bank.
Answer: Option D. -> All of the above
:
D
All the given options have to maintain SLR.
:
D
All the given options have to maintain SLR.
Answer: Option B. -> 3%
:
B
Inflation rate refers to the increase in price levels.
:
B
Inflation rate refers to the increase in price levels.
Answer: Option D. -> No interest is paid by the RBI
:
D
No interest is paid by the RBI on the money deposited under the CRR measure
:
D
No interest is paid by the RBI on the money deposited under the CRR measure
Answer: Option B. -> High
:
B
When it takes a large amount of currency to purchase goods and services, the purchasing power is low, which means the price levels are high.
:
B
When it takes a large amount of currency to purchase goods and services, the purchasing power is low, which means the price levels are high.
Answer: Option B. -> Decreases its value
:
B
Inflation means an increase in price levels or decrease in the purchasing power. Hence it reduces the value of money stored under the mattress.
:
B
Inflation means an increase in price levels or decrease in the purchasing power. Hence it reduces the value of money stored under the mattress.
Answer: Option A. -> It increases the CRR
:
A
When RBI wants to reduce liquidity in the banking system, it increases the CRR as it reduces the money supply in the economy.
:
A
When RBI wants to reduce liquidity in the banking system, it increases the CRR as it reduces the money supply in the economy.
Answer: Option B. -> Inflation
:
B
Inflation refers to the increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in price levels.
:
B
Inflation refers to the increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in price levels.
Answer: Option A. -> clearing
:
A
The central bank acts a clearing house ensuring that accounts are settled and reducing the amount of labour and time involved.
:
A
The central bank acts a clearing house ensuring that accounts are settled and reducing the amount of labour and time involved.
Answer: Option C. -> Excess reserves
:
C
The reserves held by Commercial Bankswith the RBI over and above the statutory minimum, are called excess reserves.
:
C
The reserves held by Commercial Bankswith the RBI over and above the statutory minimum, are called excess reserves.
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