Q. What does GDP stand for in the context of the economy?
-
A.
Gross Domestic Product
-
B.
General Domestic Price
-
C.
Gross Development Plan
-
D.
General Development Product
Solution
GDP stands for Gross Domestic Product, which measures the total economic output of a country.
Correct Answer:
A
— Gross Domestic Product
Learn More →
Q. What does the term 'Monetary Policy' refer to?
-
A.
Government spending policies
-
B.
Regulation of money supply and interest rates
-
C.
Taxation policies
-
D.
Trade policies
Solution
Monetary Policy refers to the regulation of money supply and interest rates by the central bank to control inflation and stabilize the currency.
Correct Answer:
B
— Regulation of money supply and interest rates
Learn More →
Q. What is the primary function of the Monetary Policy Committee (MPC) in India?
-
A.
To set fiscal policy
-
B.
To determine the Repo Rate
-
C.
To regulate foreign investments
-
D.
To manage public debt
Solution
The primary function of the Monetary Policy Committee (MPC) is to determine the Repo Rate and formulate monetary policy.
Correct Answer:
B
— To determine the Repo Rate
Learn More →
Q. What is the primary objective of the Reserve Bank of India (RBI)?
-
A.
To regulate the stock market
-
B.
To manage the country's foreign exchange
-
C.
To control inflation and stabilize the currency
-
D.
To provide loans to the government
Solution
The primary objective of the RBI is to control inflation and stabilize the currency, ensuring economic stability.
Correct Answer:
C
— To control inflation and stabilize the currency
Learn More →
Q. What is the purpose of the Repo Rate?
-
A.
To control inflation
-
B.
To provide liquidity to banks
-
C.
To regulate foreign exchange rates
-
D.
To set the interest rates for savings accounts
Solution
The Repo Rate is used by the RBI to provide liquidity to banks, allowing them to borrow money in times of need.
Correct Answer:
B
— To provide liquidity to banks
Learn More →
Q. What is the significance of the SLR (Statutory Liquidity Ratio)?
-
A.
It determines the minimum cash reserves for banks
-
B.
It regulates the amount of gold banks must hold
-
C.
It ensures banks maintain a certain percentage of liquid assets
-
D.
It controls the interest rates on loans
Solution
The SLR ensures that banks maintain a certain percentage of liquid assets, promoting financial stability.
Correct Answer:
C
— It ensures banks maintain a certain percentage of liquid assets
Learn More →
Q. Which of the following is a component of Microeconomics?
-
A.
National income
-
B.
Inflation rates
-
C.
Consumer behavior
-
D.
Unemployment rates
Solution
Consumer behavior is a component of Microeconomics, focusing on individual and business decision-making.
Correct Answer:
C
— Consumer behavior
Learn More →
Q. Which of the following is a financial instrument used in the Indian economy?
-
A.
Equity shares
-
B.
Government bonds
-
C.
Mutual funds
-
D.
All of the above
Solution
All of the options listed are financial instruments used in the Indian economy.
Correct Answer:
D
— All of the above
Learn More →
Q. Which of the following is a tool used by the RBI to control money supply?
-
A.
Cash Reserve Ratio (CRR)
-
B.
Fiscal Policy
-
C.
Public Debt Management
-
D.
Foreign Direct Investment
Solution
The Cash Reserve Ratio (CRR) is a tool used by the RBI to control the money supply by regulating the amount of funds banks must hold in reserve.
Correct Answer:
A
— Cash Reserve Ratio (CRR)
Learn More →
Showing 1 to 9 of 9 (1 Pages)
