Fiscal Policy & Monetary Policy in India UPSC Questions

Economics

Fiscal Policy & Monetary Policy in India MCQ Questions


1.
A government budget could be met through either printing of notes or it could be borrowed known as _____ of the government.
A.
Capital
B.
Market borrowings
C.
Expense
D.
Asset
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ANSWER :
B. Market borrowings
2.
Both printing of money as well as market borrowings in India are the major functions of whom?
A.
Reserve Bank of India
B.
World Bank
C.
Bank of Baroda
D.
Asian Development Bank
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ANSWER :
A. Reserve Bank of India
3.
What is a thing which has universal acceptability, functions as a medium of exchange, and store of value?
A.
Goods and services
B.
Bank
C.
Money
D.
Loan
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ANSWER :
C. Money
4.
The coins minted at government mints under the Ministry of _____, Government of India.
A.
Finance
B.
Education
C.
Defense
D.
Home Affairs
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ANSWER :
A. Finance
5.
The basis of printing currency follows which system?
A.
Maximum reserve system
B.
Minimum reserve system
C.
Market-based system
D.
None of the above
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ANSWER :
B. Minimum reserve system
6.
If the deficit is financed through printing of money it is known as
A.
Monetization of deficit
B.
Monetized deficit
C.
Both a and b
D.
None of the above
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ANSWER :
C. Both a and b