Fiscal Policy & Monetary Policy in India UPSC Questions

Economics

Fiscal Policy & Monetary Policy in India MCQ Questions


7.
Consider the following statements:
1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.
Which of the statements given above is/are correct?
UPSC - 2013
A.
1 only
B.
2 only
C.
Both 1 and 2
D.
Neither 1 nor 2
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ANSWER :
A. 1 only
8.
An increase in the Bank Rate generally indicates that the
UPSC - 2013
A.
market rate of interest is likely to fall
B.
Central Bank is no longer making loans to commercial banks
C.
Central Bank is following an easy money policy
D.
Central Bank is following a tight money policy
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ANSWER :
D. Central Bank is following a tight money policy
9.
Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of government securities from the public by the Central Bank
2. Deposited of currency in commercial banks by the public
3. Borrowing by the government from the central Bank
4. Sale of government securities to the public by the Central Bank
Select the correct answer using the codes given below:
UPSC - 2012
A.
1 only
B.
2 and 4 only
C.
1 and 3
D.
2, 3 and 4
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ANSWER :
C. 1 and 3
10.
When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?
UPSC - 2015
A.
India's GDP growth rate increases drastically
B.
Foreign Institutional Investors may bring more capital into our country
C.
Scheduled Commercial Banks may cut their lending rates
D.
It may drastically reduce the liquidity to the banking, system
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ANSWER :
C. Scheduled Commercial Banks may cut their lending rates
11.
If the interest rate is decreased in an economy, it will
UPSC - 2014
A.
decrease the consumption expenditure in the economy
B.
increase the tax collection of the Government
C.
increase the investment expenditure in the economy
D.
increase the total savings in the economy
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ANSWER :
C. increase the investment expenditure in the economy
12.
In the context of Indian economy, which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements?
1. To enable the Central Bank to control the amount of advances the bank can create
2. To make the people's deposite with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements
Select the correct answer using the code given below.
UPSC - 2014
A.
1 only
B.
1 and 2 only
C.
2 and 3 only
D.
1, 2, 3 and 4
😑 View Answer Rough Work Error
ANSWER :
A. 1 only