Fiscal Policy & Monetary Policy in India UPSC Questions

Economics

Fiscal Policy & Monetary Policy in India MCQ Questions


13.
Supply of money remaining the same when there is an increase in demand for money, there will be
UPSC - 2013
A.
a fall in the level of prices
B.
an increase in the rate of interest
C.
a decrease in the rate of interest
D.
an increase in the level of income and employment
😑 View Answer Rough Work Error
ANSWER :
B. an increase in the rate of interest
14.
With reference to the Indian economy, consider the following:
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue
Which of the above is/are component/components of Monetary Policy?
UPSC - 2015
A.
1 only
B.
2, 3 and 4
C.
1 and 2
D.
1,3 and 4
😑 View Answer Rough Work Error
ANSWER :
C. 1 and 2
15.
With reference to inflation in India, which of the following statements is correct?
UPSC - 2015
A.
Controlling the inflation in India is the responsibility of the Government of India only
B.
The Reserve Bank of India has no role in controlling the inflation
C.
Decreased money circulation helps in controlling the inflation
D.
Increased money circulation helps in controlling the inflation
😑 View Answer Rough Work Error
ANSWER :
C. Decreased money circulation helps in controlling the inflation
16.
Which of the following statements is/are correct regarding the Monetary Policy Committee(MPC)?
1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below:
UPSC - 2017
A.
1 only
B.
1 and 2 only
C.
3 only
D.
2 and 3 only
😑 View Answer Rough Work Error
ANSWER :
A. 1 only
17.
Which one of the following statements correctly describes the meaning of legal tender money?
UPSC - 2018
A.
The money which is tendered in courts of law to defray the fee of legal cases.
B.
The money which a creditor is under compulsion to accept in settlement of his claims.
C.
The bank money in the forms of cheque, drafts, bills of exchange, etc.
D.
The metallic money in circulation in a country.
😑 View Answer Rough Work Error
ANSWER :
B. The money which a creditor is under compulsion to accept in settlement of his claims.
18.
If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?
1. Cut and optimize the Statutory Liquidity Ratio
2. Increase the Marginal Standing Facility Rate
3. Cut the Bank Rate and Repo Rate
Select the correct answer using the code given below:
UPSC - 2020
A.
1 and 2 only
B.
2 only
C.
1 and 3 only
D.
1, 2 and 3
😑 View Answer Rough Work Error
ANSWER :
B. 2 only