Practice Test


Q1) Repo rate is the rate at which : Show Answer


Q2) Composite loans are given for: Show Answer


Q3) In the post reforms period, the "monetary targeting approach" of the RBI was replaced by ___________ for monetary policy formulation. Show Answer


Q4) In the post reforms period, the RBI introduced _____________ to absorb liquidity of more enduring nature from the financial system. Show Answer


Q5) In the recent years, the RBI has introduced the scheme of __________ for the rural poor by linking the banking system with the self help groups. Show Answer


Q6) In the context of opening up of India economy and its increasing global integration, the monetary policy in India now recognizes _________ as the key consideration of the conduct of monetary policy. Show Answer


Q7) In the context of opening up of India economy and its increasing global integration, the monetary policy in India has now shifted_________. Show Answer


Q8) The __________ , introduced by the RBI in June 2000, allows the RBI to manage liquidity on a daily basis and also transmit interest signals to the market. Show Answer


Q9) The Market Stabilization Scheme is an arrangement between ________ to mop up the excess liquidity generated on account of large capital inflows. Show Answer


Q10) The Government of India introduced the Credit Guarantee Fund Scheme for Micro & Small Enterprises, in the year 2000, to make available _________ to them. Show Answer


Q11) Sterilization means re-cycling of foreign capital inflows to prevent appreciation of the domestic currency. Show Answer


Q12) In the recent years, RBI has failed in managing short term liquidity on account of large inflows of foreign capital Show Answer


Q13) RBI uses treasury bills and dated government securities to absorb excess liquidity from the market under Market Stabilization Scheme (MSS). Show Answer


Q14) Liquidity Adjustment Facility was introduced to manage flexible exchange Show Answer


Q15) Repo rate is the rate at which RBI absorbs liquidity from the system Show Answer


Q16) Micro finance is one of the important tools to lend agricultural credit to rich farmers. Show Answer


Q17) There is no difference between the terms micro credit and micro finance. Show Answer


Q18) Self-help groups (SHG) have not made much impact on poverty in rural India Show Answer


Q19) SHGs are the agents of empowerment of women in rural area Show Answer


Q20) Composite loans are those loans which are given to meet both working capital requirements and also the acquisition of fixed assets by a unit Show Answer


Q21) The RBI was established as a public sector bank on 1st April 1935 Show Answer


Q22) RBI Exercises its influence on the financial market through its monetary policy Show Answer


Q23) In India, RBI controls the supply of money and bank credit Show Answer


Q24) Financial stability means the ability of the economy to absorb shocks and maintain confidence in the financial system Show Answer


Q25) Quantitative methods of money control indirectly helps in employment generation Show Answer


Q26) The large number of poor population did not even have access to banking system Show Answer


Q27) The existing banking policies, procedures and systems were not suited to meet the requirements of poor Show Answer


Q28) Micro finance is a norrow concept as compared to micro credit Show Answer


Q29) Micro credit is a small amount of money, given as loan by bank Show Answer


Q30) SHGs have been traditionally supported by government agencies Show Answer