Practice Test

Q1) Demand management to control inflation may lead to : Show Answer

Q2) NABARD's primary role is: Show Answer

Q3) Commercial banks finance rural credit directly and through : Show Answer

Q4) Land development Banks from a part of the : Show Answer

Q5) Which of the following is not a function of the Securities and Exchange Board of India(SEBI) ? Show Answer

Q6) Depository services refer to : Show Answer

Q7) It is said that, in order to control inflation, foreign inflow needs to be sterilized. Sterilization here refers to : Show Answer

Q8) SEBI has introduce 'rolling settlement' for selected shares.
Under this system :
Show Answer

Q9) What is 'NIKKEI'? Show Answer

Q10) 'Sensitive sector' as defined by RBI includes- Show Answer

Q11) The financial year for banks is April-March but what is the Financial year for RBI ? Show Answer

Q12) OTCEI is- Show Answer

Q13) How many commodity exchange (as on December 31, 2011) are working in India? Show Answer

Q14) SEBI is a - Show Answer

Q15) Not issuing dept. of RBI should always posses the minimum gold stock of worth - Show Answer

Q16) 'Pure Banking, Nothing Else' is a slogan raised by - Show Answer

Q17) 'Smart Money' is a term used for- Show Answer

Q18) Which of the following state has been identified as a perfect banking state ensuring at least one banking account per family in all the district of the state Show Answer

Q19) RBI is nationalized in - Show Answer

Q20) SBI (Subsidiary Bank Laws) Amendment Bill passed by the parliament allows SBI to reduce is holding in its seven subsidiary banks from Show Answer

Q21) Which of the following state sows the fastest growth in expanding Micro Finance business in the country ? Show Answer

Q22) Which is a credit rating agency in India? Show Answer

Q23) Which states have not yet established any RRB? Show Answer

Q24) The rate at which RBI gives short term loan to commercial banks is called - Show Answer

Q25) Indian Banks have the maximum foreign branches in - Show Answer

Q26) The first public sector bank in india which obtained license for Internet Banking from RBI is- Show Answer

Q27) Loan provided by banks to farmers small traders come under the category of- Show Answer

Q28) Which type of bank account can be opened by a Non-Resident Indian (NRI) in India?
Show Answer

Q29) The share percentage of sponsor bank in the equity of Regional Rural Banks is Show Answer

Q30) which measure comes under quantitative credit controls adopted by Central Bank of the Country ? Show Answer

Q31) 'Base Rate' is a banking term. The Base rate is determined by - Show Answer

Q32) Which of the following markets are independently regulated by forward Market Commission? Show Answer

Q33) As per the new guidelines issued by SEBI, companies are requirement to list shares within how many days of the closure of the Initial Public Officers(IPOs) Show Answer

Q34) The base year of Wholesale Price Index has been changed from 1993-94 to 2004-05. The number of item included in this new WPI is - Show Answer

Q35) Inflation in theory occurs: Show Answer

Q36) Which of the following is not a reason for costpush inflation ? Show Answer

Q37) Among the supply side measures to contain inflation is: Show Answer

Q38) Which of the following is not true of the Regional Rural Banks (RBSs) ? Show Answer

Q39) One of the disadvantages of the Wholesale Price Index in India is that : Show Answer

Q40) Bank rate refers to : Show Answer

Q41) Which of the following is not an objective of the monetary policy of RBI? Show Answer

Q42) Narsimhan Committee recommended that SLR should be brought down to : Show Answer

Q43) Open market operation of RBI refers to : Show Answer

Q44) According to Chakravyarth Committee one of the principal cause affecting price stability in India is: Show Answer

Q45) RBI does not transact the business of which state government ? Show Answer

Q46) The first bank managed by Indians was : Show Answer

Q47) International capital flows have been uncertain and volatile, causing exchange rate and balance of payment crisis among developing countries, Among the various sources of external capital available to India which source should you consider as the most preferable ? Show Answer

Q48) The central Bank of which country has been entrusted with the responsibility of controlling inflation and, in pursuing this goal, can even impose limits on government borrowing? Show Answer

Q49) Reserve Bank Liquidity Adjustment Facility (LAF) refers to : Show Answer

Q50) Which of the following operates at the district level ? Show Answer

Q51) Which of the following was describe as the biggest ever cash purchase of the share of a bank in India ? Show Answer

Q52) Demand pull factors for inflation can be lead to : Show Answer

Q53) Inflation is described as a regressive from of taxation because : Show Answer

Q54) A rise in 'SENSEX' means Show Answer

Q55) A zero rate of inflation obtains necessarily in a yea where the annual rate of inflation. Show Answer

Q56) To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare Show Answer

Q57) Which of the following statements correctly express the difference between preference share ans equity share ? Show Answer

Q58) Which one of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years? Show Answer

Q59) Which of the following factors contribute to inflation ? Show Answer

Q60) Which of the following kinds of agricultural loans does the RBI not provide? Show Answer

Q61) In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities ? Show Answer

Q62) Which one of the following is not a feature of "Value Added Tax"? Show Answer

Q63) Which of the following statements is an appropriate description of deflation ? Show Answer

Q64) When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean? Show Answer

Q65) The lowering if Bank Rate by the Reserve Bank of India leads to Show Answer

Q66) A rapid increase in the rate of inflation is sometimes attributed to the "base effect'. What is "base effect"? Show Answer

Q67) In the context of independent India's economy, which one of the following was the earliest event to take place ? Show Answer

Q68) The basic aim of Lead Bank Scheme is that Show Answer

Q69) The International Development Association, a lending agency, is administered by the Show Answer

Q70) Which of the following Indian banks is not a nationalized bank ? Show Answer

Q71) The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following Show Answer

Q72) Which one of the following pairs is not correctly matched Show Answer

Q73) Which one of the following sets of commodities are exported to India by arid and semi-arid countries in the Middle East ? Show Answer

Q74) The first derivative product of India -index based futures was launched in 2000 by : Show Answer

Q75) The Sensex is a market capitalization weighed index of_____ component stocks Show Answer

Q76) Legal tender in India includes Show Answer

Q77) The central banking functions in India are performed by the Show Answer

Q78) Quantitative credit controls exclude : Show Answer

Q79) Bank rate is the rate at which : Show Answer

Q80) Activities of indigenous banker are controlled by ________? Show Answer

Q81) To reduce the supply of money the government could : Show Answer

Q82) Capital market is different from money market as: Show Answer

Q83) SEBI stands for : Show Answer

Q84) 'Over- the Counter Exchange'(OTCE) help in ? Show Answer

Q85) Bear raid means? Show Answer

Q86) Debentures and Equity differ in ? Show Answer

Q87) what are gilt-edged securities? Show Answer

Q88) How do we define the term bull and bear with regard to stock market ? Show Answer

Q89) What do you understand by the term "Jobber" ? Show Answer

Q90) What is "Futures"? Show Answer

Q91) The National Stock exchange function from Show Answer

Q92) Inflation can be moderated by : Show Answer

Q93) Fast growth in prices where money loses its value to the point where even barter may be preferable is Show Answer

Q94) In a boom : Show Answer

Q95) In a recession, GDP Show Answer

Q96) In a recession : Show Answer

Q97) An outward shift in the demand for money, other things being equal should lead to : Show Answer

Q98) If the value of the pound in terms of other currencies rises: Show Answer

Q99) Recession in the market implies: Show Answer

Q100) A rise in 'SENSEX' means
Show Answer

Q101) Which of the following would best describe the role of a merchant bank? Show Answer

Q102) Which action by the Reserve Bank would stimulate the economy in an economic downturn? Show Answer

Q103) Other things being equal, which action by the Reserve Bank of India could cause a depreciation of the rupees against other currencies ? Show Answer

Q104) Which of the following could be a cause of demand inflation ? Show Answer

Q105) Other thing being equal, what would be the impact of an increase in net capital inflow on the Indian currency ? Show Answer

Q106) A reduction in the money supply is likely to : Show Answer

Q107) Consider the following statements :
The function of the Reserve Bank of India does not include :
1) Open market operation
2) Monitoring revenue collection
3) Supervising non-banking finance companies
4) Review of the public expenditure
Which of the statements given above is/are correct ? Show Answer

Q108) Some of the measure suggested to curtail inflation are :
1) Restricting public expenditure
2) Mopping up increased liquidity through taxation or savings
3) Strengthening public distribution system
Which of the statements given above is/are correct ?
Show Answer

Q109) Which of the following is not one of the recommendations of the Task Force on Co-operative Credit (Vaidyanathan Committee ), 2004?
1) Increase the capital base of the co-operation institution.
2) Increase their autonomy and reduce government control
3) RBI to exercise direct control to enforce prudent financial management
4) Build the capacity of the personnel . Show Answer

Q110) Basel II norms of the Bank of International Settlements covers, apart from Financial Risk :
1) Supervisory Review
2) Market Discipline
3) Corporate Social Responsibility
Select the correct combination from the above : Show Answer

Q111) 'Operation Twist' is the new name given to America's Federal Bank strategy related to -
1) Increasing outsourcing activities
2) Reducing interest rates to promote long-run loans
3) Curtailing down assistance various nations
4) Selling god reserves in the market
Choose the right option Show Answer

Q112) With reference to the Wholesale Price Index (WPI) Consider the following statements :
1) The new WPI series with base 1993 to 1994= 100 became effective from April 1998.
2) In the new WPI series, the weight for primary articles has gone down by 10% point
3) The weight for electricity has increased in the new WPI series
Which of the these statements are correct ? Show Answer

Q113) Consider the following :
1) Currency with the public
2) Demand deposits with banks
3) Time deposits with banks
Which of these are included in Broad Money (M3) in India: Show Answer

Q114) The difference between a bank and a non-banking financial institution (NBF) is that:
1) a bank interacts directly with customers while an NBFI interacts with banks and governments.
2) a bank indulges in a number of activities relating to finance with a range of customers, while ab NBFI is mainly concerned with the term loan needs of large enterprise
3) a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies
4) a bank's main interest into help in business transactions and savings/investment activities while an NBFI's main interest is in the stabilization of the currency
The earlier name of WTO was Show Answer

Q115) Consider the following statement :
1) Reserve Bank of India was nationalized on 26 January 1950.
2) The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.
Which of the statements given above is/are correct ? Show Answer

Q116) Consider the following statements.
1) The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India
2) The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.
Which of the Statement given above is/are correct ? Show Answer

Q117) Which of the following pairs are correctly matched ?
1) Dow Jones : New York
2) Hang-Seng : Seoul
3) FTSE -100 : London
Show Answer

Q118) The Reserve Bank of India (RBI) acts as a banker's bank. This would imply which of the following ?
1) Other banks retain their deposits with the RBI.
2) The RBI lends funds to the commercial banks in times of need.
3) The RBI advises the commercial banks on monetary matters.
Select the correct answer using the codes given below : Show Answer

Q119) With the reference to India , Consider the following statements :
1) The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2) As compared to Consumer Price Index for Industrial Workers (CPIIW), the WPI givers less weight to food articles
Which of the statements given above is/are correct ? Show Answer

Q120) Consider the following statements:
In India, stamp duties on financial transaction are:
1) levied and collected by the State Government .
3) appropriated by the Union Government
Which of these statements is/are correct ? Show Answer

Q121) 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) Deposit 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 : Show Answer

Q122) Under which of the following circumstances any 'Capital gains 'arise?

1) When there is an increase in the sales of a product
2) When there is a natural increase in the value of the property owned
3) When you purchased a painting and there is a growth on its value due to increase in its popularity
Select the correct answer using the codes given below:
Show Answer

Q123) Micro-finance is the provision of financial services to people of low-income group. This includes both the consumer and the self-employed . The services rendered under micro finance is/are
1) Credit facilities
2) Savings facilities
3) Insurance facilities
4) Fund Transfer facilities
Select the correct answer using the codes given below the list ?
Show Answer

Q124) Why is the offering of 'teaser loans' by commercial banks a cause of economic concern ?
1) The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2) In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units
Which of the statement given above is/are correct ? Show Answer

Q125) In the context of India economy, consider the following pairs:
Terms ---- Most Appropriate description
1) Melt down -- Fall in stock prices
2) Recession -- Fall in growth prices
3) Slow down -- Fall in GDP
Which of the pairs above is/are correctly matched Show Answer

Q126) Consider the following statements :
In India, taxes on transaction in Stock Exchange and Future Markets are
1) Levied by the Union
2) Collects by the States
Which of the statements given is/are correct ? Show Answer

Q127) India has experienced persistent and high food inflation in the recent past. What could be the reason?
1) Due to a gradual switch-over to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%
2) As a consequence of increasing incomes the consumption patterns of the people have undergone a significant change.
3) The food supply chain has structural constraints
Which of the statements given above are correct ? Show Answer

Q128) Consider the following statement :
1) Life Insurance Corporation of India is the oldest insurance company in India.
2) National Insurance Corporation Limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India.
3) Headquarters of United India Insurance Company Limited are located at Chennai.
Which of the statement given above are correct? Show Answer

Q129) Consider the following statement :
The functions of commercial banks in India include
1) Purchase and sale of shares and securities n behalf of customer
3) Acting as executors and trustees of wills
Which of the statement given above are correct? Show Answer

Q130) Consider the following statement :
1) The repo rate is the rate at which other banks borrow from the Reverse Bank of India
2) A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population
Which of the statement given above are correct? Show Answer

Q131) Consider the following statement :
1) MMTC Limited in India's largest international trading organization.
2) Neelachal Ispat Nigam Limited has been set up by MMTC jointly with the Government of Odisha.
Which of the statement given above are correct? Show Answer

Q132) Consider the Following statement:

1) Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange(BSE)
2) For calculating the Sensex, all the stock are assigned proportional weight-age.
3) New York Stock Exchange is the oldest stock exchange in the world.
Which of the statement given above is/are correct?
Show Answer

Q133) Name the 3 commodities in the Wholesale Price Index.
1) Primary articles
2) Fuel, power, light and lubricants
3) manufactured products
4) food articles and industrial raw materials Show Answer

Q134) Function of RBI are:
1) issues of notes and coins
2) distribution of notes and coins
3) formulating monetary policy
4) acting as agent of government in IMF Show Answer

Q135) Non-performing Assets of the banks have increased during 2009-10. What does it say about the performance of the banks?
1) Banks have not earned good profit during the period.
2) Banks have granted which have become bad loans.
3) Banks did not make provision fOr such bad loans earlier. Show Answer

Q136) Securities and Exchange Board of India(SEBI) has asked all FIIs to divulge the structure of their offshore entities.
What purpose will it serve?
1) To identify if there is flow of funds from questionable sources.
2) To know how much money FIIs are planning to invest to India.
3) To forecast the possibility of any financial crisis Show Answer

Q137) Which are the easy ways to handle inflation in the economy?
1) Increase the money supply in the economy
2) Reduce the money supply in the economy
3) Increase credit inflow in the economy
4) Reduce credit inflow in the economy
Show Answer

Q138) Managing inflation is a very important aspect of the economy in India. Which of the following are true about inflation and its impact ?
1) Absence of inflation or deflation is not always good.
2) Inflation is an increase in the general level of prices for goods and services.
3) When inflation goes up the purchasing power of money also goes up. Show Answer

Q139) Which statements is/are true about functioning of NABARD?
1) NABARD has the responsibility in inspect RRBs and Cooperative Banks.
2) NABARD maintains R&D funds to promote research in agricultural and rural development
3) NABARD is under the planning Commission Show Answer

Q140) Some Economist call the present inflation in India as "Imported Inflation".Why is it been named like that ?
1) It is because foreign goods are costlier.
2) It is because monetary units have depreciated
3) commodities in India are being imported.
Show Answer

Q141) Some financial expert and business leaders feel that the present policies of RBI may result in hardening of interest rate. Also hardening of the rupee in international markets is possible. If it happens, what will be its impact on the markets?
1) Indian firms would like to borrow from global markets.
2) Companies may suspend plans of raising capital.
3) Indian companies would open offices/branches in foreign location to approach foreign investors directly.
Show Answer

Q142) Banks need liquidity to meet which of the following objectives of banking?
1) to meet deposit withdrawal
2) to fund loan demands
3) to maintain public confidence
Show Answer

Q143) A company undertaken a public issue which means that ___________
1) Share of the company will be issued only through public sector organization like banks/central financial institution etc.
2) Share of the company will be issued to general public through the primary market.
3) means some stakeholders/promoters are leaving the company and wish to sell their stock to general public
Show Answer

Q144) Which of the following is/are true about the "Sub-prime Crisis"?
1) It is a mortgage crisis referring to credit default by borrowers
2) Sub-prime borrowers were borrowers with low rating and high risk
3) The crisis was caused by neglecting the credit rating of the borrowers.
Show Answer

Q145) What is "Future Trading"?
1) It is a trade between two stock exchanges where in it is decided to produce's stock of each other on a fixed price throughout the year
2) It is an agreement between two parties to buy or sell an underlying assets in the future at a predetermined price
3) It is an agreement between stock exchange that they will not trade in stock of each other in future or for a predetermined period of time. Show Answer

Q146) The finance Minister of India, in one of his speeches, said that"current high inflation is not because of monetary expansion but due to supply-side bottlenecks in certain essential commodities". This means that the Finance minister is of the view that
1) the liquidity position in marked is quite comfortable these days.
2) inflation being experienced these days is not cost push inflation
3) markets are flooded with luxury goods but essential commodities are definitely i short supply Show Answer

Q147) For which of the following reasons RBI has decided to undertake mid-quarter policy review?
1) To re-align its policies
2) To take steps and ensure smooth flow of credit
3) To provided guidance to the economy
Show Answer

Q148) As per the recent press report, use of credit cards in India has gone down.What is/are the main reasons for the same?
1) High interest rate charged by the card companies
2) Rise in fraudulent activities related to use of credit cares
3) Govt polices which do not allow the launch of new credit cards by the banks Show Answer

Q149) Many times we read in newspaper that a company is planning to bring a public issues. What does it means.
1) Share of the company will be issued only through public sector organisation like banks/Central financial institution etc.
2) Share of the company will be issued to general public only through primary market
3) This means some stakeholder/promoters are willing to leave the company' Hence they wish to sell their stock to the general public
Show Answer

Q150) As we see every day, many Indian banks are in close competition to open their branches/offices in various countries.. What benefit will the India economy have if banks open branches in a foreign country?
1) It will bring substantial economic benefits to India and also to the countries where branches will be opened
2) It will help in smooth inflow of FDI, long term capital inflow and also technical know-how to India.
3) it will give between opportunities t Indian to visit foreign nations and get better facilities like education , medical treatment etc. Show Answer

Q151) Regional rural banks:
1) have limited area of operation
2) have free access to refinance facilities of NABARD
3) lend only to weaker sections Show Answer

Q152) Assertion : Balance of Payment represent a better Picture of a country economic transaction with the rest of the world than the balance of Trade Balance of Payment takes into account.

Reason : The exchange of both visible and invisible item whereas s balance of Trade does not.
Show Answer

Q153) Assertion : Devaluation of a currency may promote export.
Reason : Price of the country's products in the international market may fall due to devaluation. Show Answer

Q154) Which of the following statement about the NABARD are true?
1) NABARD has a dual role as it is an apex body and a refinance institution
2) NABARD services as a refinance institution and provides investment credit to agriculture and cottage and village industries.
3) NABARD accepts deposits from the public to improve its capital base. Show Answer

Q155) Consider the following
1) Marketing borrowing
2) Treasury Bills
3) Special securities issued to RBI
Which of these is/are component(s) of internal debt? Show Answer

Q156) With reference to India, consider the following
1) Nationalisation of Banks
2) Formation of Regional Rural Banks
3) Adoption of villages by Banks Branches
Which of the above can be considered as steps taken to achieve the 'financial inclusion' in India? Show Answer

Q157) Which of the following statements is related to Bombay Stock Exchange,
is correct? Show Answer

Q158) When the Reserve Bank of India announces an increase of the cash
reserve ratio, what does it mean? Show Answer

Q159) Who was the chairman of the 13th Finance Commission of India? Show Answer

Q160) An increase in the bank rate generally indicates that the Show Answer

Q161) The Reserves Bank of India regulates the Commercial Banks in matters of
1) liquidity of assets
2) branch expansion
3) merger of banks
4) winding-up of banks
Select the correct answer using the codes given below Show Answer

Q162) With regards to households saving, the budget proposes
1) under the Rajiv Gandhi Equity Saving Scheme, the income limit for the first time investors is being raised from Rs.10 lakh to Rs.15 lakh
2) Person taking loans for first home up to Rs.25 lakh will be entitled to an additional deduction of interest of upto Rs. 1 lakh.
3) inflation indexed bonds will be introduces to protect saving from inflation
Which of the statements given above is/are correct /
Show Answer

Q163) Kisan Credit Card was launched by Indian Government to facilitate the short-term loan and cash delivery
to farmers. Which one of the following agencies is not included in the operation of the Kisan Credits
Cards? Show Answer

Q164) Consider the following statements
1) Under Annapurna Scheme, indigent senior citizen of 65 years of age or above eligible for National Old
Age Pension, but not getting pension per month free of cost.
2) Ministry of Social justice and Empowerment has scheme in which indigent people living in welfare institutions like orphanages are given 15kg foodgrains per person per month at BPL rates
Which of the statements given above is/are correct? Show Answer

Q165) The largest of Gross Domestic product (GDP) in India comes from Show Answer

Q166) Minimum alternative tax is a tax, imposed on
1) presumptive basis
2) corporate sector
3) book profit
4) net profit
Select the correct answer using the codes given below
Show Answer

Q167) Consider the following statements
1) In the last Five year, the revenue from the direct taxes constitute more than the half of revenue receipts in India.
2) The corporate tax constitute more than 50% of direct tax revenue source of the Central Government
Which of the statements given above is/are correct? Show Answer

Q168) Value added tax is Show Answer

Q169)
Consider the following
1) Personal income tax
2) Import duty
3) Service tax
Which of the taxes given above are indirect tax ? Show Answer

Q170) Consider the following statements
1) In India, imposition of taxes on the services as a separate services taxes has been started since
independence.
2) BPO. ITS and software Products are only taxed by the Indian Government under Services Taxes
Which of the statements given above is/are correct? Show Answer

Q171) RBI issues currency notes against which of the following ? Show Answer

Q172) Consider the following statements
1) Revenue budget details with receipts from taxation and non-tax sources and the expenditure met out from thse sources.
2) Net recoveries of loans and advances to states and public sector Enterprice form the revenue receipts of the Government
Which of the statements given above is/are correct ? Show Answer

Q173) Consider the following statements
1) Asian Development Bank (ADB) is a regional development bank established in 1966.
2) Asian Development Bank (ADB) admits the members 0f the United Nations Economics and social
Commission for Asia and the Pacifics
Which of the statements given above is/are correct ? Show Answer

Q174) Consider the following statements
1) Asian Development Bank offers hard loans from ordinary capital resources on commercial items.
2) Asian Development Fund capital affiliated with the Asian Development Bank extends soft loans from
special fund resources with concessional condition
Which of the statements given above is/are correct ? Show Answer

Q175) According to Reserve Bank of India, arrange the following in increasing order of preferences to measure
inflation.
1) Wholesale price index
2) Producer price index
3) Consumer price index Show Answer

Q176)
Which one of the following law states that bad money drives out good money if the exchange rate
is set by law ? Show Answer

Q177) Economic development may be defined as a process whereby the real per captia income increases Show Answer

Q178)
Which one of the following is the compostition of Liguidity aggregate-2 (L2) other than Liquidity aggregate
-1 (L1) in the Indian Monetary System ? Show Answer

Q179) Which of the following is the precious metal (gold) or other apporved securities that a Commercial Bank
must maintain as reserves other than the cash with RBI? Show Answer

Q180) Consider the following types of income
1) personal income
2) Private income
3 Disposable income
4) Reserve Money
The correct sequence in descending order of thier magnitude is Show Answer

Q181) Why is Reserve Bank of India (RBI) also known as Bankers Bank and lender of last resort ? Show Answer

Q182) Which one of the following is the major component of the money supply in the Indian Economy ? Show Answer

Q183) Which one of the following is correct about the Commercial Papers (CPs) in the Indian money market ? Show Answer

Q184) Consider the following statements
1) Certificates of deposits are the very important instrument of the Indian money market.
2) Certificates of deposits are generally issued by the union Government with collaboration with certain
states
Which of the statements given above is/are correct ? Show Answer

Q185) Which one of the following agencies of the Indian Government publishes the Narrow Money (M1) and
Broad money (M3) on fortnightly basis ? Show Answer

Q186) Consider the following statements
1) The rank of India in terms of Quota Share in the IMF (International Monetary Fund) is below
one dozen countries
2) China ranks second just after the United States in the quota terms of IMF.
Which of the statements given above is/are correct ? Show Answer

Q187) With reference to Indian Commercial Banks Consider the following statements
1) The base rate system for the interest of the Commercial Banks was introduced in 2010.
2) The base rate system has enabled a more informed assessment of the transmission of Monetary Policy impulses to banks lending rates
Which of the statements given above is/are correct ?
Show Answer

Q188) Consider the following financial institutions of India ?
1) Industrial Finance Corporation of India (IFCI)
2) Industrial Credit and Investment Corporation of India (ICICI)
3) Industrial Development Bank of India (IDBI)
4) National Bank for Agriculture and rural Development (NABARD)
The correct chronological sequence of the establishment of these institution is Show Answer

Q189) With regards to Scheduled Commercial banks, consider the following statements about Regional Rural Banks (RRBs) in India
1) RRBs are limited to a specific region comparising one or more districts of a State.
2) RRBs grant direct loans and advances only to small and marginal farmers.
3) The lending rate of the RRBs is always less than the prevailing rates of Indian Commercial Banks
4) RRBs are functioned under the supervision of security Exchange Board of India.
Which of the statements given above are correct ? Show Answer

Q190) Which of the following is not a part of Schedule Banking Structure in India ? Show Answer

Q191) With reference to Indian Economy, consider the following statements
1) The Lead Bank Scheme was started towards the close of 1980.
2) The Lead Bank scheme was aimed to bring a balanced regional development in the country
Which of the statements given above is/are correct ? Show Answer

Q192) The functions of Central Banks are
1) Bankers to the bank
2) Custodian of foreign exchange
3) Controller of credit
4) bank of issue
5) banker, agent and financial adviser to the state
6) financial adviser to private banks
Select the correct answer using the codes given below Show Answer

Q193) Consider the following events in the Indian Economy
1) First phase of nationalisation of 16 banks.
2) Establishment of Narashimha Committee on the Banking System.
3) Enactment of FEMA Act in India.
4) Establishment of EXIM Bank in India.
Arrange the events in chronological order

Show Answer

Q194) Consider the following events in the Indian Financial System
1) Nationalisation of Reserve Bank of India
2) Foundation of Punjab National Bank
3) Nationalisation of State Bank of India.
4) Establishment of NABARD
Arrange the events given above chronologically and select the correct answer using the codes given below Show Answer

Q195) Consider the following about the Lead Banks Scheme
1) To coordinate the Cooperative banks, Commercial banks and other financial institutions in their allotted districts.
2) To survey and identify the unbanked districts and take initiatives to open bank branches.
3) To estimate the deposits potential and the credit gaps and fill the vaccum in the districts.
Which of the roles given above is/are correct ? Show Answer

Q196) Consider the following about the Banking Financial Supervision (BFS) in India
1) The RBI performs financial supervision function under the guidance of the Board for Financial Supervision (BFS)
2) Primary objective of BFS is to undertake consolidate supervision of the financial sector comparising commercial banks, financial institutions and non-banking finance companies.
Select the correct answer using the codes given below
Show Answer

Q197) With reference to India capital market, consider the following statements
1) CRISIL was set up in the Eighth Five Year Plan
2) CRISIL rates the debt instruments of the public sectors.
Which of the statements given above is/are correct ? Show Answer

Q198) Consider the following statements
1) Housing Development Finance Corporation Limited (HDFC) is a National Level Housing Finance institution set up in 1977.
2) HDFC was established as a subsidiary company of the ICICI
Which of the statements given above is/are correct / Show Answer

Q199) Which of the statements given above is/are correct ? Show Answer

Q200) Which of following item or items is/are not covered under the revenue budget ?
1) Different proceeds of taxes and other duties levied by the government.
2) Interest and dividend on investments made by the government
3) Expenditure on running of government and various services.
4) Market loans raised by the government
Select the correct answer using the codes given below Show Answer

Q201) MODVAT is related to Show Answer

Q202) Consider the following statements, which are related to Money Market:
1. Treasury Bill are instrument of money market issued by Government of India, to fulfill its short term liquidity requirement.
2. Treasury Bills are instrument of money market issued by RBI,to fulfill the short term liquidity requirement.
3. Certificates of deposit are used by the banks and issued foe specified period less than one year.They are negotiable and trade able in money market.
4. Commercial papers are issued by banks, to generate credit facility mechanism
Which of the statements given above is/are correct? Show Answer

Q203) Consider the following reasons of why India became a regular member of Financial Action Task Force?
1. It will help India to build the capacity to fight terrorism and trace terrorist money.
2. It will help India to successfully investigate and prosecute money laundering and terrorist financing offenses.
3. It will help India to have a greater access to the international grants and aids.
Which among the above is/are correct? Show Answer

Q204) As per the latest report, what is the ranking of India on the Global Hunger Index 2013? Show Answer

Q205) Who among the following is the Chairman of the committee on Comprehensive Financial Services for Small Business and Low-income households? Show Answer

Q206) Consider the following:
1. Defective taxation system
2. Liberal economic policy
3. Weak deterrence against corruption
Which of these are causes of generation of black money? Show Answer

Q207) The banks are required to maintain a certain ratio between specified liquid assets and total assets. This is called
1. Statutory Bank Ratio (SBR)
2. Statutory Liquid Ratio (SLR)
3. Central Bank Reserve (CBR)
4. Central Liquid Reserve (CLR)
Select the answer from the codes given below: Show Answer

Q208) Consider the following statements about Interest Rate Derivatives (IRDs):
1. IRDs are the derivatives with the underlying asset as the long-term government securities held by commercial banks in India.
2. IRDs are traded on Stock Exchanges.
Which of the above statement(s) is/are correct? Show Answer

Q209) Which of the following is/are NOT correctly matched?
1. Black Money : Unaccounted - money
2. Parallel Economy : Circulation of - black money
3. Money Laundering : Transfer of - black money
4. Hawala : Transfer of funds - through llegal channels
Select the answer from the codes given below: Show Answer

Q210) Devaluation of currency leads to
1. fall in domestic prices.
2. increase in domestic prices.
3. no impact on domestic prices.
4. erratic fluctuations in domestic prices.
The correct statement(s) is/are made with: Show Answer

Q211) Which of the following are some important pollutants released by steel industry in India?
1. Oxides of sulphur
2. Oxides of nitrogen
3. Carbon monoxide
4. Carbon dioxide
Select the correct answer using the code given below.
Show Answer

Q212) The sales tax you pay while purchasing a toothpaste is a Show Answer

Q213) The terms `Marginal Standing Facility Rate’ and `Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to Show Answer

Q214) What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?
1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.
Select the correct answer using the code given below. Show Answer

Q215) The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term?
1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
2. It is an effort to increase RBI's control over commercial banks through computerization.
3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
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Q216) The establishment of 'Payment Banks' is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?
1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
2. Payment Banks can issue both credit cards and debit cards.
3. Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below. Show Answer

Q217) In India, rural incomes are generally lower than the urban incomes, which of the following reasons account for this?
1. Prices of primary products are lower than those of manufactured products
2. Investment in agriculture has been low when compared to investment in industry
Select the answer from the codes given below: Show Answer

Q218) The formula C+ I + G + (X – M) is used in measuring national income. With which of the following methods in measuring national income? Show Answer

Q219) Consider the following statement with regard to gross domestic product-
1. GDP at factor cost is the sum of net value added by all producers within the country
2. GDP at market price includes indirect taxes and excludes subsidies by the government.
3. Nominal GDP is the market value of goods and services produced in an economy, adjusted for inflation to reflect changes in real output
4. GDP deflator is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100.
Which of the above statements is/ are not true? Show Answer

Q220) Identify the measure economic concept related to inflation from the description given below-
1. It is a measure of price inflation.
2. It is calculated by computing the ratio of nominal GDP to the real measure of GDP.
3. It is a measure of the level of prices of all new, domestically produced, final goods and services in an economy
Which of the above statements is/ are not true? Show Answer

Q221) GDP at factor cost is the sum of net value added by all producers within the country but it does not include Show Answer

Q222) Consider the following statements-
1. Demutualisation is the process through which any member-owned organisation becomes a shareholder-owned company- either listed on a stock exchange or closely held by its shareholders.
2. In India, demutualisation relates more to the stock exchanges than to insurance companies.
The correct statement(s) is/are made with: Show Answer

Q223) Tax buoyancy is a measure of the responsiveness of tax receipts with respect to GDP or national income. A tax is buoyant when revenues increase by
1. more than 1% for a 1% increase in GDP.
2. less than 1% for a 1% increase in GDP.
3. more than 1% for a 1% decrease in GDP.
4. less than 1% for a 1% decrease in GDP.
The correct statement(s) is/are made with:
Show Answer

Q224) Near money is that financial asset which can be easily converted to cash without any loss of time and value. Consider the following points included in near money:
1. Shares of a company
2. Demand Draft
3. Gold 4. Cheque
Select the correct point(s) on the basis of codes given below: Show Answer

Q225) Consider the following statements regarding Food Security Law:
1. It provides for monthly quota of coarse grains, wheat and rice for Re. 1, Rs.. 2 and Rs. 3 per kg respectively.
2. Each person would be entitled to 5 kg of foodgrain per month.
The correct statement(s) of the above is / are:
Show Answer

Q226) Banks use their deposits for:
1. advancing credit in governmental and other securities.
2. making investment in governmental and other securities.
The correct statement(s) is made with: Show Answer

Q227) The contractionary policy of RBI seeks to reduce the money supply in the economy. Consider the following statements about this policy of RBI:
1. This policy is adopted to control inflation.
2. The RBI increases the CRR and SLR.
3. The RBI reduces Repo and Reverse Repo Rate.
Select the correct statement(s) on the basis of codes given below: Show Answer

Q228) Consider the following services provided by the Development Financial Institutions:
1. Providing medium and long-term loans
2. Refinancing provisions
3. Guarantee against loan
4. Underwriting
5. Subscription to shares and debenture to provide funds to firms
6. Providing technical assistance to firms
Select the correct services on the basis of codes given below: Show Answer

Q229) In 1969, the Government of India nationalized various banks. Consider the following objectives of nationalization:
1. To promote savings
2. To expand bank branches and financial inclusion
3. To reduce inequality
4. To provide social orientation to the banking industry
Select the correct objective(s) on the basis of codes given below: Show Answer

Q230) From the following statements choose the one(s) which is / are the pillar(s) of the Basel Norms:
1. Capital Adequacy
2. Supervisory Review
3. Market Discipline
Select the correct answer on the basis of codes given below: Show Answer

Q231) What is Unit System in Banking ?
1. It is a single Bank without any branch.
2. It is popular in India.
The correct statement(s) is/ are- Show Answer

Q232) Since independence, both development and non-development expenditures have increased. Which of the following falls under non-development expenditure?
1. Interest payments
2. Subsidies
3. Defence
4. Irrigation
Select the answer from the codes given below: Show Answer

Q233) Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfer is/are
1. tax sharing
2. grant-in-aids
3. loans
Select the answer from the codes given below: Show Answer

Q234) Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfer is/are
1. tax sharing
2. grant-in-aids
3. loans
Select the answer from the codes given below: Show Answer

Q235) Excise duty is a tax levied on the
1. import of goods.
2. export of goods.
3. production of goods.
4. sale of goods.
The correct statement(s) is/are made with- Show Answer

Q236) Revenue of the state governments are raised from the following sources, except
1. entertainment tax.
2. expenditure tax.
3. agricultural income tax.
4. land revenue.
The correct statement(s) is/are made with- Show Answer

Q237) Financial savings in an economy take the form of
1. Bank deposits
2. Life insurance funds
3. Pension and provident funds
4. Shares and debentures
The correct statement(s) is/are made with: Show Answer

Q238) The banks are required to maintain a certain ratio between specified liquid assets and total assets. This is called
1. Statutory Bank Ratio (SBR)
2. Statutory Liquid Ratio (SLR)
3. Central Bank Reserve (CBR)
4. Central Liquid Reserve (CLR)
Select the answer from the codes given below: Show Answer

Q239) Devaluation of currency leads to
1. fall in domestic prices.
2. increase in domestic prices.
3. no impact on domestic prices.
4. erratic fluctuations in domestic prices.
The correct statement(s) is/are made with: Show Answer

Q240) Assertion (A): Devaluation of a currency may promote exports.
Reason (R): Price of the country's products in terms of the domestic currency may fall due to devaluation.
Select the answer from the codes given below: Show Answer

Q241) Assertion (A): Devaluation can correct the imbalance in the balance of trade.
Reason (R): Devaluation may increase the general price level in the home economy.
Select the answer from the codes given below: Show Answer

Q242) Assertion (A): India's growth has been basically a services led growth of the economy.
Reason (R): The immediate challenge for our services sector covering myriad activities and areas is growth revival.
Select the answer from the codes given below: Show Answer

Q243) Assertion - Corporate and bank balance sheets remain stressed affecting the prospects for reviving private investments.
Reason- The Indian economy is not realizing its full potential.
Select the correct answer using the code given below. Show Answer

Q244) Financial savings in an economy take the form of
1. Bank deposits
2. Life insurance funds
3. Pension and provident funds
4. Shares and debentures
The correct statement(s) is/are made with: Show Answer

Q245) Since independence, both development and non-development expenditures have increased. Which of the following falls under non-development expenditure?
1. Interest payments
2. Subsidies
3. Defence
4. Irrigation
Select the answer from the codes given below: Show Answer

Q246) What is Unit System in Banking ?
1. It is a single Bank without any branch.
2. It is popular in India.
The correct statement(s) is/ are- Show Answer

Q247) Inflation is the persistent increase in the average price of commodities. Consider the following factors which would increase inflation:
1. Deficit financing and increase in budgetary deficits
2. Decrease in direct taxes
3. Decrease in indirect taxes
4. Increase in Black money in the economy
5. Defective supply chain
Select the correct factor(s) on the basis of codes given below: Show Answer

Q248) From the following statements choose the one(s) which is / are the pillar(s) of the Basel Norms:
1. Capital Adequacy
2. Supervisory Review
3. Market Discipline
Select the correct answer on the basis of codes given below: Show Answer

Q249) In 1969, the Government of India nationalized various banks. Consider the following objectives of nationalization:
1. To promote savings
2. To expand bank branches and financial inclusion
3. To reduce inequality
4. To provide social orientation to the banking industry
Select the correct objective(s) on the basis of codes given below: Show Answer

Q250) Consider the following statements-
1. Make in India and Ease of doing business in India focus on more and faster industrial growth
2. Startup India aims at nurturing an entrepreneurial mind set among youth in an in inclusive manner.
Select the correct answer using the codes given below: Show Answer

Q251) Assertion-The services sector in India has remained the most vibrant sector in terms of contribution to national and state incomes, trade flows, FDI inflows, and employment.
Reason-the services sector contributed almost 66.1% of its gross value added growth in 2015-16 becoming the important net foreign exchange earner and the most attractive sector for FDI (Foreign Direct Investment) inflows.
Select the answer from the codes given below: Show Answer

Q252) Consider the following services provided by the Development Financial Institutions:
1. Providing medium and long-term loans
2. Refinancing provisions
3. Guarantee against loan
4. Underwriting
5. Subscription to shares and debenture to provide funds to firms
Providing technical assistance to firms
Select the correct services on the basis of codes given below: Show Answer

Q253) Which of the following statements is /are true-
1. General anti-avoidance rule (GAAR) is an anti-tax avoidance regulation of India.
2. GAAR usually consists of a set of broad rules which are based on general principles to check the potential avoidance of the tax in general, in a form which cannot be predicted and thus cannot be provided at the time when it is legislated.
3. GAAR is a concept which generally empowers the Revenue Authorities in a country to deny the tax benefits of transactions or arrangments which do not have any commercial substance or consideration other than achieving the tax benefit.
4. Whenever revenue authorities question such transactions, there is a conflict with the tax payers. Thus, different countries started making rules so that tax cannot be avoided by such transactions.
Select the answer from the codes given below: Show Answer

Q254) As per banking principle there are four methods of note issue. India adopted which system of note issue. Show Answer

Q255) Assertion-Non-banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system.
Reason-It is an heterogeneous group of institutions performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase.
Select the answer from the codes given below: Show Answer

Q256) Which of the following has hailed India as a ‘bright spot’, amidst a slowing global economy? Show Answer

Q257) Assertion-Sluggish growth and increasing indebtedness in some sectors of the economy have impacted the assets quality of banks
Reason-Increasing levels of gross Non Performing Assets (NPA) have reduced the banking sector’s capacity to lend.
Select the answer from the codes given below: Show Answer

Q258) What is Unit System in Banking ?
1. It is a single Bank without any branch.
2. It is popular in India.
The correct statement(s) is/ are- Show Answer

Q259) In 1969, the Government of India nationalized various banks. Consider the following objectives of nationalization:
1. To promote savings
2. To expand bank branches and financial inclusion
3. To reduce inequality
4. To provide social orientation to the banking industry
Select the correct objective(s) on the basis of codes given below: Show Answer

Q260) Consider the following services provided by the Development Financial Institutions:
1. Providing medium and long-term loans
2. Refinancing provisions
3. Guarantee against loan
4. Underwriting
5. Subscription to shares and debenture to provide funds to firms Providing technical assistance to firms
Select the correct services on the basis of codes given below: Show Answer

Q261) The contractionary policy of RBI seeks to reduce the money supply in the economy. Consider the following statements about this policy of RBI:
1. This policy is adopted to control inflation.
2. The RBI increases the CRR and SLR.
3. The RBI reduces Repo and Reverse Repo Rate.
Select the correct statement(s) on the basis of codes given below: Show Answer

Q262) Banks use their deposits for:
1. advancing credit in governmental and other securities.
2. making investment in governmental and other securities.
The correct statement(s) is made with: Show Answer

Q263) Near money is that financial asset which can be easily converted to cash without any loss of time and value. Consider the following points included in near money:
1. Shares of a company
2. Demand Draft
3. Gold
4. Cheque
Select the correct point(s) on the basis of codes given below: Show Answer

Q264) Tax buoyancy is a measure of the responsiveness of tax receipts with respect to GDP or national income. A tax is buoyant when revenues increase by
1. more than 1% for a 1% increase in GDP.
2. less than 1% for a 1% increase in GDP.
3. more than 1% for a 1% decrease in GDP.
4. less than 1% for a 1% decrease in GDP.
The correct statement(s) is/are made with: Show Answer

Q265) Assertion-Inflation is the rate at which the general level of prices for goods and services rises
Reason-As goods and services require more money to purchase, the implicit value of that money also rises
Select the answer from the codes given below: Show Answer

Q266) Cost - push inflation occurs owing to
1. rising wages
2. increases in corporate taxes
3. imported inflation
Select the correct answer using the codes given below: Show Answer

Q267) On the front of inflation which of the following defines base effect best?
Show Answer

Q268) Consider the link between money supply and interest rate affecting each other?
1. All else being equal, a larger money supply lowers market interest rates.
2. smaller money supplies tend to raise market interest rates.
Which of the above –mentioned statements is true? Show Answer

Q269) Which of the following is not correct about deflation ? Show Answer

Q270) Assertion-High rate of inflation will make the country’s exports less competitive in the international market and have a negative effect on the balance of trade.
Reason-It will affect the external value of money or the exchange rate of the country.
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Q271) Assertion -High inflation may lead to higher interest rates for businesses and people needing loans and mortgages
Reason- Financial markets protect themselves against rising prices and increase the cost of borrowing on short and longer-term debt.
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Q272) In context of effects of inflation consider the following
1. Inflation motivates producers decrease production profits.
2. Inflation widens the gap between rich and poor.
3. Inflation will cause the prices of the goods and services to go up.
Select the correct answer using the codes given below: Show Answer

Q273) Who among the following is/are not the gainers in rising Inflation?
1. Wage earners
2. Pensioners
3. Bondholders
4. Businessmen
5. Farmer
6. Governments
7. Debtors
Select the answer using the codex given below Show Answer

Q274) Who among the following is/are not losers in rising Inflation?
1. Creditors
2. Pensioners
3. Bondholders
4. Businessmen
5. Farmer
Select the correct answer using the codes given below: Show Answer

Q275) Who among the following is/are not losers in rising Inflation?
1. Creditors
2. Pensioners
3. Bondholders
4. Businessmen
5. Farmer
Select the correct answer using the codes given below: Show Answer

Q276) Consider the statements about the devaluation of currency-
1. If there is a devaluation in the currency, the price of importing goods increases and therefore the quantity demanded of imports falls.
2. Devaluation makes domestic goods relatively cheaper, and foreign imports more expensive.
Select the correct answer using the codes given below: Show Answer

Q277) Consider the following statements with regard to current account and capital account convertibility of currency:
1. A currency may be convertible on current account (that is, exports and imports of merchandise and invisibles) only.
2. A currency may be convertible on both current and capital accounts.
Select the correct answer using the codes given below: Show Answer

Q278) Capital convertibility makes foreign exchange rate more Show Answer

Q279) As a part of new economic reforms initiated in 1991 rupee was made partly convertible from March 1992 under the “Liberalised Exchange Rate Management scheme. Under the scheme
1. 60 per cent of all receipts on current account (i.e., merchandise exports and invisible receipts) could be converted freely into rupees at market determined exchange rate quoted by authorised dealers,
2. 40 per cent of them was to be surrendered to Reserve Bank of India at the officially fixed exchange rate.
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Q280) Assertion- currency convertibility encourages exports by increasing their profitability.
Reason- market foreign exchange rate is higher than the previous officially fixed exchange rate.
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Q281) In India, Foreign Exchange Reserves are the foreign assets held or controlled by the country central bank. Consider the following in this regard-
1. The reserves are made of gold or a specific currency.
2. RBI owns foreign exchanges reserves, mostly in dollars.
3. Some of the other reserve are Special Drawing Rights (SDRs)
Select the correct answer using the codes given below: Show Answer

Q282) Consider the following statements on currency devaluation.
1. devaluation makes a country's exports relatively less expensive for foreigners
2. It help to reduce a country's trade deficit.
Select the correct answer using the codes given below: Show Answer

Q283) Consider the following statements about Public Corporation
1. It is a continuation of public ownership, public accountability and business management for public ends.
2. It is clothed with the powers of the government but possessed of the flexibility and initiative of private enterprise.
3. It is created by a special stature of a state or central government.
4. It is a separate legal entity created for a specific purpose.
Which of the above statements is/ are not true ? Show Answer

Q284) Which of the following statement is not correct regarding Liquid Asset is not correct? Show Answer

Q285) Assertion - Monetarism, maintains that the money supply (the total amount of money in an economy) is the chief determinant of current dollar GDP in the short run and the price level over longer periods.
Reason-Monetary policy is one of the tools governments have to affect the overall performance of the economy
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Q286) Who among the following is regarded as prominent monetarist thinker ? Show Answer

Q287) Consider the following statements with reference to Purchasing Power Parity'
1. It is used worldwide to compare the income levels in different countries.
2. It aims to determine the adjustments needed to be made in the exchange rates of two currencies to make them at par with the purchasing power of each other
Select the correct answer using the codes given below: Show Answer