1. An increase in the Bank Rate generally indicates that the 
  1. Market rate of interest is likely to fall
  2. Central Bank is no longer making loans to commercial banks
  3. Central Bank is following an easy money policy
  4. Central Bank is following a tight money policy

2. The Reserve 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.
  1. 1 and 4 only
  2. 2, 3 and 4 only
  3. 1, 2 and 3 only
  4. 1, 2, 3 and 4

3. Which of the following grants/ grant direct credit assistance to rural households?
  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks
Select the correct answer using the codes given below:
  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3

4. Consider the following liquid assets:

  1. Demand deposits with the banks
  2. Time deposits with the banks
  3. Savings deposits with the banks
  4. Currency
The correct sequence of these decreasing order of Liquidity is
  1. 1-4-3-2
  2. 4-3-2-1
  3. 2-3-1-4
  4. 4-1-3-2

5. In the context of Indian economy, Open Market Operations refers to
  1. borrowing by scheduled banks from the RBI
  2. lending by commercial banks to industry and trade
  3. purchase and sale of government securities by the RBI
  4. None of the above

6. Priority Sector Lending by banks in India constitutes the lending to
  1. Agriculture
  2. Micro and small enterprises
  3. Weaker sections
  4. All of the above

7. Supply of money remaining the same when there is an increase in demand for money, there will be
  1. a fall in the level of prices
  2. an increase in the rate of interest
  3. a decrease in the rate of interest
  4. an increase in the level of income and employment

8. The balance of payments of a country is a systematic record of
  1. all import and export transactions of a country during a given period of time, normally a year
  2. goods exported from a country during a year
  3. economic transaction between the government of one country to another
  4. capital movements from one country to another

9. Which of the following constitute Capital Account?

  1. Foreign Loans
  2. Foreign Direct Investment
  3. Private Remittances
  4. Portfolio Investment

10. Which one of the following groups of items is included in India’s foreign-exchange reserves?
  1. Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
  2. Foreign-currency assets, gold holdings of the RBI and SDRs
  3. Foreign-currency assets, loans from the World Bank and SDRs
  4. Foreign-currency assets, gold holdings of the RBI and loans from the World Bank