1

The money multiplier in an economy increases with which one of the following?

2

With reference to India, consider the following statements: (1) Retail investors through demat account can invest in ?Treasury Bills? and ?Government of India Debt Bonds? in primary market. (2) The ?Negotiated Dealing System Order Matching? is a government securities trading platform of the Reserve Bank of India. (3) The ?Central Depository Services Ltd.? Is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?

3

If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

4

Indian Government Bond Yields are influenced by which of the following? (1) Actions of the United States Federal Reserve (2) Actions of the Reserve Bank of India (3) Inflation and short-term interest rates Select the correct answer using the code given below:

5

Consider the following statements: (1) The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. (2) Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest. (3) The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct?

6

With reference to the Indian economy, consider the following statements:
1. �Commercial Paper� is a short-term unsecured promissory note.
2. �Certificate of Deposit� is a long-term instrument issued by the Reserve Bank of India
to a corporation.
3. �Call Money� is a short-term finance used for interbank transactions.
4. �Zero-Coupon Bonds� are the interest bearing short-term bonds issued by the
Scheduled Commercial Banks to corporations.
Which of the statements given above is/are correct?

7

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:

8

In the context of the Indian economy, non-financial debt includes which of the following?
1. Housing loans owed by households.
2. Amounts outstanding on credit cards
3. Treasury bills
Select the correct answer using the code given below:

9

What is the importance of the term �Interest Coverage Ratio� of a firm in India?
1. It helps in understanding the present risk of a firm that a bank is going to give loan to.
2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
3. The higher a borrowing firm�s level of Interest Coverage Ratio, the worse is its ability
to service its debt.
Select the correct answer using the code given below:

10

With reference to ?Urban Cooperative Banks? in India, consider the following statements: (1) They are supervised and regulated by local boards set up by the State Governments. (2) They can issue equity shares and preference shares. (3) They were brought under the purview of the Banking Regulation Act, 1949 trough an Amendment in 1966. Which of the statements given above is/are correct?

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