money supply, banking & financial institutions section 6 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 31

“Liquidity Coverage Ratio” is defined as a ratio of:

a) High quality liquid assets to deposits of the public in the bank

b) High quality liquid assets to net cash outflow amount over a 30 days period

c) High quality liquid assets to cash outflow for 30 days period

d) High quality liquid assets to total lending of banks

Question : 32

If an exporter earns money and deposits that with RBI, what will be the ultimate impact on country’s money supply?

a) Money supply will increase

b) Money supply will remain unaltered

c) Money supply will decrease

d) Money supply will depend upon the current exchange rate

Question : 33 [SSC Deo 2009]

Stagflation is a situation of

a) stagnation and inflation

b) stagnation and recovery

c) stagnation and deflation

d) stagnation and recession

Question : 34 [UKPCS (Pre) 2014]

Which of the following is not a function of Reserve Bank of India?

a) Regulation of foreign trade

b) Custody and management of country’s foreign exchange reserved

c) Regulation of credit

d) Regulation of currency

Question : 35

What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents?

a) Bill of Exchange

b) Letter of Credit

c) Letter of Exchange

d) Bill of Entry