money supply, banking & financial institutions section 9 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11

The term "SWIFT" is sometimes seen in the news, is related to:

a) It is used to securely transmit information and instructions by financial institutions

b) It is used for messaging in secret defence communication

c) It is used in space technology

d) It is used for faster transmission of data

Question : 12

The export competitiveness of a country with its trading partners can be best measured through which of the following exchange rates:

a) Real Exchange Rate

b) Nominal Effective Exchange Rate

c) Nominal Exchange Rate

d) Real Effective Exchange Rate

Question : 13 [UPPSC (Pre) 2010]

An increase in CRR by the Reserve Bank of India results in

a) reduction in liquidity in the economy

b) more flow of credit to desired sector

c) attracting more FDI in the country

d) decrease in debt of the government

Question : 14

Which of the following are instrument/s of the money market?

1. Cash management bills
2. Treasury bills
3. Certificate of Deposits
4. State Development Loans

a) (ii) & (iii) only

b) (i) & (iv) only

c) (i) & (ii) only

d) (i), (ii) & (iii) only

Question : 15

RBI is keeping the policy rate at a higher level for quite some time. Which of the following conditions may have led to such behaviour?

1. Inflation in the economy is high
2. Inflation expectation in the economy is high

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)