SECTION-6

Economics Multiple Choice Questions

 
Q31. Consider the following statements.
1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India.
2. A value of ‘0’ for Gini Coefficient in country implies that there is perfectly equal income for everyone in its population.
Which of the statement(s) given above is/are correct?     [HPPSC (Pre) 2011]

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Ans:(C) Both 1 and 2

 

Q32. Tarapore Committee was associated with which one of the following?
[HPPSC (Pre) 2016]

(A) Special Economic Zones
(B) Full capital account convertibility
(C) Foreign exchange reserves
(D) Effect of oil prices on the Indian economy

Ans:(B) Full capital account convertibility

 

Q33. The question of full capital account convertibility of Indian was explained by the committee known as

(A) Vaghul Committee

(B) Rangarajan Committee
(C) Tarapore Committee II
(D) Hashim Committee

Ans:(C) Tarapore Committee II

 

Q34. Study the following statements with regard to Reserve Bank of India and select your answer from the codes given below.       [UPPCS (Pre) 2003]
1. It is the Apex Bank.
2. It regulates the money supply.
3. It gives loan to the business houses.
4. It supervises the operations of NABARD.
Code

(A) 1 and 2
(B) 2 and 4
(C) 1, 2 and 3
(D) 1, 2 and 4

Ans:(A) 1 and 2

 

Q35. Which among the following is a function of the Reserve Bank of India?
[HCS (Pre) 2014]

(A) Bank issues the letter of credit to their customers certifying their creditability
(B) Collecting and compilation of statistical information relating to banking and other financial sector
(C) Banks underwrite the securities issued by public or private organisations
(D) Accepting deposits from the public

Ans:(B) Collecting and compilation of statistical information relating to banking and other financial sector

 

Q36. Which of the following is not a function of Reserve Bank of India?
[UKPCS (Pre) 2014]

(A) Regulation of currency
(B) Regulation of foreign trade
(C) Regulation of credit
(D) Custody and management of country’s foreign exchange reserved

Ans:(B) Regulation of foreign trade

 

Q37. Who is the ‘lender of the last resort’ in the banking structure of India?
[HCS (Pre) 2014]

(A) State Bank of India
(B) Reserve Bank of India
(C) Exim Bank of India
(D) Union Bank of India

Ans:(B) Reserve Bank of India

 

Q38. ….. is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks.     [HCS (Pre) 2014]

(A) Repo rate
(B) Bank rate
(C) Prime lending rate
(D) Reverse repo rate

Ans:(B) Bank rate

 

Q39. The Bank rate is the rate at which       [UPPCS (Mains) 2008, 2011 BPSC (Pre) 2017 UPPCS (Pre) 2009]

(A) a bank lends to the public
(B) the RBI lends to the public
(C) the RBI gives credit to the commercial banks
(D) the Government of India lends to other countries

Ans:(C) the RBI gives credit to the commercial banks

 

Q40. Consider the following statements.
1. Bank rate is the rate of interest which RBI charges its clients on their short-term borrowing.
2. Repo rate is the rate of interest which RBI charges its clients on their long-term borrowing.
Which of the statement(s) given above is/are correct?
[Tamil Nadu PSC (Pre) 2017 BPSC (Pre) 2015]

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Ans:(D) Neither 1 nor 2

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Read More Sections of Indian Economy Objective Questions

Each section contains maximum 80 Questions. To practice more questions visit other sections.
 

 Indian Economy Objective Questions – Section-1

 

 Indian Economy Objective Questions – Section-2

 

 Indian Economy Objective Questions – Section-3

 

 Indian Economy Objective Questions – Section-4

 

 Indian Economy Objective Questions – Section-5

 

 Indian Economy Objective Questions – Section-6

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