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?
Prelims
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Economics › Finance/Capital Market
Economics › Finance/Capital Market
Options
Answer
(C)
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Economics › Inflation
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Economics › RBIXLiquidity Management
Economics › RBIXLiquidity Management
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
(a) to reduce it by Rs. 1,00,000
(b) to increase it by Rs. 1,00,000
(c) to increase it by more than Rs. 1,00,000
(d) to leave it unchangedOptions
Answer
(D)
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Economics › RBIXLiquidity Management
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:Options
Answer
(C)
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Economics › Trade
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Environment › Biofertilizers/Fuels
Environment › Biofertilizers/Fuels
According to India’s National Policy on Biofuels, which of the following can be used as
raw materials for the production of biofuels?
1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet
Select the correct answer using the code given below:Options
Answer
(A)
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Environment › Climate Change