Practice Test

Q1) Repo rate is the rate at which : Show Answer

Q2) Composite loans are given for: Show Answer

Q3) In the post reforms period, the "monetary targeting approach" of the RBI was replaced by ___________ for monetary policy formulation. Show Answer

Q4) In the post reforms period, the RBI introduced _____________ to absorb liquidity of more enduring nature from the financial system. Show Answer

Q5) In the recent years, the RBI has introduced the scheme of __________ for the rural poor by linking the banking system with the self help groups. Show Answer

Q6) In the context of opening up of India economy and its increasing global integration, the monetary policy in India now recognizes _________ as the key consideration of the conduct of monetary policy. Show Answer

Q7) In the context of opening up of India economy and its increasing global integration, the monetary policy in India has now shifted_________. Show Answer

Q8) The __________ , introduced by the RBI in June 2000, allows the RBI to manage liquidity on a daily basis and also transmit interest signals to the market. Show Answer

Q9) The Market Stabilization Scheme is an arrangement between ________ to mop up the excess liquidity generated on account of large capital inflows. Show Answer

Q10) The Government of India introduced the Credit Guarantee Fund Scheme for Micro & Small Enterprises, in the year 2000, to make available _________ to them. Show Answer

Q11) Sterilization means re-cycling of foreign capital inflows to prevent appreciation of the domestic currency. Show Answer

Q12) In the recent years, RBI has failed in managing short term liquidity on account of large inflows of foreign capital Show Answer

Q13) RBI uses treasury bills and dated government securities to absorb excess liquidity from the market under Market Stabilization Scheme (MSS). Show Answer

Q14) Liquidity Adjustment Facility was introduced to manage flexible exchange Show Answer

Q15) Repo rate is the rate at which RBI absorbs liquidity from the system Show Answer

Q16) Micro finance is one of the important tools to lend agricultural credit to rich farmers. Show Answer

Q17) There is no difference between the terms micro credit and micro finance. Show Answer

Q18) Self-help groups (SHG) have not made much impact on poverty in rural India Show Answer

Q19) SHGs are the agents of empowerment of women in rural area Show Answer

Q20) Composite loans are those loans which are given to meet both working capital requirements and also the acquisition of fixed assets by a unit Show Answer

Q21) The RBI was established as a public sector bank on 1st April 1935 Show Answer

Q22) RBI Exercises its influence on the financial market through its monetary policy Show Answer

Q23) In India, RBI controls the supply of money and bank credit Show Answer

Q24) Financial stability means the ability of the economy to absorb shocks and maintain confidence in the financial system Show Answer

Q25) Quantitative methods of money control indirectly helps in employment generation Show Answer

Q26) The large number of poor population did not even have access to banking system Show Answer

Q27) The existing banking policies, procedures and systems were not suited to meet the requirements of poor Show Answer

Q28) Micro finance is a norrow concept as compared to micro credit Show Answer

Q29) Micro credit is a small amount of money, given as loan by bank Show Answer

Q30) SHGs have been traditionally supported by government agencies Show Answer