MCQ for economy-1

Consider the following statements:

1. With rising interest rates in the economy, bond prices also increase.

2. With higher prices of the bonds, the bond yield also rises.

Which of the statements given above is/are correct?

Which of the following is/are Money market instruments?

1. Commercial Bills

2. Corporate Bonds

3. Treasury Bills

4. Inflation Indexed Bonds

Select the correct answer using the code given below:

Which of the following are Non-Banking Financial Companies?

1. Gold Loan Companies

2. Core Investment Companies

3. Housing Finance Companies

4. Asset Reconstruction Companies

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Arrange the following instruments in ascending order of risk associated with them:

1. Bonds

2. Debentures

3. Ordinary Shares

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Consider the following statements with reference to Non-Banking Financial Companies (NBFCs):

1. They are allowed to accept demand deposits from the public.

2. They hold banking licence and provide banking services without meeting the legal definition of bank.

3. They are not allowed to provide service of extending loans and credit facilities.

Which of the statements is/are correct?

Under which of the following mechanisms can a commercial bank take short-term loans?

1. Liquidity Adjustment Facility (LAF)

2. Marginal Standing Facility (MSF)

3. Call Money Market

4. Treasury Bill Market

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Which of the following methods is best suited to infuse liquidity quickly in the economy?

Broader Liquidity Aggregates in India are includes liabilities of:

1. Banking sector

2. NBFCs

3. Share Markets

Select the correct answer from the codes given below:

Capital Adequacy Ratio of a bank refers to:

If RBI decides to keep the money supply unchanged in the economy, an increase in the demand for money is likely to: