MCQ for economy-2

Consider the following statements:

1. Money market instruments can be used to take short term loans by the banks, government and corporate entities.

2. All government securities are money market instruments.

Which of the statements given above is/are correct?

Consider the following statements with reference to Repo and Reverse Repo Market:

1. Both Repo and Reverse Repo markets are parts of Money Market.

2. Banks can take loans from RBI under Repo Market by repurchasing the commercial bills at higher price.

3. Banks can earn interest by parking their surplus with RBI under Reverse Repo Market.

4. Repo Rate is higher than Reverse Repo Rate.

Which of the statements given above are correct?

Which of the following rates is/are not determined by the Reserve bank of India?

1. Call Money Rate

2. Prime Lending Rate

3. Base Rate

4. Bank Rate

Select the correct answer using the codes given below:

Which of the following is/are Money Market Instruments?

1. Commercial Bills

2. Certificates of Deposit

3. Commercial Papers

4. Notice Money

Select the correct answer using the codes given below:

RBI uses its “Liquidity Adjustment Facility” to bring about changes in

1. CRR and SLR

2. Repo and Reverse Repo Rates

3. Bank Rate

Select the correct answer from the codes given below:

In India National Income is measured by

Although India has a high saving rate but capital formations may not result in significant increase in output due to:

Consider the following pairs:

Which of the pairs given above are correctly matched?

Consider the following statements:

1. Gross domestic product (GDP) can be higher than Gross National product (GNP).

2. Net domestic product (NDP) can be higher than Gross domestic product (GDP).

Which of the statements given above is/are not correct?

Which of the following statement is not correct with reference to GDP?