INSIGHTS STATIC QUIZ 2020 - 21
Quiz-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
-
Question 1 of 5
1. Question
Consider the following statements regarding White Label ATM (WLA)
- Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called White Label ATMs
- Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the RBI.
- White label ATMs accept cash deposits.
Which of the above statements is/are correct?
Correct
Solution: c)
ATMs set up, owned and operated by non-banks are called White label ATMs (WLAs). Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India (RBI).
For a customer, using a WLA is just like using an ATM of any bank.
Until recently, these white label ATMs were not allowed to accept cash deposits, but the latest guidelines have now allowed these ATM operators to provide this service. They can also offer bill payment services through their ATMs.
Incorrect
Solution: c)
ATMs set up, owned and operated by non-banks are called White label ATMs (WLAs). Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India (RBI).
For a customer, using a WLA is just like using an ATM of any bank.
Until recently, these white label ATMs were not allowed to accept cash deposits, but the latest guidelines have now allowed these ATM operators to provide this service. They can also offer bill payment services through their ATMs.
-
Question 2 of 5
2. Question
Consider the following statements regarding the Marginal Standing Facility (MSF).
- MSF functions as the last resort for banks to borrow short-term funds over and above that available under the Liquidity Adjustment Facility Window (LAF).
- MSF is an extraordinary rate at which banks can borrow money from the central bank at a much cheaper rate than repo rate.
Which of the above statements is/are incorrect?
Correct
Solution: b)
Marginal Standing Facility (MSF) was announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to the penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window.
MSF, being a penal rate, is always fixed above the repo rate.
Incorrect
Solution: b)
Marginal Standing Facility (MSF) was announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to the penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window.
MSF, being a penal rate, is always fixed above the repo rate.
-
Question 3 of 5
3. Question
Inflation may result from
- A reduction in the total productive capacity of the economy even as more and more people are employed
- Oversupply of goods in the economy
Select the correct answer code:
Correct
Solution: a)
In simple terms, inflation is basically too much money chasing too few goods, or excess demand chasing limited supply. In both these cases, the prices of goods rises faster as individual consumers bid process higher in order to get the good.
Excess supply is likely to bring prices down, not high.
If income rises faster, demand for goods and services will also rise. On the other hand, if the economy is unable to satisfy the increased demand, for e.g. due to poor infrastructure, lack of production etc, the higher income will spiral the prices upwards and lead to high inflation.
Incorrect
Solution: a)
In simple terms, inflation is basically too much money chasing too few goods, or excess demand chasing limited supply. In both these cases, the prices of goods rises faster as individual consumers bid process higher in order to get the good.
Excess supply is likely to bring prices down, not high.
If income rises faster, demand for goods and services will also rise. On the other hand, if the economy is unable to satisfy the increased demand, for e.g. due to poor infrastructure, lack of production etc, the higher income will spiral the prices upwards and lead to high inflation.
-
Question 4 of 5
4. Question
Which of the following best describes ‘Anti-Dumping’ duty?
Correct
Solution: a)
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market.
Incorrect
Solution: a)
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market.
-
Question 5 of 5
5. Question
When the Reserve Bank of India increases the repo rate by 50 basis points, which of the following likely to happen?
- India’s GDP growth rate increases drastically
- Foreign Institutional Investors will bring more capital into our country
- Scheduled Commercial Banks may increase their lending rates
Select the correct answer code:
Correct
Solution: d)
Increase in repo rate by RBI would largely lead to increase in lending rates of banks.
Incorrect
Solution: d)
Increase in repo rate by RBI would largely lead to increase in lending rates of banks.