Quiz-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
We will post 5 questions daily on static topics mentioned in the UPSC civil services preliminary examination syllabus. Each week will focus on a specific topic from the syllabus, such as History of India and Indian National Movement, Indian and World Geography, and more.
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 RBI’s Open Market Operations (OMOs).
- OMOs can be used to tame short-term inflation in the economy.
- They are to be mandatorily conducted once every year to adjust liquidity in the security markets.
- No intermediaries such as commercial banks are involved in OMOs.
How many of the above statements is/are correct?
Correct
Solution: a)
Only Statement 1 is correct.
- OMOs are conducted by the RBI by way of sale or purchase of government securities (g-secs) to adjust money supply conditions.
- RBI carries out the OMO through commercial banks and does not directly deal with the public.
- The central bank sells g-secs to suck out liquidity from the system and buys back g-secs to infuse liquidity into the system.
- These operations are often conducted on a day-to-day basis in a manner that balances inflation while helping banks continue to lend.
- The RBI uses OMO along with other monetary policy tools such as repo rate, cash reserve ratio and statutory liquidity ratio to adjust the quantum and price of money in the system.
When the RBI wants to increase the money supply in the economy, it purchases the government securities from the market and it sells government securities to suck out liquidity from the system.
Incorrect
Solution: a)
Only Statement 1 is correct.
- OMOs are conducted by the RBI by way of sale or purchase of government securities (g-secs) to adjust money supply conditions.
- RBI carries out the OMO through commercial banks and does not directly deal with the public.
- The central bank sells g-secs to suck out liquidity from the system and buys back g-secs to infuse liquidity into the system.
- These operations are often conducted on a day-to-day basis in a manner that balances inflation while helping banks continue to lend.
- The RBI uses OMO along with other monetary policy tools such as repo rate, cash reserve ratio and statutory liquidity ratio to adjust the quantum and price of money in the system.
When the RBI wants to increase the money supply in the economy, it purchases the government securities from the market and it sells government securities to suck out liquidity from the system.
-
Question 2 of 5
2. Question
Consider the following statements.
- The evergreening of loans means, banks try to revive a loan that is on the verge of default by granting further loans to the same borrower.
- RBI’s surplus transfer or Dividend to the Government constitutes tax revenue to the Government.
Which of the above statements is/are incorrect?
Correct
Solution: b)
The evergreening of loans is a term in which banks try to revive a loan that is on the verge of default by granting further loans to the same borrower.
Dividend, or surplus transfer, from the Reserve Bank of India (RBI) has become one of the biggest sources of non-tax revenues for the Centre.
Incorrect
Solution: b)
The evergreening of loans is a term in which banks try to revive a loan that is on the verge of default by granting further loans to the same borrower.
Dividend, or surplus transfer, from the Reserve Bank of India (RBI) has become one of the biggest sources of non-tax revenues for the Centre.
-
Question 3 of 5
3. Question
Which of the following factors can aid in the moderation of current account deficit(CAD) in India?
- Fall in global commodity prices
- Rising services exports from India
- Abatement of selling pressure by foreign investors in Indian market
- Rising workers remittances to India
How many of the above options is/are correct?
Correct
Solution: d)
The moderation in CAD, is aided by the fall in commodity prices, rising workers remittances and services exports, and abatement of selling pressure by foreign investors.
Incorrect
Solution: d)
The moderation in CAD, is aided by the fall in commodity prices, rising workers remittances and services exports, and abatement of selling pressure by foreign investors.
-
Question 4 of 5
4. Question
Consider the following statements.
- A K-shaped recovery is characterised by quick and effective recovery in measures of economic performance after an acute decline in the economy.
- A V-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.
Which of the above statements is/are correct?
Correct
Solution: d)
A V-shaped recovery is characterised by quick and effective recovery in measures of economic performance after an acute decline in the economy.
A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.
Incorrect
Solution: d)
A V-shaped recovery is characterised by quick and effective recovery in measures of economic performance after an acute decline in the economy.
A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.
-
Question 5 of 5
5. Question
MSCI indexes, sometimes seen in news is related to
Correct
Solution: c)
MSCI indices are tracked by investors globally, who allocate funds based on weightage given to countries and stocks.
MSCI, or Morgan Stanley Capital International, is owned by the multinational investment management and financial services company Morgan Stanley.
It is a leading provider of critical decision support tools, including stock indexes, and services for the global investment community. It has over 160,000 indexes in its portfolio.
MSCI Indexes facilitate the construction and monitoring of portfolios in a cohesive and complete manner, avoiding benchmark misfit.
Incorrect
Solution: c)
MSCI indices are tracked by investors globally, who allocate funds based on weightage given to countries and stocks.
MSCI, or Morgan Stanley Capital International, is owned by the multinational investment management and financial services company Morgan Stanley.
It is a leading provider of critical decision support tools, including stock indexes, and services for the global investment community. It has over 160,000 indexes in its portfolio.
MSCI Indexes facilitate the construction and monitoring of portfolios in a cohesive and complete manner, avoiding benchmark misfit.
Join our Official Telegram Channel HERE for Motivation and Fast Updates
Subscribe to our YouTube Channel HERE to watch Motivational and New
Join our Twitter Channel HERE
Follow our Instagram Channel HERE
Follow us on LinkedIn : HERE
