(IGP) CSAT Paper - I : Economy - MCQ - 2

1. Bank Rate implies the rate of interest
(a) paid by the Reserve Bank of India on the deposits of commercial banks.
(b) charged by banks on loans and advances
(c) payable on bonds
(d) at which the Reserve Bank of India discounts the Bills of Exchange

2. Capital Account Convertibility of the Indian Rupee implies
(a) that the Indian Rupee can be exchanged by the authorized dealers for travel
(b) that the Indian Rupee can be exchanged for any major currency for the purpose of trade in goods and services
(c) that the Indian Rupee can be exchanged for anymajor currency for the purpose of trading financial assets
(d) none of the above

3. Consider the following.
A. Industrial Finance Corporation of India
B. Industrial Credit and Investment Corporation of India
C. Industrial Development Bank of India
D. Unit Trust of India The correct sequence in which the above were established is
(a) A, B, C, and D
(b) A, C, B, and D
(c) D, C, B and A
(d) A, D, C, and B

4. Consider the following.
A. Market borrowing
B. Treasury bills
C. Special securities issued to RBI Which of these is/are component(s) of internal debt?
(a) A only
(b) A and B
(c) B only
(d) A, B, and C

5. Consider the following.
A. Currency with the public
B. Demand deposits with banks
C. Time deposits with banks
Which of these are included in Board Money (M3) in India?
(a) A and B
(b) A and C
(c) Band C
(d) A, B, and C

Answers