6. With reference to Indian economy, consider the following 

1. Bank rate

2. Open market operations
3. Public debt

4. Public revenue
 

Which of the above is/are component/ components of Monetary Policy?





Answer & Solution

Answer:

1 and 2

7. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen? 





Answer & Solution

Answer:

Scheduled Commercial Banks may cut their lending rates

8. With reference to 'Indian Ocean Rim Association for Regional Cooperation (IOR-ARC)', consider the following statements:
1. It was established very recently in response to incidents of piracy and accidents of oil spills.
2. It is an alliance meant for maritime security only.


Which of the statements given above is / are correct?





Answer & Solution

Answer:

Neither 1 nor 2

9. With reference to inflation in India, which of the following statements is correct? 





Answer & Solution

Answer:

Decreased money circulation helps in controlling the inflation

10. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries


Select the correct answer using the code given below.





Answer & Solution

Answer:

1 and 3 only