Mock Test Paper - Business Economics

Bank Rate is the rate:

• At which RBI lends to the commercial banks

• At which RBI rediscounts the bills of the commercial banks

• Both (a) and (b)

• Neither (a) nor (b)

Which of the following is NOT an instrument of monetary policy?

• Cash Reserve Ratio

• Statutory Liquidity Ratio

• Public Expenditure Management

• Repo Rate

Reverse Repo Rate is:

• Rate at which RBI borrows from commercial banks

• Rate at which RBI lends to the commercial banks

• Both (a) and (b)

• Neither (a) nor (b)

Fiscal deficit can be remedied by:

• Borrowing money

• Printing Currency

• Both (a) and (b)

• Neither (a) nor (b)

Which of the following Budget documents is mandated by Fiscal Responsibility and Budget Management Act, 2003?

• Annual Financial Statement (AFS)

• Demand for Grants

• Finance Bill

• Macro-Economic Framework Statement

Non‐Plan Grants are determined by:

• Planning Commission

• Finance Commission

• Central Government

• State Government

Public Debt Management refers to:

• Terms of new bonds

• Proportion of different components of public debt

• Maturity

• All the above

Public Expenditure increases:

• Interest rate

• Employment

• Exports

• Imports

Which of the following are the instruments of money market?

• Call money

• Certificate of deposits

• Trade bills

• All of the above

Who issues a treasury bill?

• Any nationalised bank

• Any private sector bank

• Reserve Bank of India

• All of the above