Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy
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(4) Monetary policy Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the Reserve Bank of India controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
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Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

Last Answer : Monetary policy

The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy

Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy

Last Answer : (1) Monetary policy Explanation: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as ... CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.

The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy

Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy 

Last Answer : Monetary policy

The policy that deals with the tax and expenditure policies of the Government is called – (1) Monetary Policy (2) Fiscal Policy (3) Credit Policy (4) Budgetary Policy

Description : The policy that deals with the tax and expenditure policies of the Government is called – (1) Monetary Policy (2) Fiscal Policy (3) Credit Policy (4) Budgetary Policy

Last Answer : (2) Fiscal Policy Explanation: In economics and political science, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The ... are government taxation and changes in the level and composition of taxation and government spending.

The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as: A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Description : The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic ... A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Last Answer : B. Monetary Policy Explanation: Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Fiscal policy is called as ______ policy. A. monetary. B. budgetary. C. industrial. D. economic.

Description : Fiscal policy is called as ______ policy. A. monetary. B. budgetary. C. industrial. D. economic.

Last Answer : B. budgetary.

Which among the following is not the instrument of monetary policy A. Deficit financing B. Statutory liquidity Ratio C. Cash reserve ratio D. Open market operation

Description : Which among the following is not the instrument of monetary policy A. Deficit financing B. Statutory liquidity Ratio C. Cash reserve ratio D. Open market operation

Last Answer : A. Deficit financing

Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Description : Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Last Answer : (2) Foreign Trade Policy Explanation: Custom duty is a tax on imports imposed on an ad valorem basis, i.e, fixed in the form of a percentage on the value of the commodity imported.

The 'Interest Rate Policy' is a component of - (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Description : The 'Interest Rate Policy' is a component of - (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Last Answer : (2) Monetary Policy Explanation: Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the ... . Monetary authorities in different nations have differing levels of control of economy-wide interest rates.

Custom duty is an instrument of (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Description : Custom duty is an instrument of (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy

Last Answer : Foreign Trade Policy

The ‘Interest Rate Policy’ is a component of (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Description : The ‘Interest Rate Policy’ is a component of (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

Last Answer : Monetary Policy

Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy

Description : Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy

Last Answer : (2) Fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure.

Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Description : Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Last Answer : (3) fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments ... financing in India means the expenditure which in excess of current revenue and public borrowing.

Taxation is a tool of (1) Monetary policy (2) Fiscal policy (3) Price policy (4) Wage policy

Description : Taxation is a tool of (1) Monetary policy (2) Fiscal policy (3) Price policy (4) Wage policy

Last Answer : Fiscal policy

Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Last Answer : fiscal policy

The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Description : The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Last Answer : (3) Reserve Bank of India Explanation: Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India

Description : The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India 

Last Answer :  Reserve Bank of India

"Economics is what it ought to be" - This statement refers to - (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Description : "Economics is what it ought to be" - This statement refers to - (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Last Answer : (1) Normative economics Explanation: Normative economics (as opposed to positive economics) is that part of economics that expresses value judgments (normative judgments) about economic fairness or what the ... statement would be, "We should cut taxes in half to increase disposable income levels".

“Economics is what it ought to be” - This statement refers to (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Description : “Economics is what it ought to be” - This statement refers to (1) Normative economics (2) Positive economics (3) Monetary economics (4) Fiscal economics

Last Answer : Normative economics

When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called _______ A. Income Deficit B. Fiscal Deficit C. Budgetary Deficit D. None of the Above

Description : When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called _______ A. Income Deficit B. Fiscal Deficit C. Budgetary Deficit D. None of the Above

Last Answer : C. Budgetary Deficit Explanation: A budget deficit occurs whenever a government spends more than it makes, which is nearly every year.Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.

Reserve Bank announced the cap under Market Stabilisation Scheme (MSS) which has been fixed at Rs 30,000 crore for the current fiscal. MSS was launched in the year A) 2001 B) 2006 C) 2005 D) 2004 E) None of these

Description : Reserve Bank announced the cap under Market Stabilisation Scheme (MSS) which has been fixed at Rs 30,000 crore for the current fiscal. MSS was launched in the year A) 2001 B) 2006 C) 2005 D) 2004 E) None of these

Last Answer : D) 2004 Explanation: The scheme was launched in 2004.Under this scheme securities are issued with the objective of providing the RBI with a stock of securities with which it can intervene in the market for managing liquidity. These securities are issued not to meet the government‘s expenditure.

What monetary policy strategy of the federal reserve do these headlines reflect?

Description : What monetary policy strategy of the federal reserve do these headlines reflect?

Last Answer : Encouraging business growth by putting more money into circulation

8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased? a. $100 b. $1,000 c. $5,000 d. $10,000

Description : 8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased? a. $100 b. $1,000 c. $5,000 d. $10,000

Last Answer : d. $10,000

The deliberate action of the government to stabilize the economy, as opposed to the inherent automatic stabilizing properties of the fiscal system, is known as a) Forced fiscal policy b) Manual fiscal policy c) Discretionary fiscal policy d) Automatic fiscal policy

Description : The deliberate action of the government to stabilize the economy, as opposed to the inherent automatic stabilizing properties of the fiscal system, is known as a) Forced fiscal policy b) Manual fiscal policy c) Discretionary fiscal policy d) Automatic fiscal policy

Last Answer : c) Discretionary fiscal policy

The idea that government's fiscal policy can be used to stabilize the level of output and employment can be attributed to which of the following economists: a) Frederich Hayek b) Ludwig von Mises c) Frederic Bastiat d) John Maynard Keynes

Description : The idea that government's fiscal policy can be used to stabilize the level of output and employment can be attributed to which of the following economists: a) Frederich Hayek b) Ludwig von Mises c) Frederic Bastiat d) John Maynard Keynes

Last Answer : d) John Maynard Keynes John Maynard Keynes's 1936 book, 'The General Theory of Employment, Interest, and Money' laid the foundations for Macroeconomics

Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Description : Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Last Answer : (b) Change in tax rate

If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer : (1) lower cash reserve ratio Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to ... the amount of Bank deposits and they will lend more as they have more amount as their reserve.

The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Description : The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Last Answer : (1) greater Explanation: Cash Reserve Ratio is a regulation set by Central bank (RBI in India) which dictates the minimum amount (reserves) (hata commercial bank must be held to customer notes and deposits ... banks to hold a lesser proportion of (heir deposits in the form of deposits with the RBI.

The ratio of a bank's cash holdings to its total deposit liabilities is called the - (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Description : The ratio of a bank's cash holdings to its total deposit liabilities is called the - (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Last Answer : (2) Cash Reserve Ratio Explanation: Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the avail-able amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.

What is the Cash Reserve Ratio (CRR)? a) the fraction of the deposits that commercial banks lend to the customers b) the fraction of the deposits that RBI must keep with commercial banks c) the fraction of the deposits that commercial banks must keep with RBI d) none of the above

Description : What is the Cash Reserve Ratio (CRR)? a) the fraction of the deposits that commercial banks lend to the customers b) the fraction of the deposits that RBI must keep with commercial banks c) the fraction of the deposits that commercial banks must keep with RBI d) none of the above

Last Answer : c) the fraction of the deposits that commercial banks must keep with RBI

If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer :  lower cash reserve ratio

The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Description :  The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Last Answer : greater

The ratio of a bank’s cash holdings to its total deposit liabilities is called the (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Description : The ratio of a bank’s cash holdings to its total deposit liabilities is called the (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

Last Answer : Cash Reserve Ratio

Scheduled banks are required to keep cash reserve with RBI, interms of _______ A. Section 24 of the Banking Regulation Act, 1949 B. Section 20 of the Banking Regulation Act, 1949 C. Section 42(i) of the RBI Act, 1934 D. Section 42 of Negotiable Instruments Act

Description : Scheduled banks are required to keep cash reserve with RBI, interms of _______ A. Section 24 of the Banking Regulation Act, 1949 B. Section 20 of the Banking Regulation Act, 1949 C. Section 42(i) of the RBI Act, 1934 D. Section 42 of Negotiable Instruments Act

Last Answer : C. Section 42(i) of the RBI Act, 1934 Explanation: Every bank included in the Second Schedule shall maintain with the Bank an average daily balance the amount.

9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Description : 9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Last Answer : c. buy Treasury securities in the open market

Which of the following policies is known as Annual Policy Statement? A. Annual budget of central government B. Credit and Monetary Policy of RBI C. Foreign trade policy of DGFT D. Regulations issued by SEBI E. None of the Above

Description : Which of the following policies is known as Annual Policy Statement? A. Annual budget of central government B. Credit and Monetary Policy of RBI C. Foreign trade policy of DGFT D. Regulations issued by SEBI E. None of the Above

Last Answer : B. Credit and Monetary Policy of RBI Explanation: Credit and Monetary Policy of RBI is known as Annual Policy Statement.

The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Description : The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Last Answer : (3) Promote economic growth with price stability Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.

Which one of the following is not a function of the central bank in an economy? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker's bank

Description : Which one of the following is not a function of the central bank in an economy? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker's bank

Last Answer : (3) Controlling government spending Explanation: A central bank, reserve bank, or monetary authority is a public institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries.

The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

Description : The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy 

Last Answer : Promote economic growth with price stability

Which one of the following is not a function of the central bank in an economy ? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker’s bank

Description : Which one of the following is not a function of the central bank in an economy ? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker’s bank

Last Answer : Controlling government spending

he annual record for all the monetary transactions of a country with other countries of the world is known as - (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet

Description : he annual record for all the monetary transactions of a country with other countries of the world is known as - (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet

Last Answer : (3) Balance of payments Explanation: Balance of payments (BoP) accounts arc an accounting record of all monetary transactions between a country and the rest of the world. These transactions include ... and are prepared in a single currency, typically the domestic currency for the country concerned.

The annual record for all the monetary transactions of a country with other countries of the world is known as (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet

Description : The annual record for all the monetary transactions of a country with other countries of the world is known as (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet

Last Answer : Balance of payments

Open market operations of RBI refer to buying and selling of - (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Description : Open market operations of RBI refer to buying and selling of - (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : (4) Government bonds Explanation: OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to ... are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization

Description : Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization

Last Answer : (3) Purchase and sale of Government securities by RBI Explanation: Open Market Operation (OMO) refers to the buying and selling of government securities in the open market in order to expand or ... in the banking system. A central bank uses OMO as the primary means of implementing monetary policy.

Open market operations of RBI refer to buying and selling of (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Description : Open market operations of RBI refer to buying and selling of (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : Government bonds

Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation

Description : Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation

Last Answer : Purchase and sale of Government securities by RBI

When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________ A. Revenue Deficit B. Budgetary Deficit C. Zero Budgeting D. Trade Gap E. Balance of Payment Problem

Description : When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________ A. Revenue Deficit B. Budgetary Deficit C. Zero Budgeting D. Trade Gap E. Balance of Payment Problem

Last Answer : B. Budgetary Deficit Explanation: Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government ... leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.

The European Union is an example of ______. A. monetary union. B. free trade area. C. common market. D. economic union.

Description : The European Union is an example of ______. A. monetary union. B. free trade area. C. common market. D. economic union.

Last Answer : D. economic union.

Recommendations to the President of India on the specific Union state fiscal relation are made by the- (1) Finance Minister (2) Reserve Bank of India (3) Planning Commission (4) Finance Commission

Description : Recommendations to the President of India on the specific Union state fiscal relation are made by the- (1) Finance Minister (2) Reserve Bank of India (3) Planning Commission (4) Finance Commission

Last Answer : (4) Finance Commission Explanation: The finance commission made recommendations to the president of India on the specific union state fiscal relation.

4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy-making body is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Last Answer : a. it is a system of 12 central banks