Question : Deficit financing means the government borrows money from the ____.
Option 1: International Monetary Fund
Option 2: Ministry of Finance
Option 3: Reserve Bank of India
Option 4: World Trade Organisation
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Correct Answer: Reserve Bank of India
Solution : The correct answer is the Reserve Bank of India.
When the government spends more than it collects in tax money, it faces a deficit. Through RBI, the government borrows money or creates new money to make up the deficit between its spending and revenue. This is known as deficit financing. The government has the option of using its cash held in RBI for withdrawals, instructing the RBI to create fresh currency notes, or borrowing money from the general public in the form of bonds and other assets.
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Question : In India, _____fixes the Cash Reserve Ratio(CRR) for the banks in the economy.
Option 1: Reserve Bank of India
Option 3: Ministry of External Affairs
Option 4: State Bank of India
Question : The poverty line in India is based on the survey conducted by which of the following?
Option 1: Ministry of Finance
Option 2: Reserve Bank of India (RBI)
Option 3: Ministry of Rural Development
Option 4: National Statistical Office (NSO)
Question : IMF stands for:
Option 1: International Monetary Function
Option 2: International Monetary Fund
Option 3: Indian Manufacturing Firm
Option 4: Interest Minimum Firm Function
Question : ______ became the first bank to get the Reserve Bank of India's approval for rupee trade.
Option 1: SBI Bank
Option 2: Axis Bank
Option 3: UCO Bank
Option 4: ICICI Bank
Question : Which regulatory body oversees microfinance institutions in India?
Option 1: Reserve Bank of India (RBI)
Option 3: Insurance Regulatory and Development Authority of India (IRDAI)
Option 4: Securities and Exchange Board of India (SEBI)
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