Question : The cash reserve ratio(CRR) is a tool to control the money supply through which measure I. Qualitative II. Quantitative
Option 1: Only II
Option 2: Only I
Option 3: Neither I nor II
Option 4: Both I and II
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Correct Answer: Only II
Solution : The correct answer is Only II.
A quantitative instrument for managing the money supply is the cash reserve ratio. One of the most significant elements of the RBI's monetary policy, which controls and regulates the money supply, inflation rate, and liquidity in the economy, is the CRR. To put it briefly, a high CRR indicates that the banks have less money available for lending and investment. Banks are required to hold less money with themselves and more with the RBI.
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Question : Which of the following is/are example(s) of cold-blooded animals? I. Turtles II. Snakes
Option 1: Both I and II
Option 2: Neither I nor II
Option 3: Only I
Option 4: Only II
Question : Which among the following statements is incorrect?
Option 1: An increase in the bank rate will decrease the money supply.
Option 2: The lower the Cash Reserve Ratio (CRR), the lower will be the liquidity in the system.
Option 3: The higher the Cash Reserve Ratio (CRR), the lower the liquidity in the system.
Option 4: The lower the Statutory Liquidity Ratio (SLR), the higher the liquidity in the system.
Question : Which of the following is referred to as "paper taxes"? I. Wealth tax II. Gift tax
Option 3: Both I and II
Option 4: Neither I nor II
Question : Public goods possess which of the following features in the economy? I. They are non-rivalrous. II. They are non-excludable.
Question : The President of India shall be elected by the members of an electoral college consisting of: I. The elected members of both Houses of Parliament II. The elected members of the Legislative Assemblies of the states.
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