Question : Which one of the following is not an instrument of credit control in India?
Option 1: Rationing of credit
Option 2: Direct action
Option 3: Open market operations
Option 4: Variable cost reserve ratios
Correct Answer: Variable cost reserve ratios
Solution : The correct option is Variable cost reserve ratios.
The objective of the variable reserve ratio (Cash Reserve Ratio), which is a quantitative technique, is to manage just the volume of credit, not the volume and purpose of the credit for which the bank makes loans. For these goals, both the qualitative approach and the selective control method are utilised. It has several drawbacks.
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Question : Which of the following is one of the Open Market Operations of the Reserve Bank of India?
Option 1: Buying and selling of bonds issued by the Government in the open market
Option 2: Buying and selling of bonds issued by commercial banks in the open market
Option 3: Only buying of bonds issued by the Government in the open market
Option 4: Only selling of bonds issued by the Government in the open market
Question : Which of the following cost is related to marginal cost ?
Option 1: Variable cost .
Option 2: Implicit cost
Option 3: Prime cost .
Option 4: Fixed cost .
Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Commercial bill
Question : Sextant is an instrument used in which of the following?
Option 1: Gynaecology
Option 2: Navigation
Option 3: Birth control
Option 4: Medical Treatment
Question : One of the features of a free market economy is
Option 1: active state intervention
Option 2: public ownership of factors of production
Option 3: rationing and price control
Option 4: consumer's sovereignty
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