General Knowledge Quiz - Indian Economy 8

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General Knowledge Quiz on  Indian Economy 8

1. If the RBI adopts an expansionist open market operations policy, this means that it will

A. buy securities from non-government holders
B. sell securities in the open market
C. offer commercial banks more credit in the open market
D. openly announce to the market that it intends to expand credit



2. Devaluation of currency leads to

A. fall in domestic prices
B. increase in domestic prices
C. no impact on domestic prices
D. erratic fluctuations in domestic prices



3. In which of the following sequences the change in quantity of money leads to change in price level in the Keynesian models?

A. Change in quantity of money - change in investment - change in employment and output - change in rate         of interest - change in price level
B. Change in quantity of money - change in employment and output - change in investment - change in the         rate of interest - change in price level
C. Change in quantity of money - change in investment - change in rate of interest - change in employment         and output - change in price level
D. Change in quantity of money - change in rate of interest - change in investment - change in employment         and output - change in price level



4. Foreign Direct Investment ceilings in the telecom sector have been raised from 74 percent to

A. 80 percent
B. 83 percent
C. 90 percent
D. 100 percent



5.LAF is an indirect instrument of monetary policy, which is used by \RBI to regulate the liquidity in banking system. ‘LAF’ stands for:

A. Liquidity Adjustment Facility
B. Liquidity Account Facility
C. Liquidity Allotment Facility
D. Long Adjustment Facility




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