Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means
A. Sale or purchase of Government securities
B. Issuance of different types of bonds
C. Auction of gold
D. To make available direct finance to borrowers
Answer: Sale or purchase of Government securities
More Financial Law MCQs and Answers
1. The performance of which scheme does the National Housing Bank monitor?
2. When did the National Bank of Agriculture and Rural Development establish?
3. When did the government acquire RBI’s shareholding (72.5%) in NABARD?
4. When did the National Housing Bank start its operations?
5. Who works as RBI’s agent at places where it has no office of its own?
6. Which of the following is true about the functions performed by RBI
7. Which among the following is incorrect?
8. Which of the following is true about the restrictions on RBI?
9. According to which guidelines did the Government pick up the entire SBI shares held by the RBI?
10. What is the full form of CBS?
11. ‘Subprime lending’ is a term applied to the loans made to
12. Which among the following is the act of taking on a risk for a fee?
14. Which of the following are to be followed by Commercial Banks for risk management?
15. What is the full form of CRR?
17. Who sets up ‘Base Rate’ for Banks?
19. The credit control methods adopted by RBi includes:
20. Which of the following are qualitative control methods
21. Which of the following are quantitative control methods
22. RBI promotes commercial banking by
23. Which act has given control & supervision powers to RBI over commercial banks
24. The merit of issuing notes with RBI can be seen in
26. Objective of monetary policy is to:
28. When RBI is the lender of last resort what does it mean?
29. Bank rate means
30. Which of the following statement is incorrect about Central Bank?
31. RBI pays interest on CRR balances of banks at
33. Consider the following statements about ADR
36. Consider the following statements about SIDBI
37. The National Housing Bank (NHB) was set up in India as a wholly-owned subsidiary of
39. The performance of which scheme does the National Housing Bank monitor?
40. Which one among the following formulates the fiscal policy in India?
42. What are the functions of IRDA?
43. An instrument representing ownership interest in securities of a foreign issuer is referred to as
45. Issuance of DRs is based on the increase of demand in the
46. Which of the following does not constitute a benefit of DRs for the issuer?
47. ADRs that do not qualify or are not intended to be listed on stock exchanges are referred to as
48. Which of the following is not an advantage of ADRs?
49. Which of the following is not associated with the risk involved in ADRs?
50. Level 1 is the most basic type of ADR where the foreign company