Exercise Quiz & Test – 9


1. Through which of the following sources domestic funds are raised by companies?
(a) IPO only
(b) FPO only
(c) Commercial papers only
(d) Both IPO and FPO
(e) All IPO, FPO and commercial papers

View Answer
(a) IPO only

2. Out of FDI and FII, which is considered more permanent (stable)?
(a) FII is considered more stable than FDI.
(b) Both are equally stable.
(c) Both are equally unstable.
(d) FDI is considered more stable than FII.
(e) None of these

View Answer
(d) FDI is considered more stable than FII.

3. In the time of monetary shortage, RBI can buy commercial bills from the market. By using this method what does RBI provide to the market?
(a) It sucks credit from the market.
(b) It injects credit into the market.
(c) There is no effect on the credit situation in the market.
(d) None of these

View Answer
(b) It injects credit into the market.

4. Expand LIBOR?
(a) London Inter Bank Offered Rate
(b) London Inter Bank Official Rate
(c) London Inter Bank Offered Ratio
(d) London International Bank Offered Rate
(e) None of these

View Answer
(a) London Inter Bank Offered Rate

5. When was IDBI delinked from the RBI and taken over by Government of India?
(a) 1976
(b) 1977
(c) 1978
(d) 1980
(e) None of these

View Answer
(a) 1976

6. If the price rises by not more than 3% per annum, what type of inflation it is?
(a) Walking inflation
(b) Running inflation
(c) Creeping inflation
(d) Galloping inflation
(e) None of these

View Answer
(c) Creeping inflation

7. If the price rises by more than 20% and less than 1000% per annum, what type of inflation it is?
(a) Galloping inflation
(b) Creeping inflation
(c) Stagflation
(d) Hyperinflation
(e) None of these

View Answer
(a) Galloping inflation

8. If the Cash Reserve Ratio (CRR) is lowered by the RBI, its impact on the credit creation will be to
(a) Decrease it
(b) No effect
(c) Increase it
(d) None of these

View Answer
(c) Increase it

9. Who was the first Indian Governor of RBI?
(a) Yash Pal Singh
(b) Hemant Rao
(c) CD Deshmukh
(d) Jaipal Singh
(e) None of these

View Answer
(c) CD Deshmukh

10. Expand CRAR in terms of banking sector.
(a) Capital- to- Return Asset Ratio
(b) Capital –to-Risk Asset Ratio
(c) Capital –to-Risk Asset Range
(d) Core Risk Asset Return
(e) None of these

View Answer
(b) Capital –to-Risk Asset Ratio