UPSC Prelims Full Length Test - 30

Which of the following would increase the money supply in the economy?

1. A scheduled commercial bank issuing a cheque to its customer.
2. Reduction in Cash Reserve Ratio (CRR)
3. A customer depositing money in a scheduled commercial bank.
4. RBI issuing fresh currency

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Consider the following statements:

1. While currency is issued by the Reserve Bank of India, coins are issued by the Government.
2. Fixed deposits are also part of demand deposits.

Which of the above is / are correct?

M3, which is also known as "Broad Money", consists of which of the following?

1. Currency notes and coins held by public.
2. Net demand deposit held by public.
3. Savings deposits with Post Office Savings Banks.
4. Net time deposits of Commercial Banks.

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Which of the following tools are used by Central Bank to achieve Monetary Policy ends?

1. Open Market Operations
2. Reserve Ratios
3. Moral Suasion
4. Bank Rate

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Which of the following is/are part of the foreign exchange reserves of India?

1. Foreign Currency Assets (FCAs)
2. Gold
3. Special Drawing Rights (SDRs)

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