UPSC Prelims Full Length Test - 30

Which of the following actions 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. Currency notes in India are issued by the Reserve Bank of India, while coins are issued by the Government of India.
2. Fixed deposits constitute a part of demand deposits in the banking system.

Which of the above statements is/are correct?

With reference to the composition of M3 (Broad Money) in India, consider the following statements:

1. Currency notes and coins held by the public
2. Net demand deposits held by the 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 a Central Bank to achieve monetary policy objectives?

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

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Which of the following are included in the foreign exchange reserves of India?

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

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