Quiz 1, 1 Dec 2022
Question 1
If the RBI adopts an expansionist open market operations policy, this means that it will
buy securities from non-government holders
sell securities in the open market
offer commercial banks more credit in the open market
openly announce to the market that it intends to expand credit
Question 2
Redistribution polices geared to reduce economic inequalities include
progressive tax policies
land reforms
rural development policies
All the above
Question 3
The budget deficit means
the excess of total expenditure, including loans, net of lending over revenue receipts
difference between revenue receipts and revenue expenditure
difference between all receipts and all the expenditure
fiscal deficit less interest payments
Question 4
Short-term finance is usually for a period ranging up to
5 months
10 months
12 months
15 months
Question 5
In India, which one among the following formulates the fiscal policy?
Planning Commission
Ministry of Finance
Finance Commission
The Reserve Bank of India