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    Read The Following News Report and Answer Q. 1-4 On The Basis of The Same: (Case Based Question)

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    Aditya Bangre
    The document is an economics test for class 12 that contains 16 multiple choice questions and 4 short answer questions based on a news report about the Reserve Bank of India's monetary policy decisions. The RBI kept interest rates unchanged and approved a one-time loan restructuring scheme. It also continued liquidity support and opened a new window for small lenders. Key details include that the repo rate was kept at 4% while the reverse repo rate was reduced to 3.35%.

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    Read The Following News Report and Answer Q. 1-4 On The Basis of The Same: (Case Based Question)

    Uploaded by

    Aditya Bangre
    140 views4 pages
    The document is an economics test for class 12 that contains 16 multiple choice questions and 4 short answer questions based on a news report about the Reserve Bank of India's monetary policy decisions. The RBI kept interest rates unchanged and approved a one-time loan restructuring scheme. It also continued liquidity support and opened a new window for small lenders. Key details include that the repo rate was kept at 4% while the reverse repo rate was reduced to 3.35%.

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    12th Eco Aug.Test21-22

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    The document is an economics test for class 12 that contains 16 multiple choice questions and 4 short answer questions based on a news report about the Reserve Bank of India's monetary policy decisions. The RBI kept interest rates unchanged and approved a one-time loan restructuring scheme. It also continued liquidity support and opened a new window for small lenders. Key details include that the repo rate was kept at 4% while the reverse repo rate was reduced to 3.35%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    140 views4 pages

    Read The Following News Report and Answer Q. 1-4 On The Basis of The Same: (Case Based Question)

    Uploaded by

    Aditya Bangre
    The document is an economics test for class 12 that contains 16 multiple choice questions and 4 short answer questions based on a news report about the Reserve Bank of India's monetary policy decisions. The RBI kept interest rates unchanged and approved a one-time loan restructuring scheme. It also continued liquidity support and opened a new window for small lenders. Key details include that the repo rate was kept at 4% while the reverse repo rate was reduced to 3.35%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    August Test- 2021-22

    Class-12

    Subject-Economics

    Time: 1 Hr. M.M.20

    Read the following News Report and answer Q. 1-4 on the basis of the same: (case based
    question)
    The Monetary Policy Committee of the Reserve Bank of India kept interest rates on hold
    Thursday even as it vowed to keep policy sufficiently loose to help revive the coronavirus-
    battered economy. Accepting a key demand of lenders and the corporate sector, the central
    bank cleared a one-time restructuring of loan accounts to bail out stressed borrowers,
    including personal, small and medium loans. The details of the loan restructuring scheme —
    expected to kick in after the moratorium on loan repayments ends August 31 — will be
    worked out by a committee headed by former ICICI Bank Chairman KV Kamath. The RBI also
    continued to provide support on the liquidity front and opened a new targeted window for
    small lenders. The central bank kept the repo rate unchanged at 4 per cent and reduced the
    reverse repo rate to 3.35 per cent.
    Q.1 Suppose you are a member of the Monetary Policy Committee of the RBI. You have suggested
    the ________

    of the money supply be ensured to help revive the coronavirus-battered economy.

    (a) restriction (b) release

    (c) doubling (d) no change

    Q.2 “The Monetary Policy Committee of the RBI kept interest rates on hold...” Which of the
    following is

    highlighted above by the term ‘interest rates’?

    (a) Bank Rate and Repo Rate (b) Bank Rate and Lending Rate

    (c) Repo Rate and Reverse Repo Rate (d) Bank Rate and Reverse Repo Rate

    Q.3 What does the ‘Repo Rate’ mean?

    (a) Rate at which banks borrow from the RBI for short-term.

    (b) Rate at which banks borrow from the RBI for long-term.

    (c) Rate at which banks deposit excess funds with the RBI.

    (d) Rate at which banks lend funds to the public.

    Q.4 ‘Reduction in Repo Rate by RBI’ is likely to _________ the demand for goods and services in the
    economy.

    (a) increase (b) decrease

    (c) double (d) not affect


    Choose the correct option(MCQ)
    5. The interest rate paid by the banks to depositors is lower than the rate charged from the
    borrowers. This difference

    between these two types of interest rates is called ______.

    (a) Bank Rate (b) Lending Rate

    (c) Repo Rate (d) Spread

    6.Total deposits created by commercial banks is `20,000 crore and LRR is 20%. Calculate the amount
    of initial

    deposits.

    (a) `6000 crore (b) `4000 crore

    (c) `5000 crore (d) `3000 crore

    7. The value of money multiplier is equal to ___________.

    (a) 1/Cash Reserve Ratio (b) 1/Legal Reserve Ratio

    (c) 1/Statutory Liquidity Ratio (d) All of these

    8. M1 measure of money supply is defined as follows:

    M1= CU +DD where, CU is Currency (notes plus coins) held by the public and DD is ‘net’ demand
    deposits held

    by commercial banks. What does word ‘net’ imply here?

    (a) Only deposits of the public held by the banks are to be included in money supply.

    (b) The interbank deposits, which a commercial bank holds in other commercial banks, are not to be
    regarded as

    part of money supply.

    (c) Both (a) and (b)

    (d) It implies aggregate monetary resources.

    9. MPCE stands for:

    (a) Monthly per Capita Expenditure

    (b) Minimum Per Capita Expenditure

    ( c) Maximum Per Capita Expenditure

    (d) None of these

    10. Which organization collects data on poverty in India?

    (a) NSSO (b) SJSRY (C) MGNREGA (d) None of these

    11. The programme initiated by government to improve food and nutritional level of poor was:
    (a) Public Distribution System (b) Midday Meal Scheme (c) MGNREGA (d) Both (a) and (b)

    12. Which poverty indicates towards the large inequalities of income in the society ?

    (a) Absolute (b) Relative (c) Both (a) and (b) (d) None of above

    13. Scheme for construction of home to be given to the poor free of cost was:

    (a) Jawahar Awas Yojna (b) Rajeev Awas Yojna (c) Indira Awas Yojna (d) None of these

    14. The people who move up and down the poverty line are called:

    (a) Chronic poor (b) Occasionally poor (c) Non-poor (d) Churning poor

    15. According to Jail Cost of Living poverty line is estimated at :

    (a) Three fourth of adult jail cost of living

    (b) One third of adult jail cost of living

    (c) One fourth of adult jail cost of living

    (d) Two third of adult jail cost of living

    16. A cut-off point based on the ‘Monthly Per Capita Expenditure’ dividing the population as poor
    and non-poor is termed as:

    (a) Ginni coefficient (b) Per capita income (c) Poverty line (d) Relative Poverty

    Multiple Choice Questions (MCQ) on Assertion-Reasoning Type


    Read the following statements-Assertion (A) and Reason (R), and select the correct
    alternative in each case:
    (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
    Assertion (A).
    (b)Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation
    of Assertion (A)
    (c) Assertion (A) is true but Reason(R) is false.
    (d) Assertion (A) is false but Reason(R) is true.
    17. Assertion (A): Currency created by the Central Bank Is called bank Money.
    Reason (R): Central Bank of a country has monopoly over the currency issue. It has the sole
    responsibility of
    printing and putting in circulation all types of currency notes (with a few exceptions).
    18. Assertion (A): An increase in Legal Reserve Deposit Ratio increases the credit creation
    power of the commercial
    banks (banking system).
    Reason (R): Credit creation = Primary deposits × 1/ Legal Reserve Ratio
    19. Assertion (A): Currency notes and coins are called fiat money.
    Reason (R): RBI is responsible for giving the bearer of the currency equal purchasing power
    20. Assertion (A): Currency notes and coins are called legal tenders.
    Reason (R): They cannot be refused by any citizen of the country for settlement of any kind
    of transaction.

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