Quiz 2021: Prelims Power Play 8 April 2021

1. Consider the following statement about RBI’s monetary policy tools:

1. Repo rate change leading to banks changing corresponding changes in lending rate is called “Monetary policy transmission”.
2. Repo and reverse repo rates are qualitative instruments of RBI to guide monetary policy.
3. Increase in SLR (Statutory Liquidity Ratio) leads to increased availability of funds to lend for banks.

Which of the above statement is true?

2. Which of the following assets could be kept as part of SLR by the banks:

1. Treasury bills
2. Gold
3. Government bonds
4. Government approved securities

Select the correct answer from the code below:

3. With respect to Foreign Exchange Reserves, consider the following sentences:

1. Foreign Currency Assets includes the effect of appreciation or depreciation of the dollar, euro, pound and yen held in the foreign exchange reserves.
2. Foreign Exchange Reserves are used to cushion the economy against any sudden outflows.

Which of the statements given above is/are correct?

4. Consider the following statements regarding Lok Adalat

1. Lok Adalats have been given statutory status.
2. The decision made by the Lok Adalats is considered to be a verdict of a civil court and is ultimate and binding on all parties.
3. There is no court fee payable when a matter is filed in a Lok Adalat

Which of the statements given above is/are correct?

5. Consider the following pairs

1. White Goods – Refrigerators
2. Brown Goods – Television

Which of the above pairs is/are correct?