If the RBI adopts expansionist open market operations policy, this means that it will:

• openly announce to the market that it intends to expand credit
• sell securities in open market
• offer commercial banks more credit in the open market
• buy securities from non-government holders
Correct Option: B  [ sell securities in open market ]

Remark:

In order to control inflationary price rise, Reserve Bank directs Banks to

• Reduce rate of interest on credit
• Reduce Statutory Liquidity Ratio (SLR)
• Increase Cash Reserve Ratio (CRR)
• Buy bonds from capital market
Correct Option: C  [ Increase Cash Reserve Ratio (CRR) ]

Remark:

Who was the first Governor of Reserve Bank of India (RBI)?

• C D Deshmukh
• Sir Osborne Smith
• James Braid Taylor
• Benegal Rama Rau
Correct Option: B  [ Sir Osborne Smith ]

Remark: from 1935 to 1937

Which of the following was established in 1990 as a wholly owned subsidiary under the Small Industries Development Bank of India Act, 1989 ?

• RBI
• SIDBI
• ICICI
• NABARD
Correct Option: B  [ SIDBI ]

Remark:

If withdrawal of a worker from employment does not create any output loss, this situation is known as

• Search unemployment
• Voluntary unemployment
• Disguised unemployment
• Frictional unemployment
Correct Option: C  [ Disguised unemployment ]

Remark:

First Five Year Plan started in India in the year?

• 1952
• 1956
• 1950
• 1951
Correct Option: D  [ 1951 ]

Remark: 1951-56

National Development Council was set up in:

• 1950
• 1951
• 1952
• 1954
Correct Option: C  [ 1952 ]

Remark:

The Plan launched in the 50th year of Indian Independence was :

• Sixth five year plan
• Eighth five year plan
• Ninth five year plan
• Tenth five year plan
Correct Option: C  [ Ninth five year plan ]

Remark: