Bank Theory

Expanded MCQs: Monetary & Fiscal Policy | National Income | Union Budget Monetary Policy and Tools 1. Which of the following is NOT a tool of monetary policy? Repo Rate Reverse Repo Rate Public Debt CRR Answer: c) Public Debt 2. During the Global Financial Crisis (2008), RBI mainly: Increased interest rates Reduced CRR and SLR Cut down budget deficit Privatized banks Answer: b) Reduced CRR and SLR 3. Who formulates the monetary policy in India? Finance Ministry Prime Minister's Office RBI NITI Aayog Answer: c) RBI 4. SLR refers to: Statutory Lending Rate Statutory Liquidity Ratio Standard Lending Rate Special Liquidity Reserve Answer: b) Statutory Liquidity Ratio Fiscal Policy ...

MCQs: Business Cycle, Policies, National Income MCQs: Business Cycles Characteristics of a Business Cycle 1. Which of the following is NOT a characteristic of a business cycle? Regular and predictable pattern Involves expansion and contraction Affects all sectors equally Recurrent in nature Phases of a Business Cycle 2. The phase of business cycle which is characterized by rising employment and income is: Recession Recovery Trough Depression MCQs: Monetary & Fiscal Policy Tools of Monetary Policy 3. Which is NOT a tool of monetary policy? CRR SLR Government spending Repo rate Monetary Policy Response to Global Financial Crisis 4. During the 2008 global financial crisis, the Reserve Bank of India: Increased interest rates Cut interest rates and infused liquidity Imposed capital controls Focused on exchange rate management...

National Income and GDP Concepts 1. What is National Income? National Income is the total value of all final goods and services produced by a country during a given period (usually one year), including income earned from abroad. 2. Major Aggregates of National Income GDP (Gross Domestic Product): Value of all final goods/services produced within the domestic territory. GNP (Gross National Product): GDP + Net Factor Income from Abroad (NFIA). NNP (Net National Product): GNP - Depreciation. National Income at Factor Cost: NNP at Market Price - Indirect Taxes + Subsidies. Example: GDP = ₹2,000 crore NFIA = ₹100 crore Depreciation = ₹150 crore Indirect Taxes = ₹180 crore, Subsidies = ₹30 crore GNP = 2000 + 100 = ₹2100 crore NNP = 2100 - 150 = ₹1950 crore National Income at Factor Cost = 1950 - 180 + 30 = ₹1800 crore 3. Methods of Computing National Income Production Method: NI = Gross Value Added (GVA) of all se...