1. “Federal Reserve” is the Financial Organization of ______?
a) The USA
b) The UK
c) UAE
d) France
e) Japan

2. Commercial paper may be issued for a period of ____?
a) 90 days
b) 91 to 180 days
c) 181 days to one year
d) 7 days to 1 year

3. To check an inflation the Central Bank or RBI may
a) Increase the cash reserve ratio
b) Decrease the cash reserve ratio
c) Both A & B
d) None

4. To check a deflation the Central Bank or RBI may
a) Increase the cash reserve ratio
b) Decrease the cash reserve ratio
c) Both A & B
d) None

5. An order cheque can be converted into a bearer cheque by means of ________?
a) Sans recourse endorsement
b) Special endorsement
c) Blank endorsement
d) Sans frais endorsement
e) None of the above

6. The objective of Monetary Policy are
a) Ensuring price stability
b) Exchange rate stability
c) To encourage economic growth and full employment
d) All the above

7. Contract of Credit when
a) Bank rate is raised
b) Bank rate is lowered
c) OMO – selling policy adopted
d) Reserve requirement ratio is lowered

8. The bank rate is
a) Every bank has to keep certain minimum cash balance with RBI is called
b) The RBI borrows money from commercial banks within the country is called
c) Rate at which trade bills are re-discounted by RBI
d) None of the above

9. Interest on the savings bank accounts is compounded ____?
a) Monthly
b) Yearly
c) Quarterly
d) Half-yearly
e) All of the above

10. Under Marginal Standing Facility ( MSF) banks can borrow
a) Overnight up to 2 per cent of their net demand and time liabilities from the RBI
b) Overnight up to 4 per cent of their net demand and time liabilities from the RBI
c) Overnight up to 1 per cent of their net demand and time liabilities from the RBI
d) None