Indian Economy

61. If the RBI adopts an expansionist open market operations policy, this means that it will

A. buy securities from non-government holders
B. sell securities in the open market
C. offer commercial banks more credit in the open market
D. openly announce to the market that it intends to expand credit

Correct Answer: C. offer commercial banks more credit in the open market

62. Redistribution policies geared to reduce economic inequalities include

A. progressive tax policies
B. land reforms
C. rural development policies
D. All the above

Correct Answer: D. All the above

63. Short-term finance is usually for a period ranging up to

A. 5 months
B. 10 months
C. 12 months
D. 15 months

Correct Answer: C. 12 months

64. In India, which one among the following formulates the fiscal policy?

A. Planning Commission
B. Ministry of Finance
C. Finance Commission
D. The Reserve Bank of India

Correct Answer: B. Ministry of Finance

65. The budget deficit means

A. the excess of total expenditure, including loans, net of lending over revenue receipts
B. difference between revenue receipts and revenue expenditure
C. difference between all receipts and all the expenditure
D. fiscal deficit less interest payments

Correct Answer: C. difference between all receipts and all the expenditure

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