Welcome to your 03 March 2023 Daily Quiz

1.Consider the following statements about Marginal Standing Facility (MSF) and Bank rate borrowings. 1. MSF is for long-term borrowing while the Bank rate is for short-term emergency borrowings. 2. While there is an upper limit for borrowing under MSF, such a limit is not applicable for borrowings under bank rate. 3. Interest charged on both MSF and Bank rate borrowings is higher than the repo rate. Which of the above statements are correct?

2.Which of the following statements about reserve ratios is correct?

3.Consider the following statements about financial markets. 1. Capital markets deal with both debt and equity markets. 2. Money market deals in financial assets whose maturity period is up to one year. 3. RBI regulates both money and capital markets in India. Which of the above statements are correct?

4.Which of the following are money market instruments? 1. Call money 2. Initial Public Offering 3. Commercial paper 4. Mutual funds 5. Certificate of deposit 6. Treasury bill 7. Futures Select the correct answer using the code given below.

5.Mr. Kuber wants to buy shares of a company when they are released through ‘Initial Public Offering’. In which of the following markets he can do this?

6.Consider the following statements about ‘Gilt-edged Securities (G-Secs)’. 1. They have minimal or zero risk of default. 2. They can be issued only by the central government in India. Which of the above statement(s) is/are correct?

7.Which of the following statements about Incremental Capital Output Ratio (ICOR) is incorrect?

8.Consider the following statements about the ‘Capital Adequacy Ratio’ (CAR). 1. It applies only to the scheduled commercial banks. 2. Merger of banks surely have a positive effect on the CAR. 3. A bank’s failure to maintain CAR can lead to the loss of its banking license. Which of the above statements are incorrect?

9. Which of the following statements about currency depreciation is/are correct?

10.Which of the following can be considered as ‘fiat money’? 1. Silver coins 2. Paper currency 3. Token metal coins 4. Bitcoins 5. Gold coins 6. Cash deposits with banks 7. Paytm wallet balance Select the correct answer using the code given below.

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