General Knowledge Test with questions about different types of economies for exams like UPSC, SSC, UPPSC, Banking, RPSC, MPSC, KAS, MPPSC, and others.
1. In which category does “interest rate risk” fall?
- Credit Risk
- Market Risk
- Operational Risk
- Liquidity Risk
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Answer: Option B. Market Risk
2. How many members are there in the Monetary Policy Committee (MPC)?
- 6 members
- 10 members
- 12 members
- 15 members
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Answer: Option A. 6 members
3. What is the most likely outcome if the Reserve Bank of India decides to sell securities?
- Decrease in inflation
- Increase in the money supply
- Decrease in foreign investment
- Decrease in cash reserves for commercial banks
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Answer: Option D. Decrease in cash reserves for commercial banks
4. Which of the following qualifies as a Money Market Instrument?
- Corporate Bonds
- Equity Shares
- Treasury Bills
- Real Estate Investment Trusts (REITs)
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Answer: Option C. Treasury Bills
5. Which rate do banks in India typically use as a benchmark for pricing rupee loans and advances?
- Marginal Cost of Funds based Lending Rate (MCLR)
- Bank Rate
- Repo Rate
- Reverse Repo Rate
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Answer: Option A. Marginal Cost of Funds based Lending Rate (MCLR)