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State PSC Current Affairs — practice questions — page 2

Explore 347 free Current Affairs questions in State PSC Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Current Affairs questions and exercises with answers

Showing questions 31–60 of 347.

For a bank, the main liability is its:Read the answer and worked solution →A bank's net worth equals:Read the answer and worked solution →The percentage of deposits a bank must keep as cash reserves is the:Read the answer and worked solution →Reserves that banks must hold in liquid form in the short term are set by the:Read the answer and worked solution →With a CRR of 20 per cent, reserves of Rs 100 can support total deposits of:Read the answer and worked solution →Because it stands ready to lend to banks at all times, the central bank is called the:Read the answer and worked solution →Moral suasion and margin requirements are which kind of monetary policy tool?Read the answer and worked solution →Buying and selling of government bonds by the RBI in the open market is called:Read the answer and worked solution →When the RBI buys a government bond in the open market, the money supply:Read the answer and worked solution →The rate at which the RBI lends money through a repurchase agreement is the:Read the answer and worked solution →The rate at which the RBI withdraws money by selling securities with a buy-back agreement is the:Read the answer and worked solution →The rate at which the RBI gives loans to commercial banks is called the:Read the answer and worked solution →Catch the quantitative toolsRead the answer and worked solution →Pop the RBI functionsRead the answer and worked solution →Run the banking numbersRead the answer and worked solution →Slice the banking wordsRead the answer and worked solution →Asset or liabilityRead the answer and worked solution →Sort the money termsRead the answer and worked solution →Type the numberRead the answer and worked solution →Money and banking bingoRead the answer and worked solution →Which Article of the Constitution requires an Annual Financial Statement to be laid before Parliament?Read the answer and worked solution →India's financial year runs from:Read the answer and worked solution →Goods like national defence and roads, which the market cannot provide, are called:Read the answer and worked solution →Users who enjoy a public good without paying for it are known as:Read the answer and worked solution →When goods are produced directly by the government, it is called:Read the answer and worked solution →Receipts that do not create a claim on the government are:Read the answer and worked solution →Personal income tax and corporation tax are examples of:Read the answer and worked solution →Excise duties are taxes levied on goods:Read the answer and worked solution →Wealth tax, gift tax and estate duty, which raised little revenue, were referred to as:Read the answer and worked solution →A tax in which the rate rises as income rises is called:Read the answer and worked solution →

Worked practice questions

For a bank, the main liability is its:

  1. Deposits
  2. Advances
  3. Reserves
  4. Buildings
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Correct answer: A. Deposits

1. Liabilities are what a firm owes. 2. A bank owes its depositors. 3. Assets are reserves plus loans. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

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A bank's net worth equals:

  1. Loans minus reserves
  2. Assets minus liabilities
  3. Deposits plus loans
  4. Reserves plus cash
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Correct answer: B. Assets minus liabilities

1. Both sides of a balance sheet must balance. 2. Net worth is assets minus liabilities. 3. It is recorded on the liabilities side. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

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The percentage of deposits a bank must keep as cash reserves is the:

  1. Bank Rate ratio
  2. Repo Rate ratio
  3. Cash Reserve Ratio
  4. Liquidity Ratio
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Correct answer: C. Cash Reserve Ratio

1. It is a legal requirement set by the RBI. 2. This is the Cash Reserve Ratio, CRR. 3. It stops banks over-lending. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

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