SMART

CURRENT
AFFAIRS
LECTURE NO. 37
THEME: Economics
Topic: Money & Banking
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Question-1: LAF by RBI allows:

1. RBI to manage market liquidity on a daily basis.
2. Transmit interest rate signals to the market.
Which of the statements given is/are correct?
a. Only 1
b. Only 2
c. Both 1 & 2
d. None of the above

Question-2: Consider the following statements regarding Policy Corridor of India:

1. Penal rate is 25 basis points ahead of Repo rate
2. SDF is 25 basis points ahead of Repo Rate.
3. Reverse Repo rate is 50 basis points within the range of Repo Rate.
How many of the above statements are correct?
a. Only one
b. Only two
c. Only Three
d. Only Four

Question-3: Consider the following statements regarding Liquidity Adjustment Facility (LAF)?
1. It is a monetary tool to control short-term money supply in economy.
2. It helps banks to manage their daily liquidity by pledging government securities to RBI.
3. It consists of Repo and Reverse Repo transactions
4. Repo rate is Reverse repo rate plus 0.25%
Select the correct answer from following options:
a. Only a and d
b. a, b and c
c. b, c and d
d. All are correct

Question-4: With reference to the liberalised remittance scheme, consider the following statements:
1. Individuals can send up to 2.5 lakh U.S. dollars out of India annually without RBIs approval
2. The remitted amount is subjected to TCS
3. It is available only to the resident individuals and not to partnership firms and corporations
How many of the above statements are correct?
a. Only one
b. only two
c. All three
d. None

Question-5: With reference to the first loss default guarantee agreement, consider the following
statements:
1. It provides a first loss guarantee up to pre decided percentage of loans generated by it.
2. Reserve Bank of India has barred it from the digital lending space operating in India
Which of the statements given above is/are correct?
a. 1 only
b. 2 only
c. Both 1&2
d. Neither 1 nor 2

Economics (Jayant Parikshit) Page 1 of 1

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