While initially established in Calcutta in 1935, the RBI’s central headquarters was permanently moved to Mumbai in 1937.
82. Which one is NOT a component of fiscal policy?
(A) Government receipts
(B) Statutory Liquidity Ratio
(C) Government Expenditure
(D) Public debt
Answer:
(B) Statutory Liquidity Ratio
Explanation:
Fiscal policy relates to government revenue and expenditure. The Statutory Liquidity Ratio (SLR) is a reserve requirement tool used in monetary policy by the central bank.
83. Which of the following is the definition of a budget deficit?
(A) Excess of the total expenditure over interest payments and borrowings
(B) Excess of the total expenditure over the total receipts minus borrowings
(C) Excess of the total expenditure over the total receipts
(D) Excess of the revenue expenditure over the revenue receipts
Answer:
(C) Excess of the total expenditure over the total receipts
Explanation:
A budget deficit occurs precisely when an entity’s total spending (expenditure) surpasses its total income (receipts) over a specific timeframe.
84. To solve the balance of payment crisis in 1991, the Indian Rupee was ________ against foreign currencies.
(A) Appreciated
(B) Delinked
(C) Revalued
(D) Devalued
Answer:
(D) Devalued
Explanation:
As part of the 1991 macroeconomic stabilization reforms, the RBI sharply devalued the Indian Rupee in two phases to stimulate exports and curb the severe BoP crisis.
85. The first All India Development Financial Institutions is:
(A) IFCI
(B) IIBI
(C) IDBI
(D) SIDBI
Answer:
(A) IFCI
Explanation:
The Industrial Finance Corporation of India (IFCI) was established in 1948, making it the very first development financial institution set up by the Indian government after independence.
