M0 in India is also known as: MCQ with Answer and Explanation

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M0 in India is also known as:

A. narrow money

B. broad money

C. reserve money

D. high-powered money plus time deposits

Answer: Option C

Solution (By JKSSB Mock Tests)

M0 is reserve money or high-powered money, comprising currency in circulation plus bankers' deposits with RBI and other deposits.

This question belongs to: Economy GK Economy Set 1

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Question #1

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After 1991, industrial licensing in India was abolished for:

A. no industries

B. all industries including defence

C. most industries except a short list related to security and strategic concerns

D. only small scale industries

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Correct Answer: Option C

Explanation:
Industrial licensing was abolished for most industries, retaining a short list for strategic and security reasons.

This question belongs to: Economy GK Economy Set 1

Question #2

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The term 'Open Market Operations' refer to:

A. Buying and selling of goods in the open market by the government

B. Issuing new shares by companies

C. Buying and selling of government securities by the central bank

D. Lending by commercial banks to the public

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Correct Answer: Option C

Explanation:
Open Market Operations involve the purchase and sale of government securities by the central bank to regulate liquidity and money supply in the economy.

This question belongs to: Economy GK Economy Set 1

Question #3

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Certificate of deposit is issued by:

A. mutual funds

B. banks and financial institutions

C. stock exchanges

D. RBI only

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Correct Answer: Option B

Explanation:
Certificates of deposit are issued by banks and financial institutions.

This question belongs to: Economy GK Economy Set 1

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