Moral suasion by the RBI refers to: MCQ with Answer and Explanation

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Moral suasion by the RBI refers to:

A. buying securities from banks

B. persuasion and advice to banks to follow monetary policy objectives

C. raising reserve requirements

D. legal penalties on banks

Answer: Option B

Solution (By JKSSB Mock Tests)

Moral suasion is a non-statutory instrument of persuasion by the RBI to influence bank behaviour.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Phillips curve' in the long run is generally considered to be:

A. horizontal

B. upward sloping

C. vertical at the natural rate of unemployment

D. downward sloping

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Correct Answer: Option C

Explanation:
The long-run Phillips curve is vertical, implying no permanent trade-off between inflation and unemployment.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Ministry of Statistics and Programme Implementation' is responsible for:

A. official statistics and programme implementation

B. banking regulation

C. foreign trade

D. monetary policy

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Correct Answer: Option A

Explanation:
MoSPI handles official statistics and programme implementation.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Lorenz curve' is a graph showing:

A. GDP growth

B. inflation over time

C. income distribution

D. unemployment

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Correct Answer: Option C

Explanation:
The Lorenz curve graphically represents the distribution of income or wealth.

This question belongs to: Economy GK Economy Set 1

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