The Reserve Bank of India acts as lender of last resort by: MCQ with Answer and Explanation

Question

Share Report Error

The Reserve Bank of India acts as lender of last resort by:

A. issuing currency against gold

B. providing funds to banks when they cannot obtain funds from other sources

C. lending only to the central government

D. giving loans to the public at low interest

Answer: Option B

Solution (By JKSSB Mock Tests)

The RBI as lender of last resort provides funds to banks facing liquidity crises when other sources are unavailable.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Which of the following is a characteristic of the 'Balanced Growth' path in the Solow model?

A. Per capita variables grow at different rates

B. Only capital grows while output is constant

C. Capital, output and effective labour all grow at the same rate

D. There is no steady state

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
On the balanced-growth path of the Solow model, aggregate capital, output and effective labour grow at the exogenous rate of technological progress plus population growth, so that capital and output per effective worker are constant.

This question belongs to: Economy GK Economy Set 1

Question #2

A regressive tax is one where:

A. the tax rate rises as income rises

B. there is no tax on income

C. the tax rate is constant

D. the tax burden falls more heavily on lower income groups

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
A regressive tax takes a larger percentage of income from low-income earners.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Annual Survey of Industries' collects data on:

A. agricultural output

B. registered manufacturing industries

C. service sector only

D. foreign trade

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Annual Survey of Industries covers registered manufacturing establishments.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs