Monohar Pandey Solutions for Exercise 6: Exercise 6

Consider the following statements
1. Good money is money that shows little difference between its face value of the coin and its commodity value.
2. Bad money is money that has a commodity value considerably less than its face value.
Which of the statements given above is/are correct?

Select the incorrect one in the conditions of depreciating rupee from the give list of the situations

Consider the following statements regarding India's Minimum Reserve system and select the incorrect one/one's using the codes given below
1. In minimum reserve system, RBI had to keep a minimum reserve of gold worth ~ 115 crore and rest in Indian rupees.
2. The minimum requirement of foreign securities was diluted when minimum reserve system was launched.

If the RBI decides to adopt an 'expansionist' monetary policy, which of the following it would not do?
1. Cut CRR and optimise SLR
2. Increase MSFR (Marginal Standing Facility Rate)
3. Cut bank rate and increase Reverse Repo Rate

Which one of the following currencies is used by RBI to construct the Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) of Indian Currency?

The Government of India and RBI have decided to introduce 1 billion pieces of Rs 10 notes in polymer/plastic on a field trial basis. Which of the following is or are the objectives behind this move?
1. Increase of the lifetime of the notes
2. Combating counterfeiting
3. Reducing cost of minting of currency.
Select the correct answer using the codes given below

The monetary and credit policy is announced by which of the following ?

Consider the following statements.

$1$. Bank rate is the rate of interest which RBI charges its clients on their short term borrowing.

$2$. Repo rate is the rate of interest which RBI charges its clients on their long term borrowing.

Which of the statements given above is/are correct ?