1. Which of the following ought to be the core objective of a monetary policy?

A. Stability in employment

B. Price stability

C. Money supply

D. Growth in employment

2. The RBI is assigned the role of performing supervisory functions by virtue of the powers conferred by the RBI Act, 1934. Which one of the following is not included under the RBI Act, 1934?

A. Inspection of banks

B. Issues related to furnishing credit information from the commercial banks

C. Power of RBI to impose penalties

D. Definition of NBFCs

3. Which of the following is not true with regard to the impact of NPAs on banks?

A. Erode current profits

B. Diminution in the value of loan assets

C. Reduction in interest income

D. Limit recycling of funds

4. A loan that is structured and supported specifically by the operation and performance of a specific business or enterprise is called a _____________.

A. Commercial loan

B. Personal loan

C. Educational loan

D. Overdraft

5. Which country by their policy statement, though often referring to price stability, attaches importance to controlling inflation?

A. USA

B. Germany

C. Canada

D. Australia

Answers:1 (B), 2 (A), 3 (B), 4 (A), 5 (A)

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