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41.

In which country was the instrument of minimum legal cash reserves ratio for banks first introduced?

A.	USA	B.	UK
C.	Germany	D.	Japan

42.

Which of the following is not a part of the un-organised Indian money market?

A.	Indigenous bankers	B.	Co-operative credit societies
C.	Chit funds	D.	Money lenders

43.

Which one of the following will reduce the capacity of commercial banks to lend?

A.	Sales of securities in the open market by the central bank	B.	Reduction in the discount rate
C.	Reduction of the required cash reserves ratio	D.	Purchase of securities by the Central bank in the open market

44.

If there is a significant decrease in the demand for loans, banks will be forced to:

A.	Sell securities to the public	B.	Adjust their protfolios
C.	Resort to creating credit	D.	Increase liquidity

45.

Open market operations refer to the buying and selling of:

A.	Commercial bills	B.	Foreign exchange
C.	Gold	D.	Government securities

46.

Bank rate refer to the interest rate at which:

A.	Commercial banks receive deposits from the public	B.	Central bank gives loans to commercial banks
C.	Government loans are floated	D.	Commercial banks grant loans to their customers

47.

The immediate effect of credit-creation by banks is:

A.	Rise in prices	B.	Increase in money supply
C.	Increase in real national income	D.	Reduction of poverty

48.

Selective credit control devices are used by the central bank of a country to:

A.	Regulate the volume of aggregate bank credit in the economy	B.	Regulate credit-creation on the part of some selected banks
C.	Control the flow of aggregate bank credit to different productive activities in the economy	D.	Selectively allocate credit among banks

49.

In a bimetallic standard:

A.	Two metals (usually gold and silver) are simultaneously monetized and their monetary values are fixed as legal tender	B.	Both gold and silver coins circulate as unlimited legal tender
C.	Coinage as well as exports and imports of both the metals are free	D.	All of the above

50.

One of the following is an instrument of qualitative credit control. Identify it:

A.	Credit rationing	B.	Bank rate
C.	Open-market operations	D.	Minimum statutory cash reserves ratio