Static Quiz 15 May 2025 (Economy)

Which of the following statements is/are correct with reference to National Asset Reconstruction Company Limited (NARCL)?
1. It is a government-backed bad bank incorporated under the Companies Act, 2013.
2. Reserve Bank of India (RBI) has majority ownership in NARCL.
Select the correct answer using the code given below:

Consider the following statements:
• Statement-I: Sterilization action of RBI limits the impact of foreign exchange inflows and outflows on the domestic money supply.
• Statement-II: Buying or selling of foreign currencies by RBI affects the domestic money supply.
Which one of the following is correct?

Which of the following statements correctly differentiates between the capital market and money market?
1. The capital market facilitates trading in both debt and equity instruments, while the money market deals only in debt instruments.
2. Instruments in the money market generally carry higher risk and higher returns compared to the capital market.
3. In India, capital markets are primarily regulated by SEBI, while the money market is regulated by the RBI.
Select the correct answer using the codes given below:

Which of the following functions fall under RBI’s statutory obligation as the “Banker to the Government”?
1. Maintenance of principal accounts for both Central and State Governments
2. Performing merchant banking functions for the Central and State Governments
3. Management of public debt of Central Government
Select the correct answer using the code below:

With reference to ‘Fiscal Deficit’ in the context of Indian economy, consider the following statements:
1. Fiscal deficit includes total borrowing requirements of the government.
2. Fiscal deficit is the difference between total expenditure and total receipts excluding borrowings.
3. High fiscal deficit always indicates a healthy economy.
Which of the statements given above is/are correct?