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Quantitative Aptitude

Percentages

Q. Consider t...

Question

Q. Consider the following statements regarding forex swaps between the RBI and commercial banks introduced recently:
Which of the statement(s) given above is/are correct?

A

1 and 2 only

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B

2 and 3 only

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C

1 and 3 only

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D

1, 2 and 3

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Solution

The correct option is B
2 and 3 only
Explanation:

Statement 1 is incorrect: It is a tool used by RBI to enhance liquidity in the system through which as much as $$$ 5 billion is bought from the banks in a swap deal that could inject nearly 35,000 crores into the system.This could potentially increase inflation.

Statement 2 is correct: Under the new swap, RBI wants to buy dollars from banks instead of bonds, but wants to return these dollars at the end of three years for a ‘forward’ premium. Forward premium is the price paid for hedging by buying dollars in the forward market.

Statement 3 is correct: According to bankers, the move is seen to lower the dependence on open market operations which have been a significant amount of the overall borrowing.

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Similar questions

Q. Q. Consider the following statements regarding forex swaps between the RBI and commercial banks introduced recently:

1. It is an instrument used to bring down inflation.
2. Under the new swap, the RBI wants to buy dollars from banks instead of bonds.
3. It can lower dependence on open market operations.

Which of the statement(s) given above is/are correct?

Q. हाल ही में आरबीआई और वाणिज्यिक बैंकों के बीच विदेशी मुद्रा स्वैप के संबंध में निम्नलिखित कथनों पर विचार करें:

1. यह एक उपकरण है जिसका उपयोग मुद्रास्फीति को नीचे लाने के लिए किया जाता है।
2. नई अदला-बदली के तहत, आरबीआई बांड के बजाय बैंकों से डॉलर खरीदना चाहता है।
3. यह खुले बाजार के संचालन पर निर्भरता कम कर सकता है।

ऊपर दिया गया कथन / कथन सही है / हैं?

Q. With reference to the Electoral Bond Scheme, consider the following statements:
1. Any Universal Commercial Bank can issue such bonds.
2. It is the RBI that pays interest over these bonds and not the issuing banks.
3. The identity of the buyer of these bonds is not disclosed even to the beneficiary.
Which of the statements given above is/are correct?

Q. Consider the following statements:
1) Buying and selling of the eligible securities by Reserve Bank of India is an important feature of the open market operation.
2) Open market operation influences the volume of loans and advance made by the commercial banks in India.
Which of the statements given above is/are correct?

Consider the following recommendations:

1.RBI should target only on reducing inflation and use only a single instrument to keep inflation under control;

2.Foreign investors should be allowed to invest in government bond market;

3.Government should sell small under-performing public sector banks;

4.Banks should be allowed to open branches and ATMs everywhere without restrictions.

Which of the above are among the draft recommendations of the RaghuramRajan Committee on Financial Sector Reforms?

Q. Consider the following statements:
1) Liquidity Adjustment Facility operations help the RBI effectively transmit Interest rate signals to the market.
2) Under the repo or repurchase option, banks borrow money from the RBI via the sale of securities with an agreement to purchase the securities back at a fixed rate at a future date.
Which of the statement(s) given above is/are correct?

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