Page 101 - VIRANSH COACHING CLASSES

Q. 4. Assertion and Reasoning : Reasoning (R) : RBI has to maintain the
1) Assertion (A) : Money market economizes use official rate of exchange of rupee and ensure its
of cash stability.
Reasoning (R) : Money market deals with Options : 1) (A) is True, but (R) is False
financial instruments that are close substitutes 2) (A) is False, but (R) is True
of money
3) Both (A) and (R) are True and (R) is the
Options : 1) (A) is True, but (R) is False correct explanation of (A)

2) (A) is False, but (R) is True 4) Both (A) and (R) are True and (R) is not the
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
correct explanation of (A)
Q. 5. Identify and explain the concepts from the
4) Both (A) and (R) are True and (R) is not the given illustrations :
correct explanation of (A) 1) Raghu’s father regularly invests his money in

2) Assertion (A) : Regional stock exchanges have stocks and bonds.
witnessed a sharp decline in the volume of 2) Sara makes a monthly contribution to a fund
trade. jointly created by her friends. The collected fund
Reasoning (R) : Investors prefer to trade in is then given to a chosen member through lucky
securities listed in premier stock exchanges like draw.
BSE, NSE etc. 3) Tina deposited a lumpsum amount of ` 50,000

Options : 1) (A) is True, but (R) is False in the bank for a period of one year.
2) (A) is False, but (R) is True 4) ABC bank provides d-mat facility, safe
3) Both (A) and (R) are True and (R) is the deposit lockers, internet banking facilities to its
correct explanation of (A) customers.

4) Both (A) and (R) are True and (R) is not the Q. 6. Distinguish between :
correct explanation of (A) 1) Money market and Capital market.
3) Assertion (A) : The unorganized sector of the 2) Demand deposit and Time deposit.
money market lacks transparency. 3) Organized sector and Unorganized sector of

Reasoning (R) : Activities of the unorganized money market.
sector are largely confined to rural areas. Q. 7. Answer the following :
Options : 1) (A) is True, but (R) is False 1) Explain the problems faced by the money
2) (A) is False, but (R) is True market in India.
3) Both (A) and (R) are True and (R) is the 2) Explain the functions of commercial bank.
correct explanation of (A) 3) Explain the role of capital market in India.

4) Both (A) and (R) are True and (R) is not the 4) Explain the problems of capital market in India.
correct explanation of (A) Q. 8. Answer in detail :
4) Assertion (A) : Foreign exchange management 1) Explain the role of money market in India.
and control is undertaken by commercial banks. 2) Explain the functions of RBI.
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