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Q1.

In UPSC Civil Services / State PSCs (Art & Culture): What happens when the Reserve Bank of India (RBI) increases the Cash Reserve Ratio (CRR)?

(A)

Commercial banks immediately expand consumer lending to increase profit margins

(B)

The foreign exchange reserves of India increase proportionately

(C)

Commercial banks have less lendable liquidity, leading to contraction of credit and upward pressure on interest rates

(D)

The statutory fiscal deficit of the Central Government is immediately reduced

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Q2.

In UPSC Civil Services / State PSCs (Art & Culture): Regarding the Comptroller and Auditor General of India (CAG), consider the following: CAG is appointed under Article 148 by the President. Which statement is correct?

(A)

CAG reports are audited privately by the Ministry of Corporate Affairs

(B)

CAG holds office during the pleasure of the Prime Minister

(C)

CAG is eligible for further employment under the Government of India upon retirement

(D)

CAG can be removed from office only on like grounds and in like manner as a Judge of the Supreme Court

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