Q1. If a bank maintains a cash reserve ratio of 5%, with a cash base of Rs. 1,000 cr, then banks would be able to create credit of value:
Q2. To reduce the money supply in the economy, the central bank should:
Q3. If an economy is to control deflation like most Euro-zone nations, which of the following would be appropriate?
Q4. For commercial banks, the source of profit is:
Q5. Commercial banks advance loans:
Q6. __________________deposits indicate the savings of the depositors with the banks.
Q7. Primary deposits + Secondary deposits = Demand deposits. True or false?
Q9. LIC is a financial institution, and not a bank because:
Q10. According to a recent news item, "The repo rate has been lowered to 4% by the central bank". Why did the central bank do so?
Q11. Which of the following does not refer to monetary policy?
Q12. Which of the following functions of the central bank can help the commercial banks to deal with a situation of financial crisis?
Q13. The function of central bank involving buying and selling of government securities from or to the public and commercial banks is known as:
Q15. In which year did India get its central bank?