Q 1. Manager of SBI, Paschim Vihar Branch: "I am in dire need for funds to meet any requirements for ten days". Manager of Punjab National Bank, Nehru Place: "Why don't you borrow from RBI to meet your financial requirements for ten days". Based on the given information, which of the following interest rates will be charged by the RBI?
Q 2. If the Central Bank decreases the Reverse Repo Rate, how will it effect the money multiplier?
Q 3. According to a news item, "RBI imposes fine on four Public Sector Banks for violating KYC norms". Which function of the Central Bank is highlighted in the given statement?
Q 4. Primary Deposits + Secondary Deposits = Demand Deposits.
Q 5. India follows a _______________ in terms of currency issue.
Q 6. The currency notes issued by the Central Bank are:
Q 7. "In the concept of money supply, demand deposits are taken on a net basis". It means that:
Q 8. The deposits against which money cannot be withdrawn any time are called:
Q 9. During periods of depression, commercial banks are advised to follow:
Q 10. Managed Floating is often referred to as "Dirty Floating", as the Central Bank can enter the Forex market to buy and sell foreign exchange in case of excessive currency appreciation or currency depreciation. Which function of Central Bank can be best related to the statement?
Q 10. Which measure of money supply is least liquid?
Q 12. By accepting deposits, commercial banks can facilitate capital formation.
Q 13. If the reserve deposit ratio is 0.4 and primary deposits of commercial banks is ₹ 10,000, then what will be the value of total lending by the banks?
Q 14. If the Reverse Repo Rate is 4%, then the Repo Rate would be lower than the Reverse Repo Rate.
Q 15. Bank rate is the rate of interest charged by the banks on commodity loans.
Q 16. Those instruments of monetary policy that aim at controlling the direction of credit are known as:
Q 17. Higher the Statutory Liquidity Ratio, _______________ would be the credit creation.
Q 18. Electronic transfer of money in terms of debit/credit entries of the account holders in banks is known as:
Q 19. In India, one rupee note bears the signature of:
