Controlling Reserve Requirements

Q.

State the conditions of schedule bank.

Q. Suppose the central bank has set the reserve requirement at 6%. The commercial bank has total deposits of 100 crore rupees and total loans of 50 crore rupees. How much money can be put into circulation through lending?

1. 3 crore rupees
2. 6 crore rupees
3. 47 crore rupees
4. 94 crore rupees

Q. The RBI mandates banks to keep a certain amount of funds in reserve.

1. commercial
2. specialised
3. public sector
4. payment

Q. Who mandates commercial banks to keep a certain amount of funds in reserve?

1. HDFC Bank
2. Bank of India
3. Reserve Bank of India
4. State Bank of India

Q.

Why does the central bank need to intervene in a managed floating system?