Central Bank

Q.

What is Legal Reserve Ratio? Explain its components.

Q.

What is the difference between bank rate and repo rate?

Q.

What do you mean by 'Fiscal Discipline'? What happens if fiscal discipline is not maintained in the economy?

Q.

The main objective of monetary policy in India is ______.

1. Growth with stability

2. Reduce poverty and achieve stability

3. Overall monetary stability

4. None of the above

Q.

Out of stabilisation measures and structural measures under NEP, can you choose one of them? If not why? Explain.

Q.

Which of the following rates are not decided by RBI?

1. SLR

2. Fixed Deposit Rate

3. CRR

4. Repo rate

Q.

Credit control means:

1. Extension and contraction of money supply

2. None of these

3. Extension of credit only

4. Contraction of credit only

Q.

On what basis do commercial banks create credit?

Q.

What is a commercial bank? Explain various types of accounts with commercial banks.

OR

What is central bank? Explain any three quantitative measures to control the money supply in the market.

Q.

Is repo rate an instrument of selective credit control?

Q. Distinguish between 'quantitative and qualitative measures of credit control'.

Q.

What do you mean by reverse repo rate?

Q. Which was the first indigenous bank established in India?

1. Central Bank of India
2. Imperial Bank of India
3. Punjab National Bank
4. Reserve Bank of India

Q. Dear money policy is followed to ________.

1. check inflation
2. to reserve depression
3. to appease the public
4. to increase disposal income of the households

Q. Briefly explain the 'change in bank rate policy' as a credit control method adopted by the Central Bank.

Q. Banks which follow all the norms laid down by the RBI and meet certain stipulated conditions are called banks.

1. unscheduled
2. scheduled
3. apex
4. subsidiary

Q. Fill in the blanks with appropriate alternatives given in the brackets.

1. Central bank has the __________ of note issue. (monopsony/monopoly/duopoly/oligopoly)
2. The central bank acts as a ____________ of cash reserves of the country. (head/ leader/ custodian/ locker)
3. Bank Rate is also called as __________ rate. (rediscount/ market/ general/ exchange)
4. ____________ is the apex body of the monetary and banking systems of the nation's economy. (Commercial bank/ Central bank/ Government/ Co-operative bank)
5. Reserve Bank of India was established in _____________. (1937/ 1939/ 1935/ 1934)

Q. Selective credit control affects the size of total credit in the economy.

1. True
2. False

Q. Selective credit control method is used to __________.

1. regulate credit for some specific purpose
2. redirect credit for some specific purpose
3. restrict supply of credit to check inflation
4. restrict credit to some identified companies

Q. State with reasons whether you agree or disagree with the following statements.

1. Central Bank is the Bank of Issue.
2. A co-operative bank acts as a lender of the last resort.
3. Credit control is the function of the Central Bank of the country.
4. Central Bank is a profit-making institution.
5. Central Bank having monopoly of note issue is most appropriate institute of the government.

Q. Regulation of consumer credit is a quantitative credit control measure of the central bank.

1. True
2. False

Q. The concept of 'universal banking' was implemented in India on the recommendations of _________________.

1. RH Khan Committee
2. Abid Hussain Committee
3. S Padmanabhan Committee
4. YH Malegam Committee

Q. Which of the following is not a quantitative method of credit control __________________.

1. The Repo Rate
2. Consumer credit regulation
3. Open market operations
4. Bank Rate policy

Q. SBI has merged which of the following two associate banks with itself?

1. State Bank of Mysore and State Bank of Travancore
2. State Bank of Indore and State Bank of Saurashtra
3. State Bank of Hyderabad and State Bank of Patiala
4. State Bank or Hyderabad and State Bank of Travancore

Q. When RBI grants a loan to commercial banks and charges interest on it, it is called _________.

1. Rapo rate
2. Reverse Rapo rate
3. Sweep stack rate, basic rate
4. Bank rate

Q. What is meant by Cash Reserve Ratio?

Q. Banking Ombudsman Scheme was announced in ______.

1. 1950
2. 1995
3. 1947
4. 1965

Q. Banking Ombudsman Scheme is applicable to the business of____________.

1. Only public sector banks
2. All scheduled commercial banks excluding RRBs
3. All scheduled commercial banks including RRBs
4. All banking companies

Q. State with reasons whether you agree or disagree with the following statements.
Credit Control is the function of Central Bank of the country.

Q. Distinguish between 'Voluntary debt' and 'Compulsory debt'.