Functions of the Central Bank

Q.

Which of the following is not the function of the Reserve Bank of India ?

1. Keeping of Foreign Exchange Reserve

2. Acting as banker to the Government

3. Issuing of coins

4. Regulating credit in the country

Q.

Which agency prints 1 rupee note in India?

Q.

Explain the 'bank of issue' function of the central bank.

Q.

Which of the following are common functions of the central bank?

1. Conduct of monetary policy

2. Lending to the general public

3. Supervising the stock market

4. Lending to the commercial banking system

Q.

Modern forms of money are closely linked to the process of banking. Explain.

Q.

Which of the following is NOT true about the central bank?

1. It deals directly with commercial banks and the public

2. It has full control over the money supply

3. It is the custodian of reserves

4. It is the sole authority to issue currency notes

Q.

What does OMO stand for?

Q.

Which of the following functions of a central bank may potentially conflict with its monetary policy role?

1. Supervisor of the banking system.

2. Banker to the banking system

3. Manager of the national debt.

4. Banker to the government.

5. Issuer of currency.

1. 1 and 4

2. 1 and 3

3. 2 and 4

4. 1, 2 and 3

Q.

It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.

1. Commercial papers

2. None of the above

3. Call money

4. Commercial bill

Q.

Acting as a ___ house, the central bank ensures that accounts are settled and reduces the amount of labour and time involved.

1. clearing

2. reserving

3. power

4. None of the above

Q.

What are the kinds of reserves?

Q.

What is the current SLR for commercial banks in India?

Q. Explain the secondary or subsidiary functions of commercial bank.

Q. In India, which of the following formulates the fiscal policy?

1. Reserve Bank of India
2. Ministry of Finance
3. Planning Commission
4. Finance Commission

Q.

What are the types of reserves?

Q. Give reason or explain:
Central Bank acts as a lender of the last resort.

Q. Which one of the following represents priority sector lending by commercial banks in India?

1. Lending to heavy industries
2. Lending to agriculture, small-scale industries and the weaker sections of the population
3. Lending to foreign companies
4. Lending to state governments in emergency situations like floods and droughts

Q. Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.

1. True
2. False

Q.

What Is the Reverse Repo Rate?

Q. Answer the following question.
What are the primary functions of commercial banks?

Q. Commercial banks act as the lender of last resort in the economy.

1. True
2. False

Q.

Write the full form of SEBI.

Q. The central bank is often involved in the policy-making of the economy.

1. True
2. False

Q. Which of the following are the functions of the RBI?

1. Banker to the Government
2. Bankers Bank
3. All of the above
4. Issuer of currency

Q. Acting as a , the central bank ensures that accounts are settled thus reducing the amount of labour and time involved.

1. clearing-house
2. reserving-house
3. power resource
4. central house

Q. Write Short Notes on.
Primary function of commercial banks.

Q. Mention four functions of a Central Bank.

Q. Credit is generally given at a high rate of interest by _____.

1. banks
2. money lenders
3. self help groups
4. cooperatives

Q. A foreign corporation may open its project office ___________.

1. with permission from the Reserve Bank of India
2. without permission from the Reserve Bank of India
3. both b and c
4. only for research work

Q. All but one, of the following statements is incorrect. Find the correct statement.

1. India is facing severe foreign exchange reserves crunch.
2. Balance of payments is a narrow concept than balance of trade.
3. Devaluation is the panacea for BOP problem.
4. The RBI is the lender of last resort for Indian public sector banks.