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Call Money and T- Bill

is the offici...

Question

____________ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bill held by commercial Banks.

A

CRR

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B

SLR

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C

Bank rate

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D

Interest rate

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Solution

The correct option is B Bank rate
Bank rate is the official minimum rate at which the Central Bank of a country (RBI in India) is prepared to rediscount approved bills held by commercial banks in the country.

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Q. Bank Rate is the rate at which central bank discounts the bills of commercial banks.

The rate at which the central bank lends money to member commercial banks against approved securities is known as

Q. Cash reserve Ration (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank of a country. CRR ___

Q. State whether the following statements are TRUE or FALSE.

1. Credit rationing is quantitative credit control measure of Central bank.
2. Regulation of Consumer Credit is a quantitative credit control measure of Central Bank.
3. Bank Rate is the selective credit control measure used by the Central Bank of the country.
4. Central Bank also performs commercial banking business.
5. The main objective of a Central Bank is to earn profit.

Q. Fill in the blanks with appropriate alternatives given in the brackets:
___ is the rate at which Central Bank re-discounts bills of exchange from commercial banks.
(Bank rate, Cash Reserve Ratio, Growth rate)

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