Which among the following statements is -are correct about Ways And Means Advances WMA and Overdraft-1- WMAs are short- term loans taken by Government from RBI-2- Both state and central government can take it-3- RBI charges bank rate as rate of interest for such loans-4- These are repayable in each case not later than six months from the date of making that advance-5- Any amount drawn by a state below the limit WMA is an overdraft-Codes-

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Standard XI

Accountancy

Banking Transactions

Which among t...

Question

Which among the following statement(s) is /are correct about Ways And Means Advances (WMA) and Overdraft:-

Codes :

1, 2 and 3 only

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1, 2, 3 and 4 only

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2, 3 and 5 only

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1, 2, 3 and 5 only

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Solution

The correct option is A
1, 2 and 3 only

These are repayable not later than three months and any amount in excess of WMA is known as overdraft therefore statements 4 and 5 are incorrect. All remaining statements are correct.

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Similar questions

Q. Choose the correct option.

Statement I: The RBI carries out the general banking activities of both the central government and for almost all the state governments in India.
Statement II: The Government of India can take loans from the RBI.

Q. Q. With reference to the Ways and Means Advances (WMA), which of the following statements is/are correct?

1. Its long term loan facility provided by RBI to the Government.
2. The facility is available to both Union Government and state Government.
3. RBI charges interest equal to the repo rate on loans given under WMA.

Select the correct answer using the codes given below:

Q. वेज़ एंड मीन्स एडवांसेज (WMA) के संदर्भ में, निम्नलिखित में कौन सा/से कथन सही है/हैं?

1. आरबीआई द्वारा सरकार को दी गई दीर्घकालिक ऋण सुविधा।
2. यह सुविधा केंद्र सरकार और राज्य सरकार दोनों के लिए उपलब्ध है।
3. WMA के तहत दिए गए ऋण पर RBI रेपो दर के बराबर ब्याज लेता है।

नीचे दिए गए कूट का उपयोग करके सही उत्तर चुनें:

Q. Name the monetary measure indicated In the following statements. Also indicate, whether the following measures will be adopted during excess demand or deficient demand.
(i) RBI starts selling Government securities to the public.
(ii) Instead of

80

, now

90

of the security amount will be given as loan.
(iii) It resulted in increase in interest rate charged by commercial bank from the borrowers.
(iv) RBI advised SBI to stop advertising for home loans in order to discourage lending.
(v) Central bank reduces the amount of time and demand deposits required to be kept as reserves.
(vi) RBI instructed not to advance loans to people with income above

R s . 5

lakhs per annum.

Consider the following statements in respect of the Fiscal Responsibility and Budget Management Act:
1.It lays down limits for revenue deficit and fiscal deficit as a percentage of GDP.
2.It applies to both Central and State Governments.
3.It does not permit the Central Government to give guarantees to loans raised by PSUs and State Governments beyond 0.5 per cent of GDP.
4.It prescribes an upper limit for the liabilities of the government.
Which of these statements are correct?

Q. Which among the following terms can be used for the loans availed by the Government of India from the RBI?

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Which among the following statement(s) is /are correct about Ways And Means Advances (WMA) and Overdraft:- Codes :

The correct option is A 1, 2 and 3 only These are repayable not later than three months and any amount in excess of WMA is known as overdraft therefore statements 4 and 5 are incorrect. All remaining statements are correct.

Which among the following statement(s) is /are correct about Ways And Means Advances (WMA) and Overdraft:-

Codes :

The correct option is A
1, 2 and 3 only

These are repayable not later than three months and any amount in excess of WMA is known as overdraft therefore statements 4 and 5 are incorrect. All remaining statements are correct.