Q1. From the given options, bring out the one which is not a
function/power of Reserve Bank of India?
(a) To assume the responsibility of meeting
directly or indirectly all reasonable demands for accommodation
(b) To hold cash
reserves of the commercial banks and make available financial accommodation to
them
(c) To enjoy monopoly of the note issue
(d) None of the above
Q2. Many a times we read in the newspapers about margin requirements.
From the given options, find out the one which correctly indicates margin
requirement?
(a) Margin requirements aim at the regulation
of the volume of credit as well as flow of the credit
(b) Margin requirements imply that every bank
has to keep certain minimum cash reserves with the Reserve Bank of India
(c) Margin requirements imply that every bank
has to keep certain proportion of its total deposits in the form of cash with
it self
(d) Margin Requirement
is the percentage of marginable securities that an investor must pay for with
his/her own cash
Q3. What will be the impact on the cash reserves of commercial banks of
RBI conducts a sale of securities?
(a) Increase
(b) Decrease
(c) Remain constant
(d) Increase or decrease
Q4. Which among the following is a major qualitative control measure in India?
(a) Bank Rate Policy
(b) Open Market Operations
(c) Reserve Ratio Requirements
(d) Margin
Requirements
Q5. Many a times we read in the financial newspapers that Reserve Bank of
India is “Lender of Last Resort (LOLR)” in India. Which among the following
statement gives the most correct definition of “Lender of Last Resort”?
(a) If a person or firm which is eligible to
get a loan, does not get if from any commercial bank, may approach to Reserve
Bank of India for loan.
(b) If the state governments are in crisis
and need money for short term, they can approach RBI for this purpose.
(c) If a commercial bank
is in crisis, it many place its reasonable demand for accommodation to Reserve
Bank of India.
(d) A scheduled commercial bank meets all of
its demands in all weathers from Reserve Bank of India
Q6. (The figures in this questions are imaginary). We suppose that Cash Reserve
Ratio (CRR) in country’s economy is 10%. The banking system wish a cash
deposits of Rs. 1000 Crore, creates total deposits of Rs. 10,000 Crores. The
Reserve Bank wishes that bank should create more deposits. Which among the
following step will be taken by the Reserve Bank?
(a) It will lower the
Cash Reserve Ratio
(b) It will raise the Cash Reserve
Ratio
(c) It will increase the Margin Requirements
(d) It will start selling Government
Securities
Q7. Many a times we read in the newspapers that RBI takes certain steps
to curb the menace of Inflation. In this context, which among the following
will not help RBI in controlling the inflation in the country?
(a) An increase in the Bank Rate
(b) An increase in the Reserve Ratio
Requirements
(c) A purchase of
securities in the open market
(d) Rationing of the credit
Q8. We suppose that Reserve Bank of India would like to increase the cash
Reserves of the commercial banks. Which among the following would be most
appropriate action of the RBI to achieve this aim?
(a)RBI would release gold form its
reserves
(b) RBI would raise the reserve ratio
(c) RBI would buy the
bonds in the open market
(d) RBI will stop the transactions which
involve the bills of exchange
Q9. Which among the following is a incorrect statement?
(a) The Reserve Bank of India has the special
powers to control and regulate the commercial banking system
(b) A rise in the bank
rate is a strong anti-deflationary monetary tool
(c) Minimum Reserve Requirements are fixed to
ensure the liquidity and solvency of individual commercial banks
(d) Reserve Ratio Requirements is a quicker
method than bank rate and OMO (Open Market Operations) in general credit
regulations
Q10. Since which year, Reserve Bank of India is using the Selective Credit
Control measures to control the amount of bank advances against the commodities
having limited supply?
(a) 1949
(b) 1956
(c) 1969
(d) 1973
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