106. Bank Rate refers to the interest rate at which-
(A) Commercial banks receive deposits from the public
(B) Central bank given loans to Commercial banks
(C) Government loans are floated
(D) Commercial banks grant loans to their customers
107. The smaller the Cash Reserve Ratio, the scope for lending by banks is:
108. Commercial banks create credit
(A) On the basis of their securities
(B) On the basis of their assets
(C) On the basis of their stocks
(D) On the basis of their deposits
109. Bank money refers to
(A) Currency notes
(C) Gold bullions
110. If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should
(A) Lower cash reserve ratio
(B) Raise discount rates
(C) Sell government securities
(D) All of the above
111. ‘Money’ is an example of-
(A) Sunk capital
(B) Floating capital
(C) Concrete capital
(D) Social capital
112. Which one is not a function of money?
(A) Transfer of value
B) Store of value
(C) Price stabillisation
(D) Value measurement
113. Which term is not related to banking?
(D) Fixed Deposits
114. Scheduled Banks have to be registered with-
(C) Finance Ministry
115. Which natioalised bank of India has a shining star as its emblem?
(A) Syndicate Bank
(B) Indian Bank
(C) Bank of India
(D) Bank of Baroda
116. A high Statutory Liquidity Ratio (SLR)
(A) Restricts lending
(B) Increases supply of cash
(C) Provides funds to the state
(D) Increases the strength of the banks
117. The major objective of monetary policy is to-
(A) Increase government’s tax revenue
(B) Revamp the Public Distribution System
(C) Promote economic growth with price stability
(D) Weed out corruption in the economy
118. Commercial banks lend to which of the following Priority sectors?
(A) Heavy Industries
(B) Agriculture, Small scale industries
(C) Foreign Companies
(D) State government in emergency situation
119. “Smart Money” term is used for-
(A) Credit card
(B) Internet Banking
(D) Cash with public
120. Open Market Operations refer to-
(A) Borrowings by Scheduled banks from RBI
(B) Lending by Commercial banks to industry
(C) Purchase and sale of Government securities by RBI
(D) Deposit mobilization
121. The rate at which RBI gives short term loan to commercial banks is called-
(A) Repo rate
(B) Reverse Repo rate
(C) Bank rate
(D) Cash Reserve rate
122. Money transfer through mobile is called __________.
123. What is the role of “Ombudsman” in a bank?
(A) To provide quality and speedy redressal ofgrievances of customers.
(B) To provide suggestions for innovativeschemes in the banks.
(C) To inspect the internal working of the branches.
(D) To monitor the poverty alleviation programmes under taken by or implemented by the bank.
124. The headquarters of RBI is in-
125. Which one is not included in Non Banking Financial Institutions (NBFIs)?
126. If cash reserve ratio decreases, credit creation will___.
(C) Does not change
(D) First decreases than increases
127. The SLR is determined by the RBI. SLR stands for-
(A) States Leverage Return
(B) Savings Lease Rate
(C) Statutory Liquidity Ratio
(D) Safe Legal Range
128. Which institution in India acts as ‘lender of
the last resort’?
(A) Finance Ministry
(B) Reserve Bank of India
(D) Currency Printing Presses
129. Which of these is not an Indian Bank?
(A) Axis Bank
(B) HDFC Bank
(C) ICICI Bank
D) HSBC Bank
130. At which rate, Reserve Bank of India borrows
money from commercial banks?
(A) Bank Rate
(B) Repo Rate
(C) Reverse Repo Rate
(D) Statutory Liquidity Rate
131. Which of the following is not true about a Demand Draft?
(A) It is a negotiable instrument.
(B) It is a banker’s cheque.
(C) It may be dishonoured for lack of funds.
(D) It is issued by a bank.
132. Which amongst the following is not a component of monetary policy in India?
(A) Repo rate
(B) Moral suasion
(C) Credit Rationing
(D) Public Debt
133. Wh ich one o f the fo l lowing is not an instrument of credit control in India?
(A) Rationing of credit
(B) Direct Action
(C) Open Market operations
(D) Variable cost reserve ratios
134. Which of the following rate is charged by banks to their most credit worthy customers?
(A) Prime Lending Rate
(B) Statutory Liquidity Rate
(C) Bank Rate
(D) Repo Rate
135. Medium term loans are provided for a period of _____.
(A) 1 year to 2 years
(B) 15 months to 3 years
(C) 15 months to 4 years
D) 1 year to 3 years
136. Wh ich among the fo l lowing is not an instrument of fiscal policy?
(B) Public expenditure
(C) Public debt
(D) Credit Rationing
137. ___________ is an a lternative way of representing the production function.
(A) The Short Run
(B) The Long Run
(D) Average product
138. What is the minimum base rate fixed by RBI?
(A) 8.30 %
B) 8.25 %
(C) 9.30 %
D) 10.00 %
139. What is the full form of CRR?
(A) Cash Return Ratio
(B) Cash Reserve Ratio
(C) Cash Revenue Ratio
(D) Cash Return Reserve
140. Who decides Bank Rate in India?
(A) Finance Minister of India
(B) President of India
(C) Reserve Bank of India
(D) State Bank of India
420 Economics Rakesh Yadav Readers Publication Pvt. Ltd.
1. Expenditure, taxation and loan taking policies of government are called as-
(A) Fiscal Policy
(B) Monetary Policy
(C) Bank Policy
(D) Tax Policy