Test: Reserve Bank Of India - 1


30 Questions MCQ Test Economics for CA CPT | Test: Reserve Bank Of India - 1


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This mock test of Test: Reserve Bank Of India - 1 for CA Foundation helps you for every CA Foundation entrance exam. This contains 30 Multiple Choice Questions for CA Foundation Test: Reserve Bank Of India - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Reserve Bank Of India - 1 quiz give you a good mix of easy questions and tough questions. CA Foundation students definitely take this Test: Reserve Bank Of India - 1 exercise for a better result in the exam. You can find other Test: Reserve Bank Of India - 1 extra questions, long questions & short questions for CA Foundation on EduRev as well by searching above.
QUESTION: 1

Which of these is a Quantitative Method of Credit control?

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QUESTION: 2

Monitory policy is announced in India by _________

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QUESTION: 3

The ‘lender of last resort’ means. 

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QUESTION: 4

When the bank rate increases the demand for loans _______:

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QUESTION: 5

Monetary policy includes:

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The Monetary Policy regulates the supply of money and the cost and availability of credit in the economy. It deals with both the lending and borrowing rates of interest for commercial banks. The Monetary Policy aims to maintain price stability, full employment and economic growth.

QUESTION: 6

Which of the following is not a qualitative method of credit control?

Solution:

Qualitative or selective measures are those which are directed towards the particular use of credit and not its total volume in other words qualitative of selective measures are generally meant to regulate credit for specific purposes here except changes in cash reserve ratio all other are are qualitative measures as they are subject to regulate money supply for particular purpose while CRR is one of the quantitative measures which is meant for controlling the credit it the entire banking system hence option B is the correct answer

QUESTION: 7

 Which of the following methods cannot be used as an instrument of quantitative control of credit by the central Bank?

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QUESTION: 8

Which system of issue of currency note is followed by RBI?

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QUESTION: 9

 The Reserve Bank of India issues all currency notes except:

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QUESTION: 10

The RBI can decrease the bank credit by:

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QUESTION: 11

Ten rupee note has been issued by ______:

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QUESTION: 12

 Who is the custodian of national reserves of international currency?

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QUESTION: 13

__________ is the Banker’s Bank in India:

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QUESTION: 14

Who is the custodian of National reserves of international currency?

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QUESTION: 15

Rs. 10 note is issued by:

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QUESTION: 16

Which of the following is not a quantitative measure of credit control?

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QUESTION: 17

 RBI was Nationalized in :

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QUESTION: 18

Which of the following is not a selective credit control method :

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The reserve requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank.

QUESTION: 19

The Reserve Bank of India was nationalized in the year:

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QUESTION: 20

 The CRR is determined in India by:

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QUESTION: 21

What is Bank rate?

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QUESTION: 22

 The rate at which discounting of bills of first class is done by RBI is called

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A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans. Managing the bank rate is a method by which central banks affect economic activity. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.

QUESTION: 23

Which of the following is not qualitative credit control measure of the RBI?

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QUESTION: 24

The portion of total deposit which a commercial bank has to keep with itself in liquid assets is known as 

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QUESTION: 25

_________ control affect indiscriminately all sectors of the economy.

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QUESTION: 26

Which of the following of credit control?

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Under this system the Central Bank controls credit by changing the Cash Reserves Ratio. For example—If the Commercial Banks have excessive cash reserves on the basis of which they are creating too much of credit which is harmful for the larger interest of the economy. So it will raise the cash reserve ratio which the Commercial Banks are required to maintain with the Central Bank.
This activity of the Central Bank will force the Commercial Banks to curtail the creation of credit in the economy. In this way by raising the cash reserve ratio of the Commercial Banks the Central Bank will be able to put an effective check on the inflationary expansion of credit in the economy.
Similarly, when the Central Bank desires that the Commercial Banks should increase the volume of credit in order to bring about an economic revival in the country. The Central Bank will lower down the Cash Reserve ratio with a view to expand the cash reserves of the Commercial Banks.
With this, the Commercial Banks will now be in a position to create more credit than what they were doing before. Thus, by varying the cash reserve ratio, the Central Bank can influence the creation of credit.

QUESTION: 27

Central Bank of a country does not deal with ________.

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QUESTION: 28

 Identify the selective instruments used by RBI for Controlling Credit.

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QUESTION: 29

 Bank Rate is also known as _______.

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Bank rate, also referred to as the discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. Whenever a bank has a shortage of funds, they can typically borrow from the central bank based on the monetary policy of the country.

QUESTION: 30

Monetary Policy in India is regulated by :

Solution:

The Reserve Bank of India (RBI) uses the monetary policy to regulate liquidity in a manner that balances inflation and help in GDP growth and development.

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