Test: Reserve Bank Of India - 3


15 Questions MCQ Test Economics for CA CPT | Test: Reserve Bank Of India - 3


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QUESTION: 1

 Which one of the following measures is not adopted by RBI for controlling credit in India?

Solution:

Cash deposit ratio refers to that portion of total deposit which a commercial bank has to keep with the central bank in the form of cash deposit

QUESTION: 2

Lender of the last resort means :

Solution:
QUESTION: 3

 Rs. 10 note is issued by:

Solution:

The Indian 10-rupee banknote (₹10) is a common denomination of the Indian rupee. The ₹10 note was one of the first notes introduced by the Reserve Bank of India as a part of the Mahatma Gandhi Series in 1996, which is presently in circulation

QUESTION: 4

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

Solution:
QUESTION: 5

Which of the following Bank enforces the provisions of Foreign Exchange Management Act in India?

Solution:
QUESTION: 6

The rate at which the RBI rediscounts the Bills of Commercial banks is known as. 

Solution:

Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial / cooperative banks, development banks etc. Such loans are given out either by direct lending or by rediscounting (buying back) the bills of commercial banks and treasury bills. Thus, bank rate is also known as discount rate. Bank rate is used as a signal by the RBI to the commercial banks on RBI’s thinking of what the interest rates should be.
Impact of Bank Rate
When RBI increases the bank rate, the cost of borrowing for banks rises and this credit volume gets reduced leading to decline in supply of money. Thus, increase in Bank rate reflects tightening of RBI monetary policy.

QUESTION: 7

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

Solution:

SLR means liquid statutory ratio. Every bank has to keep that amount of money every time. because customers can withdrew money any time. Bank can not give that money on loan or for any other purpose.

QUESTION: 8

________ is the rate at which the Central Bank discounts the bill of Commercial Banks.

Solution:
QUESTION: 9

Bank Rate is also known as _______.

Solution:
QUESTION: 10

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

Solution:
QUESTION: 11

CRR according to July 2013, was:

Solution:
QUESTION: 12

What is Bank rate?

Solution:
QUESTION: 13

 The CRR is determined in India by:

Solution:
QUESTION: 14

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

Solution:
QUESTION: 15

The Reserve Bank of India issues all currency notes except:

Solution:

Under Section 22 of the Reserve Bank of India Act, RBI has sole right to issue currency notes of various denominations except one rupee notes.
The One Rupee note is issued by Ministry of Finance and It bears the signatures of Finance Secretary, while other notes bear the signature of Governor RBI.
However RBI is the only source of legal tender money because distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government.

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