MCQs - Banking Commerce Notes | EduRev

Crash Course of Macro Economics -Class 12

Commerce : MCQs - Banking Commerce Notes | EduRev

The document MCQs - Banking Commerce Notes | EduRev is a part of the Commerce Course Crash Course of Macro Economics -Class 12.
All you need of Commerce at this link: Commerce

Q.1 Banks are able to crease credit many times more than initial deposit through _____

(a) Secondary deposits
(b) Advancing loans
(c) Accepting deposits
(d) overdraft facility

Ans: A

Q.2 
Which of the following is bank money ?

(a) Coins
(b) Currency
(c) Cash reserves of banks
(d) Demand deposits in banks
Ans: D

Q.3 The creation of _____ is called credit creation.

(a) Time deposits
(b) Primary deposits
(c) Secondary deposits
(d) None of these
Ans: C

Q.4 
Initial deposits made by the people from their own resources are called ____

(a) Time deposits
(b) Primary deposits
(c) Secondary deposits
(d) None of these
Ans: B

Q.5 
Commercial banks keep a small fraction of their demand deposits as reserves to meet the cash requirements of their depositors.  This small fraction is known as

(a) CRR
(b) LRR
(c) SLR
(d) None of these
Ans: B

Q.6 
Commercial banks have to keep a minimum percentage of their deposits with the central bank.  This minimum percentage is known as

(a) CRR
(b) LRR
(c) SLR
(d) None of these
Ans: A

Q.7 
Which of the following is not concerned with banking organisation ?

(a) Bank rate
(b) Fiscal deficit
(c) Credit creation
(d) Cash reserve ratio
Ans: B

Q.8 
In India, operative cash reserves are known as :

(a) CRR
(b) SLR
(c) vault cash
(d) none of these
Ans: C

Q.9 
All scheduled banks in India are
(a) owned by the government of India.
(b) owned by corporations.
(c) owned by business houses(d) not nationalised banks.
Ans: A


Q.10 Manager of Bank of India, Parliament Street: “I am in dire need for funds to meet my short-term needs for 5 Days.” Manager of Syndicate Bank, Karol Bagh: “Why don’t you borrow from the Central bank to meet your this need for 5 days only”

Which of the interest rate will be charged by the Central bank ?

(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate
(d) margin Requirements
Ans: A

Q.11 
Shweta :I am not clear about what happens to my money saved in the bank.  Do you know about it ?  Upasana    : Yes I know, the bank gives loans from this money collected with it.Shweta : But does it lend all the money to the borrowers ?

Upasana: No it cannot do so.  It has to legally and compulsorily keep some percentage of its deposits in the form of cash and liquid assets as reserves. 

Which of the reserve ratio is Upasana sharing with Shweta?

(a) CRR
(b) LRR
(c) SLR
(d) None of these
Ans: B

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