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- 1. Multiple Choice
Institution that accepts deposits for lending purpose is known as __________
Commercial Bank
Central Bank
Government
Public
- 2. Multiple Choice
Who circulates all mint and one rupee notes in India?
Ministry of Finance
RBI
Ministry of External Affairs
State Government
- 3. Multiple Choice
In order to encourage investment in the economy, the Central Bank may ________
Reduce Cash Reserve Ratio
Increase Cash Reserve Ratio
Sell Government securities in the open market
Increase Bank Rate
- 4. Multiple Choice
The central bank can increase the availability of credit by:
Raising reverse repo rate
Raising repo rate
Buying government securities
Selling government securities
- 5. Multiple Choice
Demand deposits include
Saving account deposits and fixed deposits
Saving account deposits and current account deposits
Current account deposits and fixed deposits
All type of deposits
- 6. Multiple Choice
Which one is the difficulty of the Barter System?
Lack of Double Coincidence
Difficulty of Division of the Goods
Lack of General Acceptable Measure of Value
All the above
- 7. Multiple Choice
Which one is the Bank of the Public?
Commercial Bank
Central Bank
Both (a) and (b)
None of the above
- 8. Multiple Choice
Credit Multiplier is:
1/CRR
Cash X 1/CRR
Cash x CRR
None of these
- 9. Multiple Choice
Name the credit control method which refers to difference between the amount of loan and market value of the security offered by the borrower against the loan.
Moral Suasion
Margin Requirement
Legal Reserve Requirement
Direct Action
- 10. Multiple Choice
The Value of credit multiplier will be high when Legal Reserve Ratio is:
Low
High
Zero
Infinity
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