Q185. In the context of the Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to control the amount of advances the banks can create. 2. To make the people’s deposits with banks safe and liquid. 3. To prevent the commercial banks from making excessive profits. 4. To force the banks to have sufficient vault cash to meet their day-to-day requirements. Select the correct answer using the code given below.

The Reserve Bank of India regulates the commercial banks in matters of: 1. liquidity of assets 2. branch expansion 3. merger of banks 4. winding-up of banks Sel

Consider the following statements regarding Reserve Bank of India: 1. It is a banker to the Central Government 2. It formulates and administers monetary policy

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following? 1. Other banks retain their deposits with the RBI. 2. The RBI

The money multiplier in an economy increases with which one of the following?

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following? 1. Lending to trade and industry bodies when they

When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units 2. To supply credit to small and marginal

With reference to inflation in India, which of the following statements is correct?

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public Revenue Which of the above is/are comp

The sum of which of the following constitutes Broad Money in India? 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks 4. Oth

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

What is/are the purpose/purposes of the Marginal Cost of the Fund-Based Lending Rate (MCLR) announced by RBI? 1. These guidelines help improve the transparency

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increa

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The corre

What is/are the purpose/purposes of ‘District Mineral Foundations’ in India? 1. Promoting mineral exploration activities in mineral-rich districts 2.

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? 1. It is a Public

‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for:

‘Basel III Accord’ or simply ‘Basel III’ often seen in the new, seeks to:

With reference to Indian economy, consider the following statements: 1. The rate of growth of Real Gross Domestic Product has steadily increased in th

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Re

Convertibility of rupee implies:

The problem of international liquidity is related to the nonavailability of: