Q198. When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

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

The lowering of Bank Rate by the Reserve Bank of India leads to:

An increase in the Bank Rate generally indicates that the:

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

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

In the context of Indian economy, ‘Open Market Operations’ refers to:

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

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

If the interest rate is decreased in an economy, it will:

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 c

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?

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

Which one of the following statements correctly describes the meaning of legal tender money? (a) The money which is tendered in courts of law to defray the fee

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

Which of the following is not included in the assets of a commercial bank in India?

Supply of money remaining the same when there is an increase in demand for money, there will be:

Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

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

Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money(M3) in

With reference to ‘Urban Cooperative Banks’ in India consider the following statements: 1. They are supervised and regulated by local boards set up by

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

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?

What is the importance of the term “Interest Coverage Ratio” of a firm in India? 1. It helps in understanding the present risk of a firm that a bank i

Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) del

The Service Area Approach was implemented under the purview of

Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data

What was the purpose of the Inter-Creditor Agreement signed by Indian banks and financial institutions recently?