Commercial Banks and Central Bank

Interest is...

• A reward for saving and a reward for borrowing

• A cost of saving and a reward for borrowing

• A cost of borrowing and a cost of saving

• A reward for saving and a cost of borrowing

A central bank usually performs which combination of the following functions...(select 2)

• It issue notes and coins for the nations currency and is where the king or queen holds their money

• It manages the nation's gold reserves and manages payments to and from the government

• It prints money for the banks to store until people withdraw it and issues the notes and coins

• It issue notes and coins for the nations currency and is the lender of last resort to the banking system

Governments can raise money to finance public spending through the sale of...

• James

• Bonds

• Shares

• Stocks

What is the reserve deposit ration (rdr)?

• the proportion of money RBI lends to commercial banks

• the proportion of total deposits commercial banks keep as reserves

• the total proportion of money that commercial banks lend to the customers

What is the reserve deposit ration (rdr)?

• the proportion of money RBI lends to commercial banks

• the proportion of total deposits commercial banks keep as reserves

• the total proportion of money that commercial banks lend to the customers

Which bank is called lender of last resort?

• Commercial bank

• Agricultural bank

• Central bank

Which bank enjoys monopoly power of Note issue?

• NABARD

• Commercial Bank

• Central Bank

Deposits which are payable after the expiry of a fixed period are called -

• time deposits.

• demand deposits.

• NONE

The rate at which central bank lends to commercial banks is called?

• SLR

• CRR

• bank rate

What possess general acceptability?

• Bank draft

• Money

• Bill of exchange