Money and Banking

Institution that accepts deposits for lending purpose is known as __________

• Commercial Bank

• Central Bank

• Government

• Public

Who circulates all mint and one rupee notes in India?

• Ministry of Finance

• RBI

• Ministry of External Affairs

• State Government

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

The central bank can increase the availability of credit by:

• Raising reverse repo rate

• Raising repo rate

• Buying government securities

• Selling government securities

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

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

Which one is the Bank of the Public?

• Commercial Bank

• Central Bank

• Both (a) and (b)

• None of the above

Credit Multiplier is:

• 1/CRR

• Cash X 1/CRR

• Cash x CRR

• None of these

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

The Value of credit multiplier will be high when Legal Reserve Ratio is:

• Low

• High

• Zero

• Infinity