TEST SERIES - 55 (I)

Many times we read in newspapers that the RBI has revised certain rates/ratios under LAF. What is the full form of LAF?

• Liquidity Adjustment Facility

• Legal Adjustment Facility

• Long-term Achievement Facility

• Legal Adjustment Formality

RBI’s open market operation transactions are carried out with a view to regulate

• Liquidity in the economy

• Prices of essential commodities

• Inflation

• All of the above

The functions of the Lead Bank are performed by

• State Bank of India

• Reserve Bank of India

• Any Bank

• A bank designed for this purpose

Which of the following rates/ratios is not covered under the Monetary and Credit Policy of RBI?

• Bank Rate

• Repo Rate

• Cash Reserve Ratio

• Exchange Rate of Foreign Currencies

The Central Banking functions in India are performed by the

• Punjab National Bank

• Central Bank of India

• State Bank of India

• Reserve Bank of India

The Tarapore Committee was appointed by the RBI to examine the issue of

• Capital Account Convertibility of the rupee

• Current Account Convertibility of the rupee

• Both (a) and (b)

• Trade Sector Reforms

Which one of the following is not a function of Reserve Bank of India?

• Credit control

• As apex body of scheduled commercial banks

• Formation of monetary policy

• Credit creation

The National Housing Bank (NHB) was set up in India as a whollyowned subsidiary of which one of the following?

• State Bank of India

• Reserve Bank of India

• ICICI Bank

• Life Insurance Corporation of India

Bank Rate is the rate

• At which banks lend money to the depositors

• At which Reserve Bank of India lends money to commercial Banks

• The rate at which banks lend to the Industrial Financial Institutions

• None of the above

Non-Performing Assets (NPA) in commercial banks mean

• Bank deposits which are not invested

• Capital assets not in use

• Loans in which interest or principal amount is not recovered

• Loan interest rate loans