Tag: economics

Questions Related to economics

Bank rate is the rate at which the RBI extends credit to the ______________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. public

  2. foreign countries

  3. commercial banks

  4. agriculture

Show answer
Correct Option: C
Explanation:

Bank Rate is the rate at which the commercial banks avail loans from the Reserve Bank of India. (R.B.I.)

It is used as a quantitative tool to change the quantity of money supplied in the economy.

When RBI grants a loan to commercial banks and charges interest on it, it is called _________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Rapo rate

  2. Reverse Rapo rate

  3. Sweep stack rate, basic rate

  4. Bank rate

Show answer
Correct Option: D
Explanation:

A bank rate is the rate of interest which a central bank (RBI)  charges on the loans and advances that it extends to commercial banks and other financial intermediaries. RBI uses this tool to control the money supply.

Choose the correct answer form the alternatives given.
Who recently became the first woman chief of the State Bank of India ?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Arundhati Bhattacharya

  2. Shubhalakshmi Panse

  3. Vijaylakshmi Iyer

  4. Chanda Kochhar

Show answer
Correct Option: A
Explanation:

Arundhatiu Bhattacharya is an Indian Banker and currently the Chair-Managing  director of the  State Bank of India. She is the first woman to be the Chairperson of  State Bank of India. 

Banking ombudsman means.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. A person appointed by RBI to oversee the functioning of foreign banks

  2. Person appointed to recover dues from the defaulting borrowers

  3. A person to whom customer can approach for redressal of their grievances

  4. A person appointed to settle dispute between employees and management

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Correct Option: C

According to _____, people derive maximum satisfaction when they spend by making marginal utility equal in all goods.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. law of equi-marginal utility

  2. law of diminishing marginal utility

  3. law of diminishing marginal rate of substitution.

  4. law of demand

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Correct Option: A

_______ is the interest rate at which a central bank provides loans to other banks.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Repo rate

  2. Borrowing rate

  3. Bank rate

  4. Treasury rate

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Correct Option: C

Quantitative measures consist of ________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. repo rate and reverse repo rate

  2. open market operations

  3. variable reserve requirements

  4. all of above

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Correct Option: D

Bank rate is _______.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. the interest rate at which a central bank provides loans to other banks.

  2. the rate at which the bank discounts the bills and other instruments of other commercial banks.

  3. (A and (B)

  4. none of above

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Correct Option: A

In the Monetary Policy announced for the year 2006-07 the following announcements have been made- Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressure seen during the last 4 months of 2005-06 have eased off considerably. In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged.
What is Bank Rate?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. The rate of interest charged by public sector banks from the general public.

  2. The rate of interest on housing loans.

  3. The rate of interest on educational loan.

  4. The rate at which the RBI discounts the bills of commercial banks.

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Correct Option: D

Who is the custodian of national reserves of international currency?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. SBI

  2. IDBI

  3. RBI

  4. ICICI

Show answer
Correct Option: C