What is the reserve deposit ration (rdr)? a) the proportion of money RBI lends to commercial banks b) the proportion of total deposits commercial banks keep as reserves c) the total proportion of money that commercial banks lend to the customers d) none of the above

What is the reserve deposit ration (rdr)?
a) the proportion of money RBI lends to commercial banks
b) the proportion of total deposits commercial banks keep as reserves
c) the total proportion of money that commercial banks lend to the customers
d) none of the above
by

1 Answer

Answer :

b) the proportion of total deposits commercial banks keep as reserves
by

Related questions

What is the Cash Reserve Ratio (CRR)? a) the fraction of the deposits that commercial banks lend to the customers b) the fraction of the deposits that RBI must keep with commercial banks c) the fraction of the deposits that commercial banks must keep with RBI d) none of the above

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Last Answer : c) the fraction of the deposits that commercial banks must keep with RBI

What is 'Bank rate'? a) The rate at which commercial banks borrow money from RBI b) The rate at which commercial banks lend money to customers c) The rate at which commercial banks lend money to RBI d) none of the above

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Last Answer : a) The rate at which commercial banks borrow money from RBI Bank rate is the rate at which commercial banks can borrow money from the RBI. If the rate is higher, then taking money from RBI becomes difficult, so the banks will lend less to public. And vice-versa.

The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called - (1) Cash reserves (2) Deposit reserves (3) Excess reserves (4) Momentary reserves

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The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called (1) Cash reserves (2) Deposit reserves (3) Excess reserves (4) Momentary reserves

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Last Answer : (3) Purchase and sale of Government securities by RBI Explanation: Open Market Operation (OMO) refers to the buying and selling of government securities in the open market in order to expand or ... in the banking system. A central bank uses OMO as the primary means of implementing monetary policy.

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A commercial bank law creates credit only if it has - (1) Cash in the vault (2) Excess reserves (3) Permission of Reserve Bank of India (4) (4) Cooperation of other banks

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Last Answer : Central Bank of Country lends money to the commercial banks

Which one of the following statements is false ? (A) The Open Market Operations involve the sale or purchase of govt. securities by the Central Bank (B) The RBI manages longterm liquidity through rapos (C) The RBI manages longterm liquidity through Open Market Operations (D) Open Market Operations do not alter the total stock of govt. securities but change the proportion of govt. securities held by the RBI, Commercial Banks and Co-operative Banks

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Commercial banks create credit - (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Description : Commercial banks create credit - (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Last Answer : (4) on the basis of their deposits Explanation: Commercial banks create credit on the basis of their deposits. Credit creation is the multiple expansions of banks demand deposits. Whenever, ... will depend on the primary deposits and also on the amounts of minimum legal resource requirement.

Commercial banks create credit (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Description : Commercial banks create credit (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Last Answer :  on the basis of their deposits

Bank Rate refers to the interest rate at which - (1) Commercial banks receive deposits from the public (2) Central bank gives loans to Commercial banks (3) Government loans are floated (4) Commercial banks grant loans to their customers

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The ratio of a bank’s cash holdings to its total deposit liabilities is called the (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio

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Last Answer : a. it is a system of 12 central banks

As commercial banks keep more excess reserves, what happens to money creation?

Description : As commercial banks keep more excess reserves, what happens to money creation?

Last Answer : It decreases.

Scheduled banks are required to keep cash reserve with RBI, interms of _______ A. Section 24 of the Banking Regulation Act, 1949 B. Section 20 of the Banking Regulation Act, 1949 C. Section 42(i) of the RBI Act, 1934 D. Section 42 of Negotiable Instruments Act

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Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

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Last Answer : Reserve Bank of India

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If banks were only allowed to lend out money they actually had in their possession, (thus destroying credit's power).... would homes in the USA inevitably be sold for $50,000 instead of $200,000?

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Last Answer : Huh? A bad loan gives them less money to lend, not more. They make bad loans because of mismanagement.

What is the interest rate at which banks borrow money from Reserve Bank of India (RBI) called?

Description : What is the interest rate at which banks borrow money from Reserve Bank of India (RBI) called?

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Which of the following is not the function of commercial banks? (a) Issue of paper notes. (b) Credit control. © Acceptance of deposits (d) Advancing loans.

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Last Answer : (a) Issue of paper notes.

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Description : Regional Rural Banks arc sponsored by (1) Nationalized Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

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Last Answer :  Nationalised Commercial Bank

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Last Answer : Answer- c

Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future? (A) Bombay Stock Exchange (BSE) (B) Indian Banks Association (IBA) (C) Securities Exchange Board of India (SEBI) (D) Reserve Bank of India (RBI)

Description : Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future? (A) Bombay Stock Exchange (BSE) (B) Indian Banks ... (IBA) (C) Securities Exchange Board of India (SEBI) (D) Reserve Bank of India (RBI)

Last Answer : Answer: Reserve Bank of India (RBI)

What is the currency deposit ratio (cdr)? a) ratio of money held by the public in currency to that of money held in bank deposits b) ratio of money held by public in bank deposits to that of money held by public in currency c) ratio of money held in demand drafts to that of money held in treasury bonds d) none of the above

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Last Answer : a) ratio of money held by the public in currency to that of money held in bank deposits

7. The monetary base is composed of: a. gold and silver b. currency only c. currency and reserves d. currency and checkable deposits

Description : 7. The monetary base is composed of: a. gold and silver b. currency only c. currency and reserves d. currency and checkable deposits

Last Answer : c. currency and reserves

Assume that the required ratio is 10 percent and bank receives $1,000 deposit. What is the excess reserves ? (a) $100 (b) $9,000 (c) $900 (d) $10,000

Description : Assume that the required ratio is 10 percent and bank receives $1,000 deposit. What is the excess reserves ? (a) $100 (b) $9,000 (c) $900 (d) $10,000

Last Answer : (c) $900

i. Accepting deposits is the secondary function of Banks. ii. Businessman opens Fixed Deposit Account.

Description : i. Accepting deposits is the secondary function of Banks. ii. Businessman opens Fixed Deposit Account.

Last Answer : Correct the underlined word and rewrite the following sentence: i. Accepting deposits is the ... /account holder can overdraw from his account.

Banks can not generally accept interest-free deposits. which of the following is an exception to this rule? A. Current Account B. Savings Account of Minors C. Deposit from Minority groups D. BSBDA E. None of the Above

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Last Answer : A. Current Account Explanation: Banks cannot accept interest free deposits other than in current account.

What is difference between banks & HFCs? A. HFCs cannot accept demand deposits B. It cannot issue cheques drawn on itself C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs D. All of the Above E. None of the Above

Description : What is difference between banks & HFCs? A. HFCs cannot accept demand deposits B. It cannot issue cheques drawn on itself C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs D. All of the Above E. None of the Above

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5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. discounts b. federal funds c. reserves d. collateral

Description : 5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. discounts b. federal funds c. reserves d. collateral

Last Answer : c. reserves

Differentiate between Reserve Bank of India RBI and Commercial Bank. -SST 10th

Description : Differentiate between Reserve Bank of India RBI and Commercial Bank. -SST 10th

Last Answer : Difference between Reserve Bank of India and Commercial Bank :-

Regarding money supply situation in India it can be said that the : (1) Currency with the public is inconvertible only. (2) Currency with the public is less than the deposits with the banks. (3) Currency with the public is more than the deposits with the banks. (4) Currency with the public is almost equal to the deposits with banks.

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Last Answer : (2) Currency with the public is less than the deposits with the banks. Explanation: Money supply in India includes the following: (i) Currency with the public: (ii) Demand deposits and time ... to total supply of money has been increasing with reciprocal diminution in currency held by the public.

Regarding money supply situation in India it can be said that the : (1) Currency with the public is inconvertible only. (2) Currency with the public is less than the deposits with the banks. (3) Currency with the public is more than the deposits with the banks. (4) Currency with the public is almost equal to the deposits with banks.

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Last Answer : Currency with the public is less than the deposits with the banks. 

The RBI can increase the money supply in the market by: a) selling government securitiesb) buying government securitiesc) borrowing money from commercial banksd) none of the above

Description : The RBI can increase the money supply in the market by: a) selling government securities b) buying government securities c) borrowing money from commercial banks d) none of the above

Last Answer : b) buying government securities

What do banks do with the deposits they accept from customers ? -SST 10th

Description : What do banks do with the deposits they accept from customers ? -SST 10th

Last Answer : Banks use most of the deposits to extend loans to people.

Marketing in Banks is required for ? 1. Getting new customers 2. Retaining existing customers 3. Lending 4. D) Accepting of deposits 5. All of these

Description : Marketing in Banks is required for ? 1. Getting new customers 2. Retaining existing customers 3. Lending 4. D) Accepting of deposits 5. All of these

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