Bank rate is the rate of interest - (1) at which public borrows money from Commercial Bank (2) at which public borrows money from RBI (3) at which Commercial Banks borrow money from RBI (4) at which Commercial Banks borrow money from public

Bank rate is the rate of interest - (1) at which public borrows money from Commercial Bank (2) at which public borrows money from RBI (3) at which Commercial Banks borrow money from RBI (4) at which Commercial Banks borrow money from public
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(3) at which Commercial Banks borrow money from RBI Explanation: Bank Rate is the interest rate at which a nation’s central bank lends money to domestic banks. Managing the bank rate is a preferred method by which central banks can regulate the level of economic activity.
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Bank rate is the rate of interest: (1) At which public borrows money from Commercial Banks (2) At which public borrows money from R.B.I. (3) At which Commercial Banks borrow money from R.B.I. (4) At which Commercial Banks borrow money from the public

Description : Bank rate is the rate of interest: (1) At which public borrows money from Commercial Banks (2) At which public borrows money from R.B.I. (3) At which Commercial Banks borrow money from R.B.I. (4) At which Commercial Banks borrow money from the public

Last Answer : (3) At which Commercial Banks borrow money from R.B.I. Explanation: Bank Rate is the interest rate at which a nation's central bank lends money to domestic banks. Often these loans are ... activity. Regulation of the economy through management of the money supply is referred to as monetary policy.

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

Description : 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

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.

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?

Last Answer : Repo Rate

By increasing the 'Bank Rate', the RBI can: a) provide incentives to commercial banks to lend more to public b) provide incentives to commercial banks to lend less to public c) increase the money supply in the market d) none of the above

Description : By increasing the 'Bank Rate', the RBI can: a) provide incentives to commercial banks to lend more to public b) provide incentives to commercial banks to lend less to public c) increase the money supply in the market d) none of the above

Last Answer : b) provide incentives to commercial banks to lend less to public 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.

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

Description : 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

Last Answer : (2) Central bank gives loans to Commercial banks Explanation: Bank rate is the interest rate at which a nation's central bank lends money to domestic banks. Often these loans are very short in duration.

The RBI can decrease 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

Description : The RBI can decrease 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 : a) selling government securities

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

Description : 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

Last Answer : b) the proportion of total deposits commercial banks keep as reserves

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?

Description : 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?

Last Answer : If you want to learn more about the Federal Reserve system and how it works, start with Wikipedia and then, for fun, consider asking targeted questions of the conspiracy theorists here on Fluther. ... takes something of yours. Interest happens when you choose to pay for the opportunity to borrow.

Supply of money refers to (a) Total money held by the public ; (b) Total money held by RBI ; (c) Total money with all the commercial banks and RBI ; (d) Total money in Government account

Description : Supply of money refers to (a) Total money held by the public ; (b) Total money held by RBI ; (c) Total money with all the commercial banks and RBI ; (d) Total money in Government account

Last Answer : (a) Total money held by the public ; 

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

Description : 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

Last Answer : (3) Excess reserves Explanation: In banking, excess reserves are bank reserves in excess of the reserve requirement set by a central bank. They are reserves of cash more than the required ... is that doing so may provide enhanced liquidity and therefore more smooth operation of payment system.

Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization

Description : Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization

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.

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

Description : 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

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

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

Description : 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

Last Answer : Excess reserves

Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation

Description : Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation

Last Answer : Purchase and sale of Government securities by RBI

Bank rate is that rate on which - (1) Any bank lends money to an individual (2) State Bank of India gives loan to the rural banks (3) Central Bank of Country lends money to the commercial banks (4) Rural bank gives loan to cooperative societies

Description : Bank rate is that rate on which - (1) Any bank lends money to an individual (2) State Bank of India gives loan to the rural banks (3) Central Bank of Country lends money to the commercial banks (4) Rural bank gives loan to cooperative societies

Last Answer : (3) Central Bank of Country lends money to the commercial banks Explanation: Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and ... reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.

Bank rate is that rate on which– (1) Any bank lends money to an individual (2) State Bank of India gives loan to the rural banks (3) Central Bank of Country lends money to the commercial banks (4) Rural bank gives loan to cooperative societies

Description : Bank rate is that rate on which– (1) Any bank lends money to an individual (2) State Bank of India gives loan to the rural banks (3) Central Bank of Country lends money to the commercial banks (4) Rural bank gives loan to cooperative societies

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

Description : 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 ... change the proportion of govt. securities held by the RBI, Commercial Banks and Co-operative Banks

Last Answer : Answer: The RBI manages longterm liquidity through rapos

Rate of interest is determined by - (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Description : Rate of interest is determined by - (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Last Answer : (3) Liquidity preference Explanation: According to the classical view, rate of interest is determined by the interaction of supply of and demand for capital. Thus this theory is popularly called ... higher shall be the rate of interest. The liquidity preference constitutes the demand for money.

Rate of interest is determined by - (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Description : Rate of interest is determined by - (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Last Answer : (4) Commercial Banks Explanation: Bank Rate is determined by the Reserve Bank of India. The rate of interest is determined by the commercial banks in India. As per RBI notification, banks are free to determine rates of interest subject to BPLR and spread guidelines.

Rate of interest is determined by (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Description : Rate of interest is determined by (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Last Answer : Liquidity preference

Money supply is governed by the - (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Description : Money supply is governed by the - (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Last Answer : (3) Reserve Bank of India Explanation: In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. It is governed and ... Reserve Bank of India regulates money supply in India through its several policy rates and reserve ratios.

Money supply is governed by the (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Description : Money supply is governed by the (1) Planning Commission (2) Finance Commission (3) Reserve Bank of India (4) Commercial Banks

Last Answer : Reserve Bank of India

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

Ravi borrowed some money at the rate of 4 p.c.p.a. for the first three years, at the rate of 8 p.c.p.a. for the next two years and at the rate of 9 p.c.p.a. for the period beyond 5 years. If he pays a total simple interest of 19,550 at the end of 7 years, how much money did he borrow? a) 39,500 b) 42,500 c) 41,900 d) 43,000 e) None of these

Description : Ravi borrowed some money at the rate of 4 p.c.p.a. for the first three years, at the rate of 8 p.c.p.a. for the next two years and at the rate of 9 p.c.p.a. for the period beyond 5 years. If he pays a ... 7 years, how much money did he borrow? a) 39,500 b) 42,500 c) 41,900 d) 43,000 e) None of these

Last Answer : Let the amount borrowed be Rs P Total amount of simple interest = (P×3×4)/100 + (p×2×8)/100 + (p×2×9)/100 = 19550 0.12P + 0.16P + 0.18P = 19550 0.46p= 19550 P = Rs. 42500 Answer: b)

Which of the following is an Association of Commercial Banks, Financial Institutions and Primary Dealers? A. GOI B. RBI C. PSBs D. FEDAI E. FIMMDA

Description : Which of the following is an Association of Commercial Banks, Financial Institutions and Primary Dealers? A. GOI B. RBI C. PSBs D. FEDAI E. FIMMDA

Last Answer : E. FIMMDA Explanation: FIMMDA stands for The Fixed Income Money Market and Derivatives Association of India (FIMMDA). It is an Association of Commercial Banks, Financial Institutions and Primary Dealers. FIMMDA is a voluntary market body for the bond, Money And Derivatives Markets.

Manipulation in CRR enables the RBI to ……. (a) Influence the lending ability of the commercial banks ; (b) Check unemployment growth; (c) Check poverty ; (d) Increase GDP

Description : Manipulation in CRR enables the RBI to ……. (a) Influence the lending ability of the commercial banks ; (b) Check unemployment growth; (c) Check poverty ; (d) Increase GDP

Last Answer : (a) Influence the lending ability of the commercial banks ;

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

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

Last Answer : (1) Nationalized Commercial Bank Explanation: The Narasimham committee conceptualized the foundation of regional rural banks in India. Five regional rural banks were set up on October 2. 1975. There ... Bank. United Bank of India and United Commercial Bank, which sponsored the regional rural banks.

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

Description : 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

Last Answer : (1) Cash in the vault Explanation: A commercial bank is a profitseeking business, dealing in money and credit. It is a financial institution dealing in money in the sense that it accepts deposits of ... received as the deposits to needy people. So it creates credit from the cash deposits with it.

Refinance facility is provided by NABARD. Which institutins can avail it. (a) Commercial Bank. (b) Regional Rural Banks. © State Cooperative Banks. (d) All of the above.

Description : Refinance facility is provided by NABARD. Which institutins can avail it. (a) Commercial Bank. (b) Regional Rural Banks. © State Cooperative Banks. (d) All of the above.

Last Answer : (d) All of the above.

Regional Rural Banks are sponsored by (1) Nationalised Commercial Bank (2) Reserve Bank of India (3) State Bank of India (4) Government of India

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

Last Answer :  Nationalised Commercial Bank

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) Cooperation of other banks

Description : 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) Cooperation of other banks 

Last Answer : Cash in the vault

Scheduled Banks have to be registered with - (1) SEBI (2) RBI (3) Finance Ministry (4) SBI

Description : Scheduled Banks have to be registered with - (1) SEBI (2) RBI (3) Finance Ministry (4) SBI

Last Answer : (2) RBI Explanation: The scheduled primary (urban) cooperative banks are required to maintain with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5 per ... least 3 per cent of their total demand and time liabilities in India on clay-to-day basis.

Scheduled Banks have to be registered with - (1) SEBI (2) RBI (3) Finance Ministry (4) SBI

Description : Scheduled Banks have to be registered with - (1) SEBI (2) RBI (3) Finance Ministry (4) SBI

Last Answer : (2) RBI Explanation: The scheduled primary (urban) cooperative banks are required to maintain with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5 per ... least 3 per cent of their total demand and time liabilities in India on clay-to-day basis.

Scheduled Banks have to be registered with (1) SEBI (2) RBI (3) Finance Ministry (4) SBI

Description : Scheduled Banks have to be registered with (1) SEBI (2) RBI (3) Finance Ministry (4) SBI

Last Answer : RBI

Which of the below-mentioned institutes are linked with the financial sector of India controlled by the Reserve Bank of India (RBI)? a) Commercial Bank b) Money Lenders c) Stock Exchange Operations d) All the above

Description : Which of the below-mentioned institutes are linked with the financial sector of India controlled by the Reserve Bank of India (RBI)? a) Commercial Bank b) Money Lenders c) Stock Exchange Operations d) All the above

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)

RBI has imposed a fine of Rs 1 crore on which of the following banks for flouting bill discounting norms? A) Syndicate Bank B) United Bank of India C) Indian Overseas Bank D) UCO Bank E) Vijaya Bank

Description : RBI has imposed a fine of Rs 1 crore on which of the following banks for flouting bill discounting norms? A) Syndicate Bank B) United Bank of India C) Indian Overseas Bank D) UCO Bank E) Vijaya Bank

Last Answer : D) UCO Bank Explanation: Reserve Bank of India has told state-run Uco Bank to pay Rs 1 crore penalty for flouting bill discounting norms which allowed current account holders siphon out funds.

Open market operations of RBI refer to buying and selling of - (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Description : Open market operations of RBI refer to buying and selling of - (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : (4) Government bonds Explanation: OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to ... are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

Open market operations of RBI refer to buying and selling of (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Description : Open market operations of RBI refer to buying and selling of (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : Government bonds

Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Description : Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Last Answer : (b) Change in tax rate

If government officials are calculating the amount of money the federal government borrows for one fiscal year, they are _____.?

Description : If government officials are calculating the amount of money the federal government borrows for one fiscal year, they are _____.?

Last Answer : calculating a budget deficit

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 :-

_____has constantly endeavoured to develop the commercial bills market. a. Commercial bank b. RBI c. SBI

Description : _____has constantly endeavoured to develop the commercial bills market. a. Commercial bank b. RBI c. SBI

Last Answer : b. RBI

The process by which RBI or any Central bank protects the economy against adverse economic shocks is known as :a) protectionb) liberalizationc) stabilizationd) sterilization

Description : The process by which RBI or any Central bank protects the economy against adverse economic shocks is known as : a) protection b) liberalization c) stabilization d) sterilization

Last Answer : d) sterilization

If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three

Description : If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three

Last Answer : ; (d) All or any of the above three

Ruling on depositing money in Al-Baraka Islami Bank ? I manage a few accounts of a company. The company has accounts in several interest bearing banks. Note that account holders only open current accounts and do not charge interest. Isn't it better to keep all these lazy money in an Islamic bank lik

Description : Ruling on depositing money in Al-Baraka Islami Bank ? I manage a few accounts of a company. The company has accounts in several interest bearing banks. Note that account holders only open current accounts and ... income tax and duties or in other similar sectors ? Or can it be used in any sector ?

Last Answer : One: It is haraam to deposit money in an interest-bearing bank without the need to save money. For that, it should be limited to depositing money in (current bank's) current account. It is not permissible to ... It can be eaten. And if it can be kept in a better and cleaner bank then that is better.

Can money be deposited or employed in a bank or association ? Many banks or associations in our country have interest , is it legal to deposit money or work in these banks or associations ? And if someone works in such an association or bank, is it permissible to offer prayers behind him ?

Description : Can money be deposited or employed in a bank or association ? Many banks or associations in our country have interest , is it legal to deposit money or work in these banks or associations ? And if someone works in such an association or bank, is it permissible to offer prayers behind him ?

Last Answer : Conventional banks or associations are based on interest economy. The exchange of interest is the main work of these banks or associations. In the present capitalist economy, these banks are the main means of ... 3 More See books like Ahsanul Fatawa-3/209 , Imdadul Fatawa-1/411 , Gunia-480 etc.

What would you do if you found out your government had to borrow money from a private bank to run the ecconomy, and that this was the real cause of inflation?

Description : What would you do if you found out your government had to borrow money from a private bank to run the ecconomy, and that this was the real cause of inflation?

Last Answer : My government borrows money from private entities all the time. The government has always been borrowing from private entities, and has never been able to function without it. We’ve never been without a national debt. Buy a Treasury bill?

Suppose I borrow money from X and I authorize my bank to make monthly payments directly from my checking account. Now, I want more flexibility by paying either online or by check. X refuses to let me do this. But my bank refuses to "stop payment" on these tranfers even though its my money and it has no obligation to X. What's the law on this?

Description : Suppose I borrow money from X and I authorize my bank to make monthly payments directly from my checking account. Now, I want more flexibility by paying either online or by check. X refuses to let me do ... tranfers even though its my money and it has no obligation to X. What's the law on this?

Last Answer : answer:Hmm, I suppose you're from USA. Don't know the laws there, but here in Slovenia, we handle things like this by calling and yelling at the lady on the other side and things get fixed eventually. But ... what you can't do with you money. I'd threaten them I'm gonna change the bank or smthng.