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

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
by

1 Answer

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 contract the amount of money in the banking system. A central bank uses OMO as the primary means of implementing monetary policy.
by
selected

Related questions

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

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

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

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

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.

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

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

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 ;

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

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.

Loans raised by the government from the public are known as: a) Corporate borrowings b) Common borrowings c) Market borrowings d) Private borrowings

Description : Loans raised by the government from the public are known as: a) Corporate borrowings b) Common borrowings c) Market borrowings d) Private borrowings

Last Answer : : c) Market borrowings

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

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

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

Description : 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

Last Answer : (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.

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 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

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)

Repo Market means (a) A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument (b) A money market instrument which helps in collateral long term borrowing and lending through sale and purchase operation in debt instrument (c) A money market instrument which helps in collateral short term lending through sale and purchase operation in debt instrument (d) A money market instrument which helps in collateral short term borrowing through sale and purchase operation in debt instrument

Description : Repo Market means (a) A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument (b) A money market ... instrument which helps in collateral short term borrowing through sale and purchase operation in debt instrument

Last Answer : (a) A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument 

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

Description : 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

Last Answer : C. Section 42(i) of the RBI Act, 1934 Explanation: Every bank included in the Second Schedule shall maintain with the Bank an average daily balance the amount.

Which one of the following items is not included in the current account of India's Balance of Payments? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments

Description : Which one of the following items is not included in the current account of India's Balance of Payments? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments

Last Answer : (2) Non-monetary gold movements Explanation: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These ... factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.

Which one of the following items is not included in the current account of India’s Balance of Payments ? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments

Description : Which one of the following items is not included in the current account of India’s Balance of Payments ? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments

Last Answer : Non-monetary gold movements

In the Capital market, the term arbitrage is used with reference to ______ A. Purchase of securities to cover the sale B. Sale of securities to reduce the loss on purchase C. Simultaneous purchase and sale of securities to make profits from price D. Variation in different markets E. None of the Above

Description : In the Capital market, the term arbitrage is used with reference to ______ A. Purchase of securities to cover the sale B. Sale of securities to reduce the loss on purchase C. Simultaneous purchase ... of securities to make profits from price D. Variation in different markets E. None of the Above

Last Answer : C. Simultaneous purchase and sale of securities to make profits from price Explanation: Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. ... on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.

Reverse Repo transaction means (a) Sale of securities by the holder to the investor with the agreement to purchase them at a predetermined rate and date (b) Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date (c) Sale and purchase of securities by the holder to the investor with the agreement to purchase them at the prevailing rate and date (d) Sale of securities by the holder to the investor with the agreement to purchase them at market driven rate

Description : Reverse Repo transaction means (a) Sale of securities by the holder to the investor with the agreement to purchase them at a predetermined rate and date (b) Sale or purchase of securities by the ... of securities by the holder to the investor with the agreement to purchase them at market driven rate

Last Answer : (b) Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date

Repo transaction means (a) Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date. (b) Sale of securities by the holder to the investor with the agreement to resell them at a predetermined rate and date. (c) Sale and purchase of securities by the holder to the investor with the agreement to purchase them at the prevailing rate and date (d) Sale of securities by the holder to the investor with the agreement to purchase them at market driven rate.

Description : Repo transaction means (a) Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date. (b) Sale of securities by the holder to the ... of securities by the holder to the investor with the agreement to purchase them at market driven rate.

Last Answer : (a) Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date.

Which one of the following is not an objective of the introduction of Primary Dealer System ? (A) To encourage a voluntary holding of govt. securities amongst a wider investor base (B) To make Primary Dealer System an effective conduct of open market operations (C) To strengthen the private equity infrastructure (D) To strengthen the govt. securities infrastructure

Description : Which one of the following is not an objective of the introduction of Primary Dealer System ? (A) To encourage a voluntary holding of govt. securities amongst a wider investor base (B) To ... (C) To strengthen the private equity infrastructure (D) To strengthen the govt. securities infrastructure

Last Answer : Answer: To strengthen the private equity infrastructure

Which of the following is/are not eligible to issue Certificates of deposit(CD)? A. RRBs B. Co-operative banks C. Scheduled banks D. Both (A) and (B) E. None of the Above

Description : Which of the following is/are not eligible to issue Certificates of deposit(CD)? A. RRBs B. Co-operative banks C. Scheduled banks D. Both (A) and (B) E. None of the Above

Last Answer : D. Both (A) and (B) Explanation: All scheduled banks (except RRBs and Co-operative banks) are eligible to issue CDs

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 ; 

________was constituted to protect the interests of investors in securities and to promote the development of and to regulate the securities market through appropriate measures. a. RBI b. SEBI c. BSE

Description : ________was constituted to protect the interests of investors in securities and to promote the development of and to regulate the securities market through appropriate measures. a. RBI b. SEBI c. BSE

Last Answer : b. SEBI

The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Description : The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Last Answer : Justify the following statement: The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Description : 9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Last Answer : c. buy Treasury securities in the open market

A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks

Description : A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks

Last Answer : (1) restricts lending Explanation: Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form gold or government approved securities before providing credit to ... , suck liquidity in the market, to tighten the measure to safeguard the customers' money.

The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Description : The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Last Answer : (1) greater Explanation: Cash Reserve Ratio is a regulation set by Central bank (RBI in India) which dictates the minimum amount (reserves) (hata commercial bank must be held to customer notes and deposits ... banks to hold a lesser proportion of (heir deposits in the form of deposits with the RBI.

A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks

Description : A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks 

Last Answer : restricts lending 

The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Description :  The smaller the Cash Reserve Ratio, the scope for lending by banks is : (1) greater (2) smaller (3) weaker (4) lesser

Last Answer : greater

Which of the following is the clearing agency for Government securities? A. RBI B. GOI C. CCIL D. SEBI E. None of the Above

Description : Which of the following is the clearing agency for Government securities? A. RBI B. GOI C. CCIL D. SEBI E. None of the Above

Last Answer : C. CCIL Explanation: The CCIL is the clearing agency for Government securities. It acts as a Central Counter Party (CCP) for all transactions in Government securities by interposing itself between two counter parties.

Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through - (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Description : Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through - (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Last Answer : (3) issue of securities Explanation: Capital markets provide for the buying and selling of long term debt or equity backed securities. When they work well, the capital markets channel the wealth of ... to raise long-term funds by providing a market for securities, both through debt and equity.

Long-term funds in the capital market can be raised either by borrowing from certain institutions or through (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Description : Long-term funds in the capital market can be raised either by borrowing from certain institutions or through (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Last Answer :  issue of securities

An extensive understanding of the client's business and industry and knowledge about the company's operations are essential for doing an adequate audit. For a new client, most of this information is obtained a. From the Securities and Exchange Commission. b. From the predecessor auditor. c. From the permanent file. d. At the client's premises

Description : An extensive understanding of the client's business and industry and knowledge about the company's operations are essential for doing an adequate audit. For a new client, most of this information is obtained ... . From the predecessor auditor. c. From the permanent file. d. At the client's premises

Last Answer : At the client's premises

An extensive understanding of the client's business and industry and knowledge about the company's operations are essential for doing an adequate audit. For a new client, most of this information is obtained a. From the Securities and Exchange Commission. b. From the predecessor auditor. c. From the permanent file. d. At the client's premises.

Description : An extensive understanding of the client's business and industry and knowledge about the company's operations are essential for doing an adequate audit. For a new client, most of this information is obtained ... From the predecessor auditor. c. From the permanent file. d. At the client's premises.

Last Answer : At the client's premises.

According to RBI Guidelines on Sale of Stressed Assets by Banks, identification of stressed assets beyond a specified value, as may be determined by bank’s policy, for sale is ___________. a) Top-down b) Bottom–top c) Horizontal d) Vertical

Description : According to RBI Guidelines on Sale of Stressed Assets by Banks, identification of stressed assets beyond a specified value, as may be determined by bank’s policy, for sale is ___________. a) Top-down b) Bottom–top c) Horizontal d) Vertical

Last Answer : a) Top-down

Which entity oversees and regulates Florida's financial entities including state-chartered banks and securities industry participants?

Description : Which entity oversees and regulates Florida's financial entities including state-chartered banks and securities industry participants?

Last Answer : OFR

When C:N ratio is >30 — occur in soil a. Mobilization b. Immobilization c. Both a & b d. None of these

Description : When C:N ratio is >30 — occur in soil a. Mobilization b. Immobilization c. Both a & b d. None of these

Last Answer : b. Immobilization

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 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.

Mobilization advance up to 10% of the cost of work is given to a contractor (A) On commencement of work at site for payment of loan taken by him (B) For the purchase of construction materials (C) For the payment of advances to labour and other staff (D) For all activities required to start the work at site on finalization of the contract document

Description : Mobilization advance up to 10% of the cost of work is given to a contractor (A) On commencement of work at site for payment of loan taken by him (B) For the purchase of construction ... staff (D) For all activities required to start the work at site on finalization of the contract document

Last Answer : (D) For all activities required to start the work at site on finalization of the contract document

The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Description : The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : (1) sale of stocks and bonds to the public Explanation: Companies issue securities called stocks and bonds to raise necessary capital which funds the company's daily operations and growth. ... issuing stock to owners called stockholders doesn't require the company's repayment of investor principal.