Description : If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? -General Knowledge
Last Answer : The answer is 'Increase'
Description : If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation? -Do You Know?
Last Answer : answer:
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
Description : If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above
Last Answer : (1) lower cash reserve ratio Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to ... the amount of Bank deposits and they will lend more as they have more amount as their reserve.
Description : If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above
Last Answer : lower cash reserve ratio
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.
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
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.
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
Description : Differentiate between Reserve Bank of India RBI and Commercial Bank. -SST 10th
Last Answer : Difference between Reserve Bank of India and Commercial Bank :-
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)
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
Description : First Indian to be appointed as the Governor of the Reserve Bank of India (RBI) was?
Last Answer : C.D. Deshmukh in 1943.
Description : In which year Reserve Bank of India (RBI) was nationalized?
Last Answer : 1949
Description : What is the interest rate at which banks borrow money from Reserve Bank of India (RBI) called?
Last Answer : Repo Rate
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
Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy
Last Answer : (4) Monetary policy Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the ... money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy
Last Answer : (1) Monetary policy Explanation: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as ... CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.
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.
Description : 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
Last Answer : (2) Cash Reserve Ratio Explanation: Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the avail-able amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.
Description : ___________ can be used as a standard to measure the efficiency of an economy 1. Cash reserve ratio 2. Exchange rate ratio 3. Incremental capital output ratio 4. Profit ratio 5. None of these
Last Answer : Incremental capital output ratio
Description : the ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio. (A) Cash reserve (B) Capital (C) Turnover
Last Answer : (C) Turnover
Description : Which among the following is not the instrument of monetary policy A. Deficit financing B. Statutory liquidity Ratio C. Cash reserve ratio D. Open market operation
Last Answer : A. Deficit financing
Description : CRR means (a) Cash Reserve Ratio ; (b) Current rate of return ; (c) Cumulative rate of return; (d) Current rate of Rupee
Last Answer : (a) Cash Reserve Ratio ;
Last Answer : Monetary policy
Last Answer : greater
Description : 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
Last Answer : Cash Reserve Ratio
Description : Select the correct statement. (A) A meander increases the river length but a cut off reduces the river length (B) A cut-off increases the river length but a meander reduces the river length ( ... meander and cut-off increase the river length (D) Both meander and cut-off decrease the river length
Last Answer : Answer: Option A
Description : Changing MTBF will: a. have no impact on Perceived Age. b. increase Perceived Age. c. decrease Perceived Age. d. change Perceived Age. e. is undetermined.
Last Answer : a. have no impact on Perceived Age.
Description : Current assets are Rs.6,00,000 current liabilities are Rs.3,00,000 the debtors realized Rs.40,000, the impact on net working capital would be------------------------- a) No change in working ... Decrease of working capital by Rs.80,000 c) Increase of working capital by Rs.40,000 d) None of these
Last Answer : a) No change in working capital
Description : Increase in the amount of bills payable results in---------- a) Decrease in cash b) Increase in cash c) No change in cash d) None of these
Last Answer : b) Increase in cash
Description : Increase in the amount of bills receivable results in-------------- a) decrease in cash b) increase in cash c) no change in cash d) none of these
Last Answer : a) decrease in cash
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.
Description : B) Scheme for Sustainable Structuring of Stressed Assets Explanation: Under a new ‗Scheme for Sustainable Structuring of Stressed Assets (S4A), RBI allowed banks to take equity in debt ... loans of struggling companies into sustainable and unsustainable based on the cash flows of the projects.
Last Answer : Which bank has launched India‟s first certified green bond at London Stock Exchange (LSE)? A) State Bank of India B) Bank of Baroda C) ICICI Bank D) Axis Bank E) None of these
Description : The national agency mandated to control, analyse and disseminate Suspicious Transaction Reports(STR), Cash Transaction Reports and counterfeit currency reports to various investigative agencies of the country after ... (IB) D. Central Bureau of Investigation(CBI) E. Central Intelligence Unit(CIU)
Last Answer : B. Financial Intelligence Unit(FIU) Explanation: The FIU is the national agency mandated to collect, analyse and disseminate Suspicious Transaction Reports (STRs), Cash Transaction Reports ... country after receiving it from banks and other financial intermediaries under a stipulated mechanism.
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
Description : What role did shays rebellion play in the creation of the constitution if shays rebellion had been a peaceful protest do you feel it would have had the same impact?
Last Answer : Need answer
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
Description : Liquidity Preference means - (1) holding assets in the form of bonds and shares (2) holding assets in the form of cash (3) creation of immovable property (4) assets in the form of jewellery
Last Answer : (2) holding assets in the form of cash Explanation: Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in ... than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation.
Description : Liquidity Preference means (1) holding assets in the form of bonds and shares (2) holding assets in the form of cash (3) creation of immovable property (4) assets in the form of jewellery
Last Answer : holding assets in the form of cash
Description : Research indicates that financial incentives _____________ commitment to difficult goals. (a) do not impact ; (b) significantly increase ; (c) decrease ; (d) increase
Last Answer : (c) decrease ;
Description : What happens in accounting when purchasing office supplies with Cash does our asses increase or decrease?
Description : Cash from operations is equal to------------------ a) net profit afer tax b) net profit plus increase in current asset c) net profit plus decrease in current liabilities d) net profit plus non-cash expenses plus decrease in current
Last Answer : d) net profit plus non-cash expenses plus decrease in current
Description : Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of ________ A. RBI B. IDBI C. 34 Government of India owned / controlled institutions D. None of the Above
Last Answer : A. RBI Explanation: Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of Reserve Bank of India. It was established under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for ... recurring deposits for up to the limit of Rs. 100,000 of each deposits in a bank.
Description : ECGC Limited (Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by? A. RBI B. Government Of India C. IRDAI D. NABARD
Last Answer : B. Government Of India Explanation: ECGC Ltd. (Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India, was set up in 1957 with the objective of ... comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community.
Description : Credit Rating Agency, SMERA accredited by ________ A. SEBI B. SIDBI C. NABARD D. RBI E. None of these
Last Answer : D. RBI Explanation: The Company has received accreditation from the Reserve Bank of India (RBI) as an External Credit Assessment Institution (ECAI) under BASEL – II norms for undertaking bank loan ratings.
Description : Which of the following provides license to a credit bureau? A. SEBI B. SIDBI C. NABARD D. RBI E. GOI
Last Answer : D. RBI Explanation: A Credit Bureau is licensed by the RBI.