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 : 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 : 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 : 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
Last Answer : greater
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 : 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 : How does the Reserve Bank of India supervise the functioning of banks? -SST 10th
Last Answer : Reserve Bank of India (RBI) supervised the banks in the following ways : (i) It monitors the balance kept by banks for day-to-day transactions. (ii) It checks that the banks give loans ... credit facilities provided by bank. RBI makes sure that the loans from the banks are affordable and cheap.
Description : The Monetary Authority in India, viz Reserve Bank of India is bound to maintain a reserve against the notes issued, Whatever may be the mount. This system is called as __________ A. Minimum Reserve ... Reserve System C. Maximum Fiduciary Issue system D. Simple deposit system E. None of the Above
Last Answer : A. Minimum Reserve System Explanation: The RBI follows a minimum reserve system in the note issue. Initially, it used to keep 40 per cent of gold reserves in its total assets.
Description : 8. In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary? -Economics 10th
Last Answer : The Reserve Bank of India is the central bank of India, and all the other public sector banks work under the supervision of the Reserve Bank of India. It manages the functioning of the banks in ... to people.It also keeps a regular check on the interest rates set for loans in public sector banks.
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.
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 : 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.
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.
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.
Description : According to Reserve Bank of India Regulations, “Universal Banks” are permitted to pick up stake in Payment Banks up to _________ A. 35% B. 25% C. 20% D. 40% E. 30%
Last Answer : E. 30% Explanation: RBI regulations allow universal banks to invest up 30 per cent in payments banks.
Description : Co-operative banks are regulated by the Reserve Bank of India under _________ A. Banking Regulation Act, 1949 B. Banking Laws (Application to Co-operative Societies) Act, 1965 C. Both (A) and (B) D. Negotiable Instrument Act–1881 E. None of the Above
Last Answer : C. Both (A) and (B) Explanation: Co-operative banks are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965
Description : To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval / authorisation to Reserve Bank of India under ________ A. Payment and Settlement Systems (PSS) Act 2007. B. Foreign ... Act, 1999 C. Banking Regulation Act, 1949 D. SARFAESI Act, 2002 E. None of the Above
Last Answer : A. Payment and Settlement Systems (PSS) Act 2007. Explanation: To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval / authorisation to Reserve Bank of ... PSS) Act 2007. Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units.
Description : Reserve Bank of India has made it mandatory on the banks to discontinue the practice of stapling the currency note packets under _______ of the Banking Regulation Act, 1949 A. Section 35A B. Section 25A C. Section 15A D. Section 30A E. None of the Above
Last Answer : A. Section 35A Explanation: The Reserve Bank of India has made it mandatory on the banks to discontinue the practice of stapling the currency note packets. It has issued a directive to banks under Section 35A of the Banking Regulation Act, 1949.
Description : Reserve Bank of India gave “in-principle” licences to _______ entities to launch payments banks. A. 10 B. 11 C. 12 D. 13 E. None of the Above
Last Answer : B. 11 Explanation: Reserve Bank of India gave -in-principle licences to 11 entities to launch payments banks. They are:- Aditya Birla Nuvo Airtel M Commerce Services Cholamandalam ... Reliance Industries Dilip Shanghvi, Sun Pharmaceuticals Vijay Shekhar Sharma, Paytm Tech Mahindra Vodafone M-Pesa.
Description : Reserve Bank of India gave provisional licences to _______ entities to launch small finance banks. A. 10 B. 11 C. 12 D. 13 E. None of the Above
Last Answer : A. 10 Explanation: Reserve Bank of India gave provisional licences to 10 entities out of 72 applicants to launch small finance banks. The selected applicants are: Au Financiers (Jaipur), ... Micro Finance (Navi Mumbai), Ujjivan Financial Services (Bengaluru) and Utkarsh Micro Finance (Varanasi).
Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above
Last Answer : a. it is a system of 12 central banks
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 : What is the interest rate at which banks borrow money from Reserve Bank of India (RBI) called?
Last Answer : Repo Rate
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
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
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
Description : Banks are required to maintain SLR under_____ A. Section 24 of the Banking Regulation Act B. Section 35 of the Negotiable Instrument Act, 1881 C. Section 24 of RBI Act D. Section 40 of Indian Contract Act, 1872 E. None of the Above
Last Answer : A. Section 24 of the Banking Regulation Act Explanation: SLR is governed by the provisions of Section 24 of the Banking Regulation Act. There is no minimum stipulation on SLR (earlier there used to ... with an amendment to the Banking Regulation Act in 2007). However, SLR can not exceed 40%.
Description : SBI has been named as domestic systemically important banks (D-SIBs) this year. What additional capital it will have to maintain as a percent of loans and investments? A) 0.2% B) 0.4% C) 0.6% D) 0.8% E) None of these
Last Answer : C) 0.6% Explanation: Based on the methodology announced by the central bank, SBI will need to maintain additional capital equivalent to 0.6 per cent of its loans and investments while ICICI will need to maintain 0.2 per cent more.
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 : 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 : 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 : Cash kept in the currency chest is owned by? A. Currency Chest branch bank B. State Bank of India C. Central Government D. Reserve Bank of India
Last Answer : D. Reserve Bank of India Explanation: The amount of cash kept in the currency chest belongs to the RBI and is used for maintaining the Cash Reserve Ratio. To facilitate the distribution of ... These are actually storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank.
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 of the following is not a component of the working capital for a chemical process plant? (A) Product inventory (B) In-process inventory (C) Minimum cash reserve (D) Storage facilities
Last Answer : D) Storage facilities
Description : Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant? (A) Cash reserve (B) Rate of return on investment (C) Payout period (D) Discounted cash flow based on full life performance
Last Answer : (A) Cash reserve
Description : Which is the type of dividend? A. Cash Dividend B. Interest C. Profit cum-reserve D. Flexible Capital
Last Answer : A. Cash Dividend
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 ;
Description : If RBI reduces the cash reserve ratio, the credit creation will A) No impact B) Decrease C) Increase D) None of the above
Last Answer : Answer: C
Last Answer : Monetary policy
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 : Risk, as it relates to working capital, means that there is jeopardy to the firm for not maintaining sufficient current assets to . A. meet its cash obligations as they occur and take advantage ... above industry norms E. meet its cash obligations as they occur and support the proper level of
Last Answer : D. maintain current and acid-test ratios at or above industry norms