Description : 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.
Last Answer : (a) Issue of paper notes.
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.
Description : Which bank enjoys monopoly power of note issue? (a) NABARD. (b) Commercial Bank. © Central Bank. (d) Regional Rural Bank.
Last Answer : © Central Bank.
Description : Which bank deals with short term credit? (a) Agricultural Bank. (b) Industrial Bank. © Commercial Bank. (d) None of these.
Last Answer : © Commercial Bank.
Description : Which type of bank deals with short term credit? (a) Agricultural bank (b) Industrial bank © Commercial bank (d) None of these
Last Answer : © Commercial bank
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.
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 : sale of stocks and bonds to the public
Description : Which of the following service(s) is/are available in small finance banks? A. Providing loans B. Acceptance of deposits C. Setting up of Subsidiaries D. Both (A) and (B) E. None of the Above
Last Answer : D. Both (A) and (B) Explanation: Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending.
Description : Which bank enjoys monopoly power of note issue? (a) NABARD (b) Agricultural bank © Industrial bank (d) Central bank.
Last Answer : (d) Central bank.
Description : Which bank is called lender of the last resort? (a) Agricultural bank. (b) Industrial bank. © Commercial bank. (d) Central bank.
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.
Description : Which bank is called lender of the last resort? (a) Agricultural bank (b) Industrial bank © Commercial bank (d) Central bank
Last Answer : (d) Central 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 : (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 : 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 : What is/are the credit rating agencies approved for the acceptance of public deposits by an HFC? A. The Credit Rating Information Services of India Ltd. (CRISIL) B. ICRA Ltd. C. Credit Analysis and Research Limited (CARE) D. FITCH Ratings India Pvt. Ltd. E. All of the Above
Last Answer : E. All of the Above Explanation: The HFC having credit rating can accept more deposits as compared to an HFC without such rating. The following credit rating agencies have been approved for the above ... ♦ ICRA Ltd. ♦ Credit Analysis and Research Limited (CARE) ♦ FITCH Ratings India Pvt. Ltd.
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 : The ratio of deposits to loans of a bank is known as _______ A. NPA coverage Ratio B. Return on asset ratio C. Asset Coverage ratio D. CD Ratio E. Other than those given as options
Last Answer : E. Other than those given as options Explanation: The loan to deposit ratio is used to calculate a lending institution‘s ability to cover withdrawals made by its customers.
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 : 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
Last Answer : D. All of the Above Explanation: HFCs are doing functions similar to banks as banks also provides housing loans. However, there are a few differences as given below: ♦ HFCs cannot accept demand ... Credit Guarantee Corporation(DICGC) is not available to depositors of HFCs, unlike in case of banks.
Description : Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing
Last Answer : (2) Portfolio Investment Explanation: Portfolio Investments are considered unsafe. These are investments in the form of a group (portfolio) of assets, including transactions in equity securities, such as ... which allows an investor to exercise a certain degree of managerial control over a company.
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 : 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
Last Answer : Portfolio Investment
Description : Which of the following cannot be called as a debt instrument as referred in financial transactions? A. Certificate of Deposits B. Bonds C. Stock D. Commercial Paper
Last Answer : C. Stock Explanation: Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages.
Description : What is the largest bank in India? (a) United bank of India (b) Punjab National Bank. © Bank of India. © State Bank of India.
Last Answer : © State Bank of India.
Description : Which of the following is not an apex institution? (a) SIDBI. (b) NABARD. © SBI. (d) State Cooperative Bank.
Last Answer : © SBI.
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
Description : hat posses general acceptability? (a) Bill of exchange (b) Bond © Money (d) Bank draft
Last Answer : © Money
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 : Payment Banks can not issue ________ A. Credit Card B. Debit Card C. loans D. Both (B) and (C) E. Both (A) and (C)
Last Answer : E. Both (A) and (C) Explanation: Payment banks cannot issue loans and credit cards while at the same time current account and savings accounts can be operated by such banks.
Description : 2. Which of the following is a component of M-1? a. savings deposits b. credit card c. checkable deposits d. gold
Last Answer : c. checkable deposits
Description : How does a commercial bank create money (a) By printing money ; (b) By lending a part of its deposits ; (c) By issuing ATM cards (d) Accepting deposits
Last Answer : (b) By lending a part of its deposits ;
Description : Bank deposits that can be withdrawn without notice are called - (1) account payee deposits (2) fixed deposits (3) variable deposits (4) demand deposits
Last Answer : (4) demand deposits Explanation: Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand ... of account which cannot be accessed for a predetermined period (typically the loan's term).
Description : 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 ... ratio of money held in demand drafts to that of money held in treasury bonds d) none of the above
Last Answer : a) ratio of money held by the public in currency to that of money held in bank deposits
Description : Bank deposits that can be withdrawn without notice are called (1) account payee deposits (2) fixed deposits (3) variable deposits (4) demand deposits
Last Answer : demand deposits
Description : Bank money refers to - (1) currency notes (2) coins (3) gold bullions (4) cheques
Last Answer : (4) cheques Explanation: There are two types of money in a fractional-reserve banking system, currency originally issued by the central bank, and hank deposits at commercial banks: (1) ... created in the banking system through borrowing and lending) - sometimes referred to as chequebook money.
Description : Bank money refers to (1) currency notes (2) coins (3) gold bullions (4) cheques
Last Answer : cheques
Description : Which fundamental principle is seriously threatened by an engagement that is compensated based on the net proceeds on loans received by the client from a commercial bank? a. Integrity b. Objectivity c. Professional behavior d. Confidentiality
Last Answer : Objectivity
Description : Leontief’s input output model is based on the concept of----- (a) Consumption function (b) Partial Equilibrium © General Equilibrium. (d) All of the above.
Last Answer : © General Equilibrium.
Description : .In Heckscher Ohlin theory production function differ between commodities but are same between---- (a) countries. (b) factors © costs. (d) revenues.
Last Answer : (a) countries.
Description : For which function money is accepted as a unit of account? (a) Measure of value. (b) Store of value. © Medium of exchange. (d) Standard of deferred payment.
Last Answer : (a) Measure of value.
Description : Which of the following are not characteristics of Keynesian consumption function? (a) The main influence on consumption in the short run is current disposable income (b) The marginal ... consume decreases as income increases (d) The average propensity to consume increases as income increases
Last Answer : d) The average propensity to consume increases as income increases
Description : If the Keynesian consumption function is, C=10+.8Y, if income is Rs 1000/- what is total consumption. (a) Rs .8/- (b) Rs 800/- © Rs 810/- (d) Rs .81/
Last Answer : © Rs 810/-
Description : An increase in marginal propensity to consume will (a) Lead to the consumption function becoming steeper. (b) Shift the consumption function upwards. © Shift the consumption function downwards. (d) Shift the savings function upwards.
Last Answer : d) Lead to the consumption function becoming steeper.
Description : n the simple Keynesian model investment is (a) Fixed. (b) A function of level of income. © Either fixed or a function of level of income. (d) None of the above.
Last Answer : © Either fixed or a function of level of income.
Description : n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.
Last Answer : (b) Level of income.
Description : Assume that the consumption function is of the form, C= 50+.8Y. If income is Rs 1000/- then consumption is,- (a) Rs 50/- 9b) Rs 1050/- © Rs 50/- (d) Rs 850/-
Last Answer : (d) Rs 850/-
Description : Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate non-spontaneous form for financing the excess seasonal current asset needs? ... credit. B. 6-month bank notes. C. Accounts payable. D. Common stock equity.
Last Answer : B. 6-month bank notes.
Description : Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate form for financing a new capital investme nt in plant and equipment? A. Trade credit. B. 6-month bank notes. C. Accounts payable. D. Common stock equity
Last Answer : D. Common stock equity.