Knowee
Questions
Features
Study Tools

17. The role of RBI has been changed from ____ to ____ under New Economics Policy 1991. a) Facilitator to Regulator b) Supervisor to facilitator c) Regulator to facilitator d) Facilitator to supervisor 18. The relation between CRR, SLR and LRR is defined as a) LRR is the product of CRR and SLR. b) LRR is the ratio of CRR and SLR. c) LRR is the difference of CRR and SLR. d) LRR is the sum of CRR and SLR 19. When value of LRR increases the value of money multiplier a) Rises b) Falls c) Either rise or fall d) Remains unchanged 20. The central bank can increase the availability of credit by: a) Raising the repo rate b) Raising reverse repo rate c) Buying government securities d) Selling the government securities  21. Supply of money refers to (a) currency held by the public (b) currency held by Reserve Bank of India (c) currency held by the public and demand deposits with the commercial banks (d) currency held by Reserve Bank of India and demand deposits with commercial bank 22. Demand deposit includes (a) Saving account deposits and fixed deposits (b) Saving account deposits and current account deposits (c) Current account deposits and fixed deposits (d) All types of deposits 23. Two friends Akash and Amit were discussing about the features of central bank. "This feature saves the commercial banks from possible breakdown" The above-mentioned statement was given by Akash, identify the feature was he taking about... (a) Banker's bank (b) Lender of the last resort (c) Controller of credit (d) Financial advisor

Question

  1. The role of RBI has been changed from ____ to ____ under New Economics Policy 1991.

a) Facilitator to Regulator

b) Supervisor to facilitator

c) Regulator to facilitator

d) Facilitator to supervisor

  1. The relation between CRR, SLR and LRR is defined as

a) LRR is the product of CRR and SLR.

b) LRR is the ratio of CRR and SLR.

c) LRR is the difference of CRR and SLR.

d) LRR is the sum of CRR and SLR

  1. When value of LRR increases the value of money multiplier

a) Rises

b) Falls

c) Either rise or fall

d) Remains unchanged

  1. The central bank can increase the availability of credit by:

a) Raising the repo rate

b) Raising reverse repo rate

c) Buying government securities

d) Selling the government securities

  1. Supply of money refers to

(a) currency held by the public

(b) currency held by Reserve Bank of India

(c) currency held by the public and demand deposits with the commercial banks

(d) currency held by Reserve Bank of India and demand deposits with commercial bank

  1. Demand deposit includes

(a) Saving account deposits and fixed deposits

(b) Saving account deposits and current account deposits

(c) Current account deposits and fixed deposits

(d) All types of deposits

  1. Two friends Akash and Amit were discussing about the features of central bank. "This feature saves the commercial banks from possible breakdown" The above-mentioned statement was given by Akash, identify the feature was he taking about...

(a) Banker's bank

(b) Lender of the last resort

(c) Controller of credit

(d) Financial advisor

...expand
🧐 Not the exact question you are looking for?Go ask a question

Solution

  1. The role of RBI has been changed from Regulator to facilitator under New Economics Policy 1991. So, the correct answer is (c) Regulator to facilitator.

  2. The relation between CRR, SLR and LRR is not defined as any of the options given. None of the options correctly define the relationship between CRR, SLR and LRR.

  3. When the value of LRR increases, the value of the money multiplier falls. So, the correct answer is (b) Falls.

  4. The central bank can increase the availability of credit by buying government securities. So, the correct answer is (c) Buying government securities.

  5. Supply of money refers to currency held by the public and demand deposits with the commercial banks. So, the correct answer is (c) currency held by the public and demand deposits with the commercial banks.

  6. Demand deposit includes Saving account deposits and current account deposits. So, the correct answer is (b) Saving account deposits and current account deposits.

  7. The feature of the central bank that saves the commercial banks from possible breakdown is Lender of the last resort. So, the correct answer is (b) Lender of the last resort.

This problem has been solved

Similar Questions

CRR and SLR are primarily Instruments of Monetary policy and incidentally also help Banks in Liquidity ManagementQuestion 10AnswerTrueFalse

The Reserve Bank of India (RBI) acts as the central bank of India and is responsible for:  A. Fiscal policy formulation  B. Monetary policy formulation  C. Industrial regulation  D. Foreign policy

Which of the following is a function of the Reserve Bank of India (RBI) in the money market?  A. Issuing currency notes  B. Collecting income tax  C. Regulating stock markets  D. Conducting elections

Monetary policy committee has representations from RBI, Government of India and Independent MembersQuestion 9AnswerTrueFalse

18.Regulation of the Financial Markets:  A. RBI  B. CAG  C. SEBI  D. UIDAI

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.