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

A nation's central bank uses monetary policy tools such as _____________ to control the money supply flows into the economy. a.CRR, SLR, repo, reverse repo, interest rates etcb.CRR, SLR, repo, reverse repo, tax rates etcc.tax rates, interest rates etcd.CRR, SLR etcClear my choice

Which of the following is not used as an instrument or tool for conducting monetary policy in Australia?Group of answer choicescash (interbank) marketreserve deposit ratioopen market operationcash rate

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

What is the primary function of the Commercial Banks in the financial system?Question 13AnswerA.Conducting monetary policyB.Regulating the stock marketC.Issuing currencyD.Providing loans and accepting deposits

One significance of commercial banks is that it facilitates payments for smooth flow of money within the economy.2 pointsTRUEFALSE