12th Class Economics Money And Banking Question Bank

done Case Based - Banking Total Questions - 8

• question_answer1)

  In India, the currency is issued by RBI on the basis of minimum reserve system. For this, RBI maintains a minimum reserve of Rs. 200 crore. This minimum reserve consists of gold and foreign securities. Out of this Rs. 200 crore, the value of gold must be equal to Rs. 115 crore. RBI issues currency notes in the country. However, one rupee note and all coins are issued by the Ministry of Finance (GoI). RBI issues them on behalf of government.

  On the basis of above imaginary information, answer the following questions:

  India follows................ reserve system.

   
  A)
  minimum done clear
  B)
  maximum done clear
  C)
  Both [a] and [b] done clear
  D)
  None of these done clear
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• question_answer2)

  In India, the currency is issued by RBI on the basis of minimum reserve system. For this, RBI maintains a minimum reserve of Rs. 200 crore. This minimum reserve consists of gold and foreign securities. Out of this Rs. 200 crore, the value of gold must be equal to Rs. 115 crore. RBI issues currency notes in the country. However, one rupee note and all coins are issued by the Ministry of Finance (GoI). RBI issues them on behalf of government.

  On the basis of above imaginary information, answer the following questions:

  Who is responsible for issuing one rupee note?

   
  A)
  State Government done clear
  B)
  Governor done clear
  C)
  Ministry of Finance done clear
  D)
  None of these done clear
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• question_answer3)

  In India, the currency is issued by RBI on the basis of minimum reserve system. For this, RBI maintains a minimum reserve of Rs/ 200 crore. This minimum reserve consists of gold and foreign securities. Out of this Rs. 200 crore, the value of gold must be equal to Rs. 115 crore. RBI issues currency notes in the country. However, one rupee note and all coins are issued by the Ministry of Finance (GoI). RBI issues them on behalf of government.

  On the basis of above imaginary information, answer the following questions:

  Minimum reserve consists of gold and........... .

   
  A)
  foreign securities done clear
  B)
  silver done clear
  C)
  diamond done clear
  D)
  None of these done clear
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• question_answer4)

  In India, the currency is issued by RBI on the basis of minimum reserve system. For this, RBI maintains a minimum reserve of Rs. 200 crore. This minimum reserve consists of gold and foreign securities. Out of this Rs. 200 crore, the value of gold must be equal to Rs. 115 crore. RBI issues currency notes in the country. However, one rupee note and all coins are issued by the Ministry of Finance (GoI). RBI issues them on behalf of government.

  On the basis of above imaginary information, answer the following questions:

  Who has the monopoly right of issuing currency notes in the country?

   
  A)
  Governor done clear
  B)
  Central Government done clear
  C)
  State Government done clear
  D)
  RBI done clear
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• question_answer5)

  The Reserve Bank of India unexpectedly cut its key deposit rate, for the second time in three weeks, to discourage banks from parking idle funds with it and spur lending instead, to revive a flagging economy amid the Corona Virus lockdown.

  This week. Prime Minister Narendra Modi extended until May 3 a lockdown of the population of 1.3 billion as India's tally of infections exceeded 10,000, despite the three-week shutdown ordered from March 24.

  The RBI cut its Reverse Repo Rate by 25 basis points (bps) to 3.75% with immediate effect. Governor Shaktikanta Das told a video conference. The rate had already been cut by 90 bps on March 27.

  "The surplus liquidity in the banking system has risen significantly in the wake of government spending and the various liquidity enhancing measures undertaken by the RBI", he added.

  "In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed-rate Reverse Repo Rate."

  Source: Business Today, April 17, 2020.

  On the basis of above imaginary information, answer the following questions:

  The Reserve Bank of India lowered Reverse Repo Rate to discourage banks from parking idle funds with

  A)
  RBI done clear
  B)
  Commercial Bank done clear
  C)
  Both [a] and [b] done clear
  D)
  None of these done clear
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• question_answer6)

  The Reserve Bank of India unexpectedly cut its key deposit rate, for the second time in three weeks, to discourage banks from parking idle funds with it and spur lending instead, to revive a flagging economy amid the Corona Virus lockdown.

  This week. Prime Minister Narendra Modi extended until May 3 a lockdown of the population of 1.3 billion as India's tally of infections exceeded 10,000, despite the three-week shutdown ordered from March 24.

  The RBI cut its Reverse Repo Rate by 25 basis points (bps) to 3.75% with immediate effect. Governor Shaktikanta Das told a video conference. The rate had already been cut by 90 bps on March 27.

  "The surplus liquidity in the banking system has risen significantly in the wake of government spending and the various liquidity enhancing measures undertaken by the RBI", he added.

  "In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed-rate Reverse Repo Rate."

  Source: Business Today, April 17, 2020.

  On the basis of above imaginary information, answer the following questions:

  RBI's measure of reduction in Reverse Repo Rate is done to enable commercial banks....................

  A)
  to use the surplus funds for investment done clear
  B)
  to grant loans for productive purposes done clear
  C)
  to widen economic and financial landspace done clear
  D)
  All of the above done clear
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• question_answer7)

  The Reserve Bank of India unexpectedly cut its key deposit rate, for the second time in three weeks, to discourage banks from parking idle funds with it and spur lending instead, to revive a flagging economy amid the Corona Virus lockdown.

  This week. Prime Minister Narendra Modi extended until May 3 a lockdown of the population of 1.3 billion as India's tally of infections exceeded 10,000, despite the three-week shutdown ordered from March 24.

  The RBI cut its Reverse Repo Rate by 25 basis points (bps) to 3.75% with immediate effect. Governor Shaktikanta Das told a video conference. The rate had already been cut by 90 bps on March 27.

  "The surplus liquidity in the banking system has risen significantly in the wake of government spending and the various liquidity enhancing measures undertaken by the RBI", he added.

  "In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed-rate Reverse Repo Rate."

  Source: Business Today, April 17, 2020.

  On the basis of above imaginary information, answer the following questions:

  Reverse Repo Rate is........... to correct excess demand.

  A)
  decreased done clear
  B)
  increased done clear
  C)
  Both [a] and [b] done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer8)

  The Reserve Bank of India unexpectedly cut its key deposit rate, for the second time in three weeks, to discourage banks from parking idle funds with it and spur lending instead, to revive a flagging economy amid the Corona Virus lockdown.

  This week. Prime Minister Narendra Modi extended until May 3 a lockdown of the population of 1.3 billion as India's tally of infections exceeded 10,000, despite the three-week shutdown ordered from March 24.

  The RBI cut its Reverse Repo Rate by 25 basis points (bps) to 3.75% with immediate effect. Governor Shaktikanta Das told a video conference. The rate had already been cut by 90 bps on March 27.

  "The surplus liquidity in the banking system has risen significantly in the wake of government spending and the various liquidity enhancing measures undertaken by the RBI", he added.

  "In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed-rate Reverse Repo Rate."

  Source: Business Today, April 17, 2020.

  On the basis of above imaginary information, answer the following questions:

  When Reverse Repo Rate is reduced, it.................

  A)
  discourages the commercial banks to park their surplus funds with RBI done clear
  B)
  encourages the commercial banks to park their surplus funds with RBI done clear
  C)
  Both [a] and [b] done clear
  D)
  Neither [a] nor [b] done clear
  View Solution play_arrow