Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

Bank rate is the rate at which the RBI extends credit to the ______________.

  1. public

  2. foreign countries

  3. commercial banks

  4. agriculture
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Bank Rate is the rate at which the commercial banks avail loans from the Reserve Bank of India. (R.B.I.)

It is used as a quantitative tool to change the quantity of money supplied in the economy.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

When RBI grants a loan to commercial banks and charges interest on it, it is called _________.

  1. Rapo rate

  2. Reverse Rapo rate

  3. Sweep stack rate, basic rate

  4. Bank rate
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A bank rate is the rate of interest which a central bank (RBI)  charges on the loans and advances that it extends to commercial banks and other financial intermediaries. RBI uses this tool to control the money supply.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

Choose the correct answer form the alternatives given.
Who recently became the first woman chief of the State Bank of India ?

  1. Arundhati Bhattacharya

  2. Shubhalakshmi Panse

  3. Vijaylakshmi Iyer

  4. Chanda Kochhar
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Arundhatiu Bhattacharya is an Indian Banker and currently the Chair-Managing  director of the  State Bank of India. She is the first woman to be the Chairperson of  State Bank of India. 

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

Banking ombudsman means.

  1. A person appointed by RBI to oversee the functioning of foreign banks

  2. Person appointed to recover dues from the defaulting borrowers

  3. A person to whom customer can approach for redressal of their grievances

  4. A person appointed to settle dispute between employees and management
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Banking Ombudsman Scheme is a grievance redressal mechanism for bank customers to resolve complaints regarding banking services.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

According to _____, people derive maximum satisfaction when they spend by making marginal utility equal in all goods.

  1. law of equi-marginal utility

  2. law of diminishing marginal utility

  3. law of diminishing marginal rate of substitution.

  4. law of demand
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The law of equi-marginal utility states that a consumer maximizes total utility when the marginal utility per unit of money spent is equal across all goods consumed.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

_______ is the interest rate at which a central bank provides loans to other banks.

  1. Repo rate

  2. Borrowing rate

  3. Bank rate

  4. Treasury rate
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Bank Rate is the official interest rate at which the central bank (RBI) is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under the RBI Act.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

Quantitative measures consist of ________.

  1. repo rate and reverse repo rate

  2. open market operations

  3. variable reserve requirements

  4. all of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Quantitative measures of monetary policy include tools that affect the total volume of money and credit in the economy, such as repo rate, open market operations, and reserve requirements (CRR/SLR).

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

Bank rate is _______.

  1. the interest rate at which a central bank provides loans to other banks.

  2. the rate at which the bank discounts the bills and other instruments of other commercial banks.

  3. (A and (B)

  4. none of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Bank rate is the rate at which the central bank is ready to buy or rediscount bills of exchange or other commercial papers. It serves as the standard rate for lending to commercial banks.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

In the Monetary Policy announced for the year 2006-07 the following announcements have been made- Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressure seen during the last 4 months of 2005-06 have eased off considerably. In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged.
What is Bank Rate?

  1. The rate of interest charged by public sector banks from the general public.

  2. The rate of interest on housing loans.

  3. The rate of interest on educational loan.

  4. The rate at which the RBI discounts the bills of commercial banks.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Bank rate is defined as the rate at which the Reserve Bank of India is prepared to buy or rediscount bills of exchange or other commercial papers eligible for purchase under the Act.