30 Banking Awareness Questions And Answers
21. Number of deputy Governors in RBI?
22. Ways and means Advances was in force since?
Ans: 1977, April 1
23. The main function of NABARD?
Ans: Provide refinancing facility
24. In which circumstance Dear money policy will be adopted by Reserve Bank of India?
25. Through which instrument recently RBI has decided to buy upto 12000 crore of Govt. bonds?
Ans: Open market
26. Name of the organisation that was established by State Bank of India for buying and selling the Govt. securities?
Ans: SBI Gilts limited
27. Stagflation refers to?
Ans: Inflation with recession
28. Growth in M0 (Reserve money) during 2009-10 was?
Ans: 17 percent
29. Growth in M1 (Narrow money) during 2009-10 was?
Ans: 18.6 percent
30. Which committee recommended the measurements like M0, M1, M2 and M3?
Ans: Y.V. Reddy committee
31. Growth in M3 during 2009-10 was?
Ans: 16.8 percent.
32. Greshnam’s law states?
Ans: Bad money drives good money out of circulation
33. Time deposits with banks are included in which measures of money stock?
Ans: M3 and M4
34. The RBI can increase the demand deposit component of the money supply by?
Ans: Lowering reserve requirements and increasing the volume of reserves
35. Financiary issue implies?
Ans: The issue of currency notes without metallic banking
36. Open market operations means sale or purchase in the open market of?
Ans: Government Securities
37. In an economy high-powered money is equal to?
Ans: Monetary liabilities of Central Bank and Government money
38. Saving deposits are not a part of money stock measure M1 because?
Ans: They are not used as medium of exchange
39. Which factor does not affect the balance sheet of Reserve Bank of India?
Ans: Loan taken by one commercial bank from the other
40. The most liquid of all assets is?
41. If Reserve Bank of India raises the Cash Reserve Ratio then?
Ans: The value of money multiplier decreases
42. Other things being equal, an increase in the supply of money?
Ans: Lower nominal interest rate and raises aggregate demand
43. The function of World Bank (IBRD) is?
Ans: Promote growth of International trade and equilibrium
44. The supply of money consists of ?
Ans: Notes, Coins and Demand deposits
45. Banking companies (Acquisition and transfer of Undertaking) Act was passed in?
46. Fiat money is?
Ans: Which is accepted temporary in lieu of gold
47. A rise in the money supply will lead to?
Ans: A rise in the demand, A rise in price level and a fall in the interest rate
48. CAR refers to?
Ans: Capital Adequacy Ratio
49. International liquidity is regulated by?
Ans: International Monetary Fund
50. A ‘Soft Currency’ is a currency that?
Ans: Which can not be used for setting international transactions because it does not command a value in the international market