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Banking Gk -Objective Questions- Bank Rate/CRR/Repo Rate/Revese Repo Rate

Banking Gk -Objective Questions- Bank Rate/CRR/Repo Rate/Revese Repo Rate

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Dear Readers,
We are presenting Banking Objective Questions for upcoming Banking  Exams. We will more questions in forthcoming posts.
Banking Gk -Objective Questions- Bank rate/CRR/Repo Rate/Revese Repo Rate-Set 6

SL NO . QUESTIONS OPTIONS ANS.
1. Reverse Repo mean 1)Rate RBI charges on funds lent to banks
2)Rate offered to Blue chip companies
3)A rate equal to Bank rate
4)All of these
1
2. RRBs are refinanced at 1)2 % below the bank rate
2)1 % below the bank rate
3)2 % below the repo rate
4)1 % below the repo rate
1
3. Quantitative instrument of RBI can be 1)Bank rate policy
2)CRR
3)SLR
4)All of these
4
4. The lowering of Bank Rate by the RBI leads to 1)More liquidity in the market
2)less liquidity in the market
3)No change in the liquidity in the market
4)Mobilization of more deposits by commercial banks
1
5. In India , the RBI prescribes the minimum SLR level for scheduled Commercial banks in India in specified assets as a percentage of Banks’s 1)Net demand & Time Liabilities
2)Demand Liabilities
3)Time liability
4)None of the above
1
6. Which of the following is a measure taken by RBI to control inflation in our country ? 1)Increase in CRR
2)increase in SLR
3)raising of Repo/reverse Repo Rate
4)Decrease the SLR
3
7. Which of the following is/are called key policy rate by  the RBI 1)Bank rate
2)Repo Rate, Reverse Repo Rate ,
3)CRR , SLR
4)SLR
2
8.  CRR is maintained in the form of 1)instrument in Money Market
2)Government securities
3)balance with RBI
4)All of the above
 

3

9. Reserve which can act as a liquidity buffer for commercial banks during crisis times are 1)CAR
2)CRR
3)CAR & CRR
4) SLR
4
10. The rate at which the RBI lends short term money to the banks 1)PLR
2)CRR
3)Repo rate
4)Reverse repo rate
3
11. Which of the following represent correct meaning of “Repo  Rate “ 1)Rate on which RBI sells Govt. securities to Banks
2)Rate for borrowing rupees to by banks from RBI
3)Rate offered by banks to their prime customers
4)Rate applicable for grant of priority sector loans 
2
12. RBI changes the CRR which of the following is correct in this connection 1)Reduction in CRR increases the liquidity position within Indian banks
2)Increase in CRR increases the liquidity position within Indian Banks
3)Increase in CRR does not affect the liquidity position
4)decrease in CRR does not affect the liquidity position 
1
13. When repo rate is increased by RBI , it leads to 1)reduction of cost to borrowers on loans from banks
2)increase in cost of loans to borrowers from banks
3)reduction in cost of borrowing by banks from RBI
4)increase in cost of borrowing by banks from RBI
3
14) When RBI wants to reduce liquidity in the banking system 1)it increases the CRR
2)it increases the SLR
3)It increases the Repo rate
4)It increases the reverse repo rate
1
15) What is the minimum & maximum extent of CRR that RBI can prescribe 1)3 % & 20 %
2)5 % & 15 %
3)5 % & 20 %
4)discretion of RBI
4
16) Following liability is not taken as part of time and demand liabilities for the purpose of CRR 1)fixed deposit
2)savings bank accounts
3)recurring deposits
4)paid up capital
4
17) The following section of the respective Act is related to maintenance of CRR by banks 1)section 42 of the RBI act 1934
2)section 42 of BR Act 1949
3)section 42(1) of RBI Act 1934
4)None of the above
3
18) What is the CRR maximum limit for a commercial bank to be deposited  with RBI ? 1)40 %
2)50%
3)45 %
4)45 %
2
19) Bank rate is decided by which of the following ? 1)RBI
2)Govt. of India
3)SBI
4)SEBI
1
20) What is bank rate is 1)Rate at which commercial banks borrow long term funds from central bank
2)Rate at which commercial banks borrow short term funds from central bank
3)rate at which central banks borrow long term funds from commercial banks
4)None of these
1
21) Raising or lowering of the central bank discount rate is known as 1)Bank rate policy
2)Open market operation
3)CRR
4)None of these
1
22) Which of the following rates are not decided by RBI ? 1)CRR
2)Fixed Deposit Rate
3)Repo rate
4)SLR
2
23) The RBI is regularly revising upwards the repo & reverse repo rates. Why is this being resorted to ? 1)To ckeck inflationary pressures in the economy
2)To curb growth of black money
3)To encourage rise in interest rates on deposits
4)To make bank loan costlier
1

 

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