30 Banking Awareness Questions And Answers

30 Banking Awareness Questions And Answers

21. Number of deputy Governors in RBI?
Ans: Four
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?
Ans: Inflation
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?
Ans: Money
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?
Ans: 1970
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