Question : Assertion (A) Central bank as a banker to the banker to the government, works as a financial adviser.
Reason (R) Government borrows internally from banks and the general public.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true, but Reason (R) is false.
Option 4: Assertion (A) is false, but Reason (R) is true.
Correct Answer: Assertion (A) is true, but Reason (R) is false.
Solution : The correct answer is (c) Assertion (A) is true, but Reason (R) is false.
Assertion is true because the central bank acts as a banker to commercial banks and other financial institutions, which in turn interact with the government. The central bank provides various services to commercial banks, such as maintaining their accounts, providing liquidity support, and acting as a lender of last resort. However, the central bank's role as a financial adviser to the government is not directly linked to its position as a banker to the banks. The central bank advises the government on monetary policy, exchange rate management, and overall financial stability based on its expertise in these areas.
Reason is false. While it is true that the government can borrow funds from banks and the general public through the issuance of government securities, it does not necessarily borrow internally.
The government can also raise funds externally through international borrowing or seek financial assistance from international organizations. The assertion implies that the government's borrowing is limited to internal sources, which is not accurate.
Therefore, the correct answer is (c) Assertion (A) is true, but Reason (R) is false.
Question : Which of the following is not the function of the central bank of the country?
Option 1: It controls money supply of the country.
Option 2: It acts as a banker to the government.
Option 3: It accepts deposits from the public.
Option 4: It issues the currency of the country.
Question : SIDBI stands for :
Option 1: small industrial designed Bank of India
Option 2: Small industries development Bank of India
Option 3: Small innovations development banker's institute
Option 4: small industries development Banker institute
Question : A, B and C were partners sharing profits in the proportion of one-half, one-fourth and one-fourth respectively. As at March 31, 2018 A’s capital Rs 1,00,000 and A’s loan account (debit Balance ) Rs 30,000. A died on 1st April, 2018. According to the partnership agreement, the goodwill was to be calculated at two year’s purchases of average profits of three completed years preceding the death or retirement of a partner. The deceased partner’s share of capital and goodwill, etc., was paid out in cash on 4th April, 2018, the available cash balance being supplemented by a loan from the firm’s banker on the security of the freehold property. The net profits of the years ending 31st March, 2016, 2017 and 2018 were Rs.55,000, Rs.48,000 and Rs.65,000 respectively. Q. Amount of goodwill will be --------
Option 1: Rs 1,12,000
Option 2: Rs 56,000
Option 3: Rs 1,68,000
Option 4: None of the above
Question : A, B and C were partners sharing profits in the proportion of one-half, one-fourth and one-fourth respectively. As of March 31, 2018, A’s capital is Rs 1,00,000 and A’s loan account ( debit Balance ) is Rs 30,000. A died on 1st April 2018. According to the partnership agreement, the goodwill was to be calculated at two two-year purchases of average profits of three completed years preceding the death or retirement of a partner. The deceased partner’s share of capital and goodwill, etc., was paid out in cash on 4th April 2018, the available cash balance being supplemented by a loan from the film’s banker on the security of the freehold property. The net profits of the years ending 31st March, 2016, 2017 and 2018 were Rs.55,000, Rs.48,000 and Rs.65,000 respectively. Q. Amount paid to A's Executors through the bank will be
Option 1: Rs 1,26,000
Option 2: Rs 1,16,000
Option 3: Rs 10,000
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