Question : High-powered money includes:

Option 1: Currency and Coins held by the public           

Option 2: Currency, cash reserves with banks, and demand deposits 

Option 3: Currency and coins held by the public and deposits held by government and commercial banks     

Option 4: Currency and demand deposits

Question : Which of the following is not a function of the commercial banks?

Option 1: Issuing currency notes

Option 2: Accepting deposits

Option 3: Lending money

Option 4: Providing financial advice

Question : The primary function of the RBI is:

Option 1: To issue currency notes and coins

Option 2: To regulate the supply of money and credit

Option 3: To lend to commercial banks

Option 4: All of the above

Question : The bank rate is the rate at which:

Option 1: RBI borrows from commercial banks 

Option 2: RBI lends to commercial banks 

Option 3: Commercial banks lend to customers

Option 4: Commercial banks borrow from RBI

Question : The reverse repo rate is the rate at which Central Bank:

Option 1: Lends money to commercial banks short-term

Option 2: Lends money to commercial banks for long-term

Option 3: Accepts deposits from commercial banks

Option 4: None of these