Question : Fill in the blanks The role of RBI has reduced from ________ to _________.
Option 1: Facilitator to regulators
Option 2: Regulator to facilitator
Option 3: Commercial bank to central bank
Option 4: Central bank to RBI.
Correct Answer: Regulator to facilitator
Solution : The role of RBI has reduced from regulator to facilitator. Financial sector was allowed to take decisions on money matters without consulting the RBI. Hence Option B is correct.
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 discount rate is the interest rate at which:
Option 1: Commercial banks borrow from the central bank
Option 2: Commercial banks lend to the central bank
Option 3: The government borrows from the central bank
Option 4: The central bank lends to the government
Question : Which bank can increase the availability of credit by Selling government securities
Option 1: Local Bank
Option 2: Central Bank
Option 3: Private Bank
Option 4: Commercial Bank
Question : It is a bank which performs the function of accepting deposits and granting loans from the public.
Option 1: Commercial bank
Option 3: Reserve bank of India
Option 4: None of the above.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile