Question : If the amount of initial deposits with commercial banks is INR 4000 crore and LRR is 20%, then the total deposits created will be:
Option 1: 12000
Option 2: 20000
Option 3: 800
Option 4: 6000
Correct Answer: 20000
Solution : The correct answer is (b) 20,000
The formula to calculate the total deposits created is:
Total Deposits Created = Initial Deposits / Reserve Requirement
In this case, the initial deposits are INR 4000 crore and the LRR is 20% (or 0.2).
Total Deposits Created = 4000 crore / 0.2
Total Deposits Created = 20000 crore
Therefore, the total deposits created by commercial banks would be INR 20000 crore.
Question : Given a national income of INR 7,500 crore, compensation of employees is INR 3,500 crore, wages and salaries in cash is INR 1,500 crore, rent is INR 800 crore, corporate tax is INR 700 crore, and dividend is INR 200 crore, what is the profit in this case?
Option 1: INR 800 crore
Option 2: INR 1,200 crore
Option 3: INR 1,400 crore
Option 4: INR 1,600 crore
Question : In a particular year, the national income is INR 10,000 crore. The compensation of employees is INR 4,000 crore, rent is INR 1,000 crore, royalty is INR 500 crore, corporate tax is INR 800 crore, and dividend is INR 200 crore. What is the operating surplus in this case?
Option 1: INR 3,500 crore
Option 2: INR 4,000 crore
Option 3: INR 4,500 crore
Option 4: INR 5,000 crore
Question : In the case of Statutory Liquidity Ratio, the commercial banks are supposed to keep a ratio of ________ in the form of liquid assets.
Option 1: Total deposits
Option 2: Term deposits
Option 3: Saving deposits
Option 4: Current deposits
Question : If the national income is INR 12,000 crore, compensation of employees is INR 6,000 crore, wages and salaries in cash is INR 2,500 crore, royalty is INR 600 crore, corporate tax is INR 1,200 crore, and dividend is INR 300 crore, what is the profit in this case?
Option 1: INR 1,400 crore
Option 2: INR 2,800 crore
Option 3: INR 3,000 crore
Option 4: INR 3,500 crore
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
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