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 : Commercial banks can create money by: 

Option 1: Printing currency notes and coins 

Option 2: Lending out the deposits they receive 

Option 3: Receiving deposits from customers

Option 4: All of the above

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 : What is the meaning of reverse repo rate?

Option 1: The rate at which RBI borrows money from foreign banks.

Option 2: The rate at which RBI borrows money from commercial banks.

Option 3: The rate at which commercial banks borrow money from RBI.

Option 4: The rate at which commercial banks borrow money from foreign banks.

Question : The primary function of commercial banks is ___________.

Option 1: Issuing currency notes

Option 2: Granting loans and advances

Option 3: Controlling monetary policy

Option 4: Managing government finances