Question : The rate at which the Reserve Bank of India lends to other commercial banks for the short term has been reduced. What is this rate called?
Option 1: Cash Reserve Rate
Option 2: Reverse Repo Rate
Option 3: Bank Rate
Option 4: Repo Rate
Correct Answer: Repo Rate
Solution : The correct option is the Repo Rate.
The rate at which the Reserve Bank of India (RBI) lends to other commercial banks for the short term is called the repo rate. When the RBI reduces the repo rate, it is typically done to stimulate economic activity by making it cheaper for commercial banks to borrow money from the central bank. This, in turn, can lead to lower interest rates on loans for consumers and businesses, which can encourage borrowing and spending. Conversely, if the RBI increases the repo rate, it aims to control inflation and cool down economic activity by making borrowing more expensive for banks and, ultimately, for consumers and businesses.
College Comparison based on Courses, Placement, Rank, Fee
Application | Eligibility | Admit Card | Answer Key | Preparation Tips | Result | Cutoff
Question : In India, _____fixes the Cash Reserve Ratio(CRR) for the banks in the economy.
Option 1: Reserve Bank of India
Option 2: Ministry of Finance
Option 3: Ministry of External Affairs
Option 4: State Bank of India
Question : The commercial banks of India have to maintain a minimum percentage of cash, gold and other securities before lending loans to their customers. This is called the ____________.
Option 1: Capital Adequacy Ratio
Option 2: Current Account and Savings Account Ratio
Option 3: Statutory Liquidity Ratio
Option 4: Cash Reserve Ratio
Question : Which of the following statements is correct regarding the bank reserves? I. These reserves are kept partly as cash and partly in the form of financial instruments. II. Cash Reserves Ratio are deposits that commercial banks keep with the Reserve Bank of India.
Option 1: Only II
Option 2: Both I and II
Option 3: Only I
Option 4: Neither I nor II
Question : Who amongst the following has never been the Governor of the Reserve Bank of India?
Option 1: D. Subbarao
Option 2: C. Rangarajan
Option 3: B.B. Battacharya
Option 4: Y.V.Ready
Question : Who issues INR 10 notes in India?
Option 2: State Bank of India
Option 3: Union Bank of India
Option 4: Central Bank of India
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile