Question : Which money market instrument is highlighted in the given statement? Statement: They are generally used by commercial banks to maintain minimum cash balance with Reserve Bank of India.
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: All of the above
Correct Answer: Call money
Solution : Call Money method under which banks borrow from each other so that CRR is maintained. Dear generally used by commercial banks to maintain minimum cash balance with the Reserve Bank of India known as cash reserve ratio or CRR.
Hence, option C is correct.
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Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
Option 4: Commercial bill
Question : _____________is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks of the country.
Option 1: Reserve Repo Rate
Option 2: Base Rate
Option 3: Marginal Rate
Option 4: Repo Rate
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 : 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
Question : Which is the largest commercial Bank of India?
Option 1: State Bank of India
Option 2: Reserve bank of India
Option 3: Both A and b
Option 4: None of the above
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