Archives Answers

Ans – (d) Explanation:- The name of the central bank in India is the Reserve Bank of India. It does not interact directly with the general public. It is the apex body in the financial sector. It frames the rules…

Ans – (c) Explanation:- There are three types of deposit accounts opened by commercial banks 1. Savings Account 2. Current Account 3. Time Deposits The money in the time deposits is fixed for a certain period of time. Account holders…

Ans – (a) Explanation:- (a) RBI acts as a banker to the Central Government as well as State Governments (b) The Central Bank does not create credit, it’s the commercial bank that creates credit in the economy. (c) All financial…

Ans – (b) Initial deposits made by people are termed as Primary Deposits. Explanation:- Initial deposits are the money in cash deposited by the general public in commercial banks in different types of accounts. It is also called Primary deposits.…

Ans – (b) Explanation:- Margin Requirements:- Margin is the difference between the amount of the loan and the market value of the security offered by the borrower against the loan. If the margin fixed by the Central Bank is 40%,…

Ans – (c) Explanation:- Demand Deposits are the deposits of the general public with the commercial bank. The commercial bank issues the cheques against the demand deposits to the account holders. The account holders can withdraw cash by issuing cheques.…

Ans – (c) Explanation:- Both Statutory Liquidity Ratio and Cash Reserve Ratio are fixed by the Reserve Bank of India. Both are the tools of Monetary policy to control the money supply in the country. The RBI is the apex…

Ans – (d) Explanation:- One of the functions of the Central bank is Currency Authority (or Bank of Issue): The Central Bank has the sole authority for the issue of currency in the country. In India, the Reserve Bank of…

Ans – (c) Explanation:- One Rupee note bears the signature of the Finance Secretary while other currency notes bear the signature of the Governor of RBI. One rupee note is issued by the Ministery of Finance, thus it bears the…

Ans – (b) Explanation:- The Ministry of Finance department of the Government of India has the sole right to mint coins. The Coinage Act, of 1906 authorized the responsibility for coinage the coins to the government of India. All kinds…