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Ans – (d) Explanation:- Following are the functions of the Reserve Bank of India. 1. Currency Authority or Bank of Issue 2. Banker to the Government 3. Banker’s Bank and Supervisor 4. Controller of Money Supply and Credit

Ans – (c) Explanation:- Demand Deposits are deposits of the general public with commercial banks where account holders withdraw money on demand at any time with the help of cheques. with the help of technology, the amount can also be…

Ans – (c) Explanation:- Total Deposit = Initial Deposits × 1/LRR 4,000 = 400 × 1/LRR LRR = 400/4000 LRR = 1/10 LRR = 0.1

Ans – (b) Explanation:- In the absence of the circulation of any other currency in the economy. It means bank money such as demand deposits also does not exist. In this case, LRR also does not exist. Thus as per…

Ans – (d) Explanation:- All denominations of coins and one rupee note is issued by the Ministry of finance of the government of India. One rupee note bears the signature of finance secretary.

Ans – (a) Explanation:- Cash Reserve Ratio (CRR): It refers to the minimum percentage of net demand and time liabilities, to be kept by commercial banks with the central bank. A change in CRR affects the ability of commercial banks…

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.…