BANKING QUIZ

1. Which one of the following commission recommended for the creation of a central bank (RBI) in India?
a) The planning commission of India
b) The finance commission of India
c) Rangarajan commission
d) The Hilton – Young commission

2. Every bank has to keep certain minimum cash balance with RBI is called
a) Variable reserve ratio
b) Cash reserve ratio
c) Cash discount ratio
d) Trade discount ratio

3. The RBI lends money to commercial banks is called
a) Repo rate
b) Reverse repo rate
c) Revise repo rate
d) Renewal repo rate

4. The RBI borrows money from commercial banks within the country is called
a) Repo rate
b) Reverse repo rate
c) Revise repo rate
d) Renewal repo rate

5. Which one of the following is not a quantitative credit control measure of RBI?
a) Bank Rate Policy
b) Open Market Operation
c) Cash Reserve Ratio
d) Moral Suasion

6. An increase in the Bank Rate generally indicates that the
a) Market rate of interest is likely to fall
b) Central Bank is no longer making loans to Commercial Banks
c) Central Bank is following an easy money policy
d) Central Bank is following tight money policy

7. Which one of the following committee recommended for to establishment Regional Rural Bank in India?
a) Narasimhan Commitee
b) Kelhar Committee
c) Abid Hussain Committee
d) Tarapore Committee

8. Who recommended to RBI to follow Broad Money (M3) for measuring money supply in India?
a) Sukhamoy Chakravarty
b) PL Tandon
c) Rangarajan
d) Raja Chelliah

9. Which one of the following money supply follow by RBI in India?
a) M1= C + DD + OD
b) M2= M1 + Savings deposits with the post office savings banks
c) M3 = M1 + Time Deposits with the banks
d) M4 = M3 + Total Deposits with Post Office Savings Organisation

10. A bank account which does not require any minimum balance is called
a) No balance account
b) Zero balance account
c) Nil Balance Account
d) No Money Account