<<12345678910111213141516171819202122232425>> 1. The components of broad money (M3) areCash in circulation with the publicCash in currency chests with RBI and BanksCredit availed by Central Government from RBICurrency in circulation, demand and time deposits with banks and post office saving depositsQuestion 1 of 25 2. The exemptions from DTL includeTime depositsForeign outward remittances in transitTransactions in Triparty Repo (GSec) with CCILOverseas borrowingsQuestion 2 of 25 3. The liquidity corridor that RBI uses to control short term interest rates is defined/dictated byMSF and SDF ratesCall money marketBank rateSLR and CRRQuestion 3 of 25 4. RTGS has been fully activated by RBI from ______________ Where the settlements are on___________basis rather than day end____________ settlement of cheques in clearing house.August 2003, net, grossOctober 2004, net, grossOctober 2004, gross, netAugust 2004, gross, netQuestion 4 of 25 5. The following institutions facilitate delivery vs. payment(DVP) for secondary market deals in equity and debt paperIDRBTNSDL and CSDLNDSNEFTQuestion 5 of 25 6. What is the primary function of Reserve Bank of India (RBI) in terms of controlling money supply?Directly issuing currency notesMonitoring foreign exchange marketsExercising full control over the money supply (M3)Regulating interest rates in the banking sectorQuestion 6 of 25 7. What are reserve assets of banking?Cash deposits made by individuals in banksThe funds held by banks for their own liquidity needsCash deposited by scheduled commercial banks with RBI to comply with CRR, and investments in government securities to comply with SLRThe foreign currency reserves held by RBIQuestion 7 of 25 8. What is the Cash Reserve Ratio (CRR)?The percentage of funds that banks must maintain with RBIThe interest rate charged by RBI for emergency loans to banksThe minimum amount of cash that banks must keep in their ATMsThe reserve requirement for banks to hold a certain amount of cash in their vaultsQuestion 8 of 25 9. What is the primary purpose of Statutory Liquidity Ratio (SLR) for banks?To ensure banks have enough cash on hand to meet customer withdrawalsTo regulate the amount of credit banks can extend to borrowersTo provide a cushion for banks in case of liquidity shortagesTo encourage banks to invest in government securitiesQuestion 9 of 25 10. What change occurred in the limits of CRR and SLR requirements as per the amendments?The maximum limit for both CRR and SLR was removedThe minimum limit for both CRR and SLR was removedThe minimum limit for CRR was removed, but not for SLRThe maximum limit for CRR was removed, but not for SLRQuestion 10 of 25 11. What does an increase in CRR and SLR requirements imply?Release of impounded fundsAbsorption of liquidity by RBIIncrease in money supplyDecrease in bank reservesQuestion 11 of 25 12. What is the primary responsibility of the Treasury department in a bank regarding CRR and SLR?Meeting the CRR and SLR requirements fullyInvesting surplus funds in high-risk assetsMaximizing profits through speculative tradingAvoiding penalties from the RBIQuestion 12 of 25 13. Which of the following components are considered as part of Demand Liabilities in banking?Fixed deposits and cash certificatesGold deposits and staff security depositsClaims received from DICGC and ECGCBalances in overdue fixed deposits and unclaimed depositsQuestion 13 of 25 14. What is the primary purpose of Cash Reserve Ratio (CRR) in banking?To regulate the amount of credit banks can extend to borrowersTo ensure banks have enough cash on hand to meet customer withdrawalsTo provide a cushion for banks in case of liquidity shortagesTo maintain a reserve of gold and government securitiesQuestion 14 of 25 15. Which liabilities are exempted from the CRR stipulation?Net income tax provision and unpaid dividendsBill rediscounted by a bank with eligible financial institutionsCredit balances in ACU (US$) Accounts and Offshore Banking Units liabilitiesFixed deposits and cumulative depositsQuestion 15 of 25 16. What assets are eligible to be maintained as part of Statutory Liquidity Ratio (SLR) by banks?Cash balances and gold (valued at market price)Equity shares and corporate bondsReal estate properties and land holdingsLoans and advances to customersQuestion 16 of 25 17. What penalty does a bank face for defaulting on the maintenance of daily CRR balance?A penal interest of 1% p.a. above the Bank RateA penal interest of 3% p.a. above the Bank RateA fine imposed by the Ministry of FinanceSuspension of banking operations for a dayQuestion 17 of 25 18. How do changes in reserve ratios affect money supply?Increase in reserve ratios decreases money supplyIncrease in reserve ratios increases money supplyDecrease in reserve ratios decreases money supplyDecrease in reserve ratios has no impact on money supplyQuestion 18 of 25 19. What does the Liquidity Adjustment Facility (LAF) primarily aim to monitor?Cash Reserve Ratio (CRR) compliance by banksDay-to-day liquidity in the marketGovernment securities market movementsForeign exchange rate fluctuationsQuestion 19 of 25 20. What measures did RBI take on February 3, 2015, to address liquidity constraints?Increased the Cash Reserve Ratio (CRR)Phased out the Export Credit Refinance facilityIntroduced a new window called Fixed Rate RepoReduced the frequency of Repo auctionsQuestion 20 of 25 21. How does RBI use the Repo rate in its monetary policy framework?To directly regulate interest rates in the marketTo benchmark short-term interest ratesTo control inflation through open market operationsTo manage foreign exchange reservesQuestion 21 of 25 22. What is the minimum bid amount required for banks to participate in the Liquidity Adjustment Facility (LAF) through repo transactions with RBI?Rs. 1 croreRs. 10 lakhRs. 5 croreRs. 50 lakhQuestion 22 of 25 23. What was the primary objective of introducing the Negotiated Dealing System (NDS) by the Reserve Bank of India (RBI) in February 2002?Automatic electronic reporting and settlement processAuctions on an electronic platformA trading platform for government securities on a negotiated basisIntroduction of a quote-driven mechanismQuestion 23 of 25 24. What role does FX Clear, developed by CCIL, play in foreign exchange transactions?Providing delivery vs. payment (DVP) for secondary market dealsClearing inter-bank USD/Rupee transactions on a gross basisSettling inter-bank USD/Rupee and cross-currency deals on a net basisFacilitating trading in government securities on a negotiated basisQuestion 24 of 25 25. What is the primary function of the Real Time Gross Settlement System (RTGS) implemented by RBI?Facilitating paperless clearing for chequesSettling inter-bank payments and customer remittances instantlyProviding intra-day liquidity through automatic repoIntegrating bank accounts with branch offices of RBIQuestion 25 of 25 Loading...
