Management (Quiz) MCQs

Which among the following is called the rate of interest charged by RBI for lending money to various commercial banks by rediscounting of the bills in India?

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Which among the following is called the rate of interest charged by RBI for lending money to various commercial banks by rediscounting of the bills in India?

Which among the following is called the rate of interest charged by RBI for lending money to various commercial banks by rediscounting of the bills in India?

    1. Bank rate
    2. Discount window
    3. Monetary Policy
    4. Overnight rate

 Correct Answer: Bank rate

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What is the Reserve Deposit Ratio ?

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What is the Reserve Deposit Ratio ?

What is the Reserve Deposit Ratio ?

    1. The proportion of money RBI lends to commercial banks
    2. The proportion of total deposits commercial banks keep as reserves
    3. The total proportion of money that commercial banks lend to the customers
    4. None of the above

Correct Answer: The proportion of total deposits commercial banks keep as reserves

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What is Currency Deposit Ratio (CDR)?

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What is Currency Deposit Ratio (CDR)?

What is Currency Deposit Ratio (CDR)?

    1. Ratio of money held by the public in currency to that of money held in bank deposits
    2. Ratio of money held by the public in bank deposits to that of money held by public in currency
    3. Ratio of money held in demand drafts to that of money held in treasury bonds
    4. None of the above

Correct Answer: Ratio of money held by the public in currency to that of money held in bank deposits

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