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Bank Rates and Monetary Policy

31.

RBI has launched a portal to curb illegal money pooling by firms called ___________.
 

Answer: A

To prevent illegal and unauthorised pooling of funds by firms, RBI launched a website called sachet.rbi.org.in which alerts people regarding entities allowed to collect deposits.

1. Portal will facilitate filing, tracking of complaints besides providing information about whether any particular entity is permitted to accept deposits and registered with the regulatory authority for the same.

2. Sachet means the Hindi word for later and will help regulators to assist members of the public.

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32.

RBI has tightened the rules around JLFs. What does JLF stand for?

Answer: A

No answer description available for this question.

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33.

The Cash Reserve Ratio is an effective instrument of credit control. Under the RBI Act, 1934 every ______bank has to keep certain minimum cash reserves with RBI:

Answer: B

No answer description available for this question.
 

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Answer: A

Open Market Operations (OMO) refer to the purchase and sale of the Government Securities (G-Secs) by RBI from / to market.

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36.

Which out of the following is/are correct regarding Cash Reserve Ratio (CRR)?


a) Section 42 of RBI Act, 1934 lays foundation for maintaining CRR by scheduled commercial bank with RBI.
b) Section 24 of the Banking Regulations Act, 1949 provide powers to RBI to levy CRR on banks
c) At present CRR is 4 per cent of NDTL
d) Banks have to maintain minimum 95 per cent of the required CRR on a daily basis and 100 per cent on an average basis during the fortnight


Select the correct answer from following options:

Answer: C

According to Section 42 of the Reserve Bank of India Act, 1934, each scheduled commercial bank has to maintain a minimum cash balance with the Reserve Bank as cash reserve ratio (CRR) which is prescribed by the Reserve Bank from time to time as certain percentage of its net demand and time liabilities (NDTL) relating to the second preceding fortnight. As of now, the CRR is 4 per cent of NDTL. Banks have to maintain minimum 95 per cent of the required CRR on a daily basis and 100 per cent on an average basis during the fortnight

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37.

What is/are the purpose(s) of Marginal Cost of Funds Lending Rate(MCLR) announced by RBI? (CSE, 2016)
i) These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
ii) These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as banks.
Select the correct answer using the code given below:

Answer: A

No answer description available for this question.
 

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38.

Which of these is a quantitative instrument of Monetary Policy?

Answer: D

The quantitative instruments are: Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR Bank Rate etc.

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39.

What will be the impact on the Cash Reserves of commercial banks if RBI conduct a sale of securities?

Answer: B

No answer description available for this question.
 

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Answer: B

No answer description available for this question.

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