Money and banking

Front

............. is the rate at which commercial banks borrow from central bank in emergency

Back

Bank rate

Front

........... is the ratio of deposits which bank keep with the central bank

Back

CRR

Front

.......... is the rate at which commercial banks borrow short term funds from the central bank by selling their financial securities to the central bank

Back

Repo rate

Front

Demand deposit created by the commercial bank are called

Back

Bank money

Front

Which of the following is not a function of central bank: Banker's supervisor, Lender of last resort, Money creation, Controller of credit?

Back

Money creation

Front

The currency created by the central bank is called

Back

High powered money

Front

.......... are called legal tenders

Back

currency notes and coins

Front

Deposit creation process comes to an end when total reserves equal initial deposits.

Back

total reserves equal initial deposits

Front

If an economy is to control recession like most of the Euro-zone nations, which of the following is appropriate: Reducing repo rate, Reducing CRR, Both (a) and (b), None (a) and (b)?

Back

Both (a) and (b)

Front

If the total deposit created by commercial banks is Rs 20000 cr and LRR is 20%, then amount of initial deposit will be

Back

Rs 4000 cr