Money and Banking 1

What is inflation?

• rise in all prices

• rise in most prices

• rise in some prices

• rise in general prices

Why would a company need to issue stock?

• To increase its' customer base.

• To raise money.

• To stop the government from regulating it.

• To show customers that it's successful.

The possibility of losing some or all of a particiular investment.

• risk
• index
• industry
• profit

A company owned by families or a small number of investors and do not issue stock to the public.

• public company
• industry
• private company
• portfolio

What is the reserve deposit ration (rdr)?

• the proportion of money RBI lends to commercial banks

• the proportion of total deposits commercial banks keep as reserves

• the total proportion of money that commercial banks lend to the customers

Which bank is called lender of last resort?

• Commercial bank

• Agricultural bank

• Central bank

Deposits which are payable after the expiry of a fixed period are called -

• time deposits.

• demand deposits.

• NONE

Buying and selling of government securities by the central bank from/to banks is called?

• open market operations

• margin

• banking

Financial institutions that accept deposits and make loans are called

• Exchanges

• Banks

• Over the counter Markets

The delivery of financial services electronically is called:

• E-Business

• E-Finance

• E-Commerce