113 + Interview Questions in BANKING IN GENERAL AWARENESS Page 1 InterviewSolution

1.	Kamal deposits Rs 550 per month in a recurring deposit account for `1(1)/(2)` year at `8%` per annum. Find the interest that kamal will receive at the time of maturity.A. Rs. 550B. Rs. 627C. Rs. 230D. Rs. 346
Answer» Correct Answer - B (i) Use, `SI(Pxxn(n+1))/(2)xx(R)/(1200)` (ii) Given P =Rs. 550, n=18 months, `R=8%` Use, `I=(Pxxn(n+1))/(2)xx(R)/(100)` to find interest reviced.

Discussion

2.	Prabhu deposits Rs. 600 per month in a recurring deposit account for 1 year at `8%` per annum. Find the interest received by Prabhu.A. Rs. 424B. Rs. 312C. Rs. 360D. Rs. 450
Answer» Correct Answer - B Use `SI(Pxxn(n+1))/(2)xx(R)/(1200)`

Discussion

3.	Thsuhar opens a recurring deposit account with a bank and deposits Rs. 500 per month for `1(1)/(2)` years. If he receives Rs. 570 as interest, then find the rate of interest offered by the bank.
Answer» Correct Answer - `8%` per annum

Discussion

4.	Subhash makes a fixedA. Rs. 65,010B. Rs. 11,810C. Rs. 62,310D. Rs. 12,100
Answer» Correct Answer - A

Discussion

5.	Himesh opened a saving bank account with a bank on `3-6-2007` with Rs. 500. His transactions during june and July were as follows: `{:(,"Deposited Rs. 500 on 8-6-2007."),(,"Withdrew Rs. 300 on 11-6-2007."),(,"Deposited Rs.500 on 13-6-2007."),(,"Withdrew Rs.350 on 29-6-2007"),(,"Deposited Rs.500 on 3-7-2007."),(,"Diposited Rs. 500 on 12-7-2007."):}`
Answer» Correct Answer - Rs. 700, Rs. 1350 and Rs. 1850

Discussion

6.	A Bank is a ……… (a) Financial institution (b) Corporate (c) An Industry (d) Service institutions
Answer» A Bank is a Financial institution.

Discussion

7.	The State Financial Corporation Act was passed by ………… (a) Government of India (b) Government of Tamilnadu (c) Government of Union Territories (d) Local Government.
Answer» (a) Government of India

Discussion

8.	Write the meaning of Open market operations?
Answer» 1. In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market. 2. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns. 3. When the banks and the private individuals purchase these securities they have to make payments for these securities to the Central Bank.

8.

Write the meaning of Open market operations?

Answer»

1. In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market.

2. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns.

3. When the banks and the private individuals purchase these securities they have to make payments for these securities to the Central Bank.

Discussion

9.	Monetary policy is formulated by …………(a) Co – operative banks (b) Commercial banks (c) Central Bank(d) Foreign banks
Answer» (c) Central Bank

Discussion

10.	Which of the following is correctly matched.(a) CRR – Current Reserve Ratio (b) Saving deposits – Cheque facilities (c) Bank rate policy – High interest (d) Adviser to government – SBI
Answer» (b) Saving deposits – Cheque facilities

Discussion

11.	State whether the statements are true or false.(i) The Central bank of a country acts as the banker, fiscal agent and advisor to the government. (ii) The banks expand their loans resulting in the expansion of investment employment production and prices.(a) Both (i) and (ii) are true (b) Both (i) and (ii) are false (c) (i) is true but (ii) is false (d) (i) is false but (ii) is true
Answer» (a) Both (i) and (ii) are true

Discussion

12.	Distinguish between CRR and SLR?
Answer» CRR: 1. The Central Bank controls credit by changing the Cash Reserves Ratio. 2. Commercial Banks have excessive cash reserves on the basis of which they are creating too much of credit, this will be harmful for the larger interest of the economy. 3. So it will raise the cash reserve ratio which the Commercial Banks are required to maintain with the Central Bank. SLR: 1. Statutory Liquidity Ratio (SLR) is the amount which a bank has to maintain in the form of cash, gold or approved securities. 2. The quantum is specified as some percentage of the total demand and time liabilities. 3. The liabilities of the bank which are payable on demand anytime, and those liabilities which are accruing in one month’s time due to maturity.

12.

Distinguish between CRR and SLR?

Answer»

CRR:

1. The Central Bank controls credit by changing the Cash Reserves Ratio.

2. Commercial Banks have excessive cash reserves on the basis of which they are creating too much of credit, this will be harmful for the larger interest of the economy.

3. So it will raise the cash reserve ratio which the Commercial Banks are required to maintain with the Central Bank.

SLR:

1. Statutory Liquidity Ratio (SLR) is the amount which a bank has to maintain in the form of cash, gold or approved securities.

2. The quantum is specified as some percentage of the total demand and time liabilities.

3. The liabilities of the bank which are payable on demand anytime, and those liabilities which are accruing in one month’s time due to maturity.

Discussion

13.	Match the following and choose the correct answerby using codes given below.A. NABARD – (i) Internet banking B. SFC – (ii) Short term seasonal credit C. Rationing of credit – (iii) State level institution D. Online banking – (iv) Qualitative credit control of RBICodes:(a) A (i) B (ii) C (iii) D (iv)(b) A (iii) B (iv) C (i) D (ii)(c) A (ii) B (iii) C (iv) D (i)(d) A (iv) B (i) C (ii) D (iii)
Answer» (c) A (ii) B (iii) C (iv) D (i)

Discussion

14.	Match the following and choose the correct answerby using codes given below.A. UTI – (i) Quantitative credit control B. Open market operation – (ii) Mutual fund C. Bank – (iii) Automatic Teller mechine D. ATM – (iv) Financial Institution Codes: (a) A (i) B (ii) C (iii) D (iv) (b) A (iii) B (iv) C (ii) D (i) (c) A (iv) B (iii) C (i) D (ii) (d) A (ii) B (i) C (iv) D (iii)
Answer» (d) A (ii) B (i) C (iv) D (iii)

Discussion

15.	………… help in proper allocation of funds among different regions of the economy. (a) Central banks (b) Co – operative banks (c) Commercial banks (d) Agriculture banks
Answer» (c) Commercial banks

Discussion

16.	Which of the following is correctly matched.(a) EXIM Bank – Export and Import(b) NABARD – Industrial finance (c) Bank – Excess money (d) Fixed Deposits – Bank saving
Answer» (a) EXIM Bank – Export and Import

Discussion

17.	Match the following and choose the correct answerby using codes given below.A. NBFI – (i) Monetary policy B. Per Capita Income – (ii) Minimum amount of fund C. Inflation – (iii) Economic growth D. RTGS – (iv) Non – bank Financial Institution Codes: (a) A (iii) B (ii) C (iv) D (i)(b) A (iv) B (iii) C (i) D (ii) (c) A (ii) B (i) C (iii) D (iv) (d) A (i) B (iv) C (ii) D (iii)
Answer» (b) A (iv) B (iii) C (i) D (ii)

Discussion

18.	Define Commercial banks?
Answer» Commercial bank refers to a bank, or a division of a large bank, which more specifically deals with deposit and loan services provided to corporations or large/middle-sized business – as opposed to individual members of the public/small business.

Discussion

19.	Define Central bank?
Answer» 1. A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates. 2. Central banks also usually oversee the commercial banking system of their respective countries.

19.

Define Central bank?

Answer»

1. A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates.

2. Central banks also usually oversee the commercial banking system of their respective countries.

Discussion

20.	Expansions of ATM. (a) Automated Teller Machine (b) Adjustment Teller Machine (c) Automatic Teller mechanism (d) Any Time Money
Answer» (a) Automated Teller Machine

Discussion

21.	Match the following and choose the correct answerby using codes given below.A. Transfer of funds – (i) Buying and selling B. Commercial bank – (ii) Clearing C. Open market operation – (iii) Interest not given D. Demand deposits – (iv) Profit makingCodes:(a) A (ii) B (iv) C (i) D (iii) (b) A (i) B (iii) C (ii) D (iv) (c) A (iii) B (ii) C (iv) D (i) (d) A (iv) B (i) C (iii) D (ii)
Answer» (a) A (ii) B (iv) C (i) D (iii)

Discussion

22.	State whether the statements are true or false.(i) For maintaining saving deposits, cheque facilities can be enjoyed.(ii) Fixed Deposits are otherwise known as time deposits.(a) Both (i) and (ii) are true (b) Both (i) and (ii) are false (c) (i) is true but (ii) is false (d) (i) is false but (ii) is true
Answer» (a) Both (i) and (ii) are true

Discussion

23.	What is credit creation?
Answer» 1. Credit Creation means the multiplication of loans and advances. 2. Commercial banks receive deposits from the public and use these deposits to give loans. 3. However, loans offered are many times more than the deposits received by banks. 4. This function of banks is known as ‘Credit Creation’.

23.

What is credit creation?

Answer»

1. Credit Creation means the multiplication of loans and advances.

2. Commercial banks receive deposits from the public and use these deposits to give loans.

3. However, loans offered are many times more than the deposits received by banks.

4. This function of banks is known as ‘Credit Creation’.

Discussion

24.	Credit creation means ………… (a) Multiplication of loans and advances (b) Revenue (c) Expenditure (d) Debt
Answer» (a) Multiplication of loans and advances

Discussion

25.	…………… Bank regulates the credit and currency according to the economic situation of the country. (a) State(b) Commercial (c) RBI (d) Agriculture
Answer» (b) Economic stability

Discussion

26.	Which of the following is not correctly matched.(a) RBI – Central Bank of SBI(b) ARDC – The agricultural refinance development corporation (c) Bank Crdit – Bank loans and advances (d) Moral suasion – Persuasion
Answer» (a) RBI – Central Bank of SBI

Discussion

27.	Match the following and choose the correct answer by using codes given below.A. Saving Deposits – (i) Official minimum rate B. Cash credit – (ii) Cheque facilities C. Bank rate – (iii) Facility to business man D. Over draft – (iv) Collateral securityCodes:(a) A (ii) B (iv) C (i) D (iii) (b) A (i) B (ii) C (iii) D (iv) (c) A (iii) B (i) C (iv) D (ii) (d) A (iv) B (iii) C (ii) D (i)
Answer» (a) A (ii) B (iv) C (i) D (iii)

Discussion

28.	Write the mechanism of credit creation by commercial banks?
Answer» Mechanism / Technique of Credit Creation by Commercial Banks: 1. Bank credit refers to bank loans and advances. 2. Money is said to be created when the banks, through their lending activities, make a net addition to the total supply of money in the economy. 3. Money is said to be destroyed when the loans are repaid by the borrowers to the banks and consequently the credit already created by the banks is wiped out in the process. 4. Banks have the power to expand or contract demand deposits and they exercise this power through granting more or less loans and advances and acquiring other assets. 5. This power of commercial bank to create deposits through expanding their loans and advances is known as credit creation.

28.

Write the mechanism of credit creation by commercial banks?

Answer»

Mechanism / Technique of Credit Creation by Commercial Banks:

1. Bank credit refers to bank loans and advances.

2. Money is said to be created when the banks, through their lending activities, make a net addition to the total supply of money in the economy.

3. Money is said to be destroyed when the loans are repaid by the borrowers to the banks and consequently the credit already created by the banks is wiped out in the process.

4. Banks have the power to expand or contract demand deposits and they exercise this power through granting more or less loans and advances and acquiring other assets.

5. This power of commercial bank to create deposits through expanding their loans and advances is known as credit creation.

Discussion

29.	The rate of interest of every Central bank is known as ………(a) Interest rate(b) Credit rate (c) Debit rate (d) Bank rate
Answer» (d) Bank rate

Discussion

30.	Overdraft is a facility offered by commercial banks to …………(a) Exporters (b) Importers (c) Farmers (d) Businessmen
Answer» (d) Businessmen

Discussion

31.	The issue of paper money is the most important function of a ………(a) Commercial Bank (b) Central Bank (c) ICICI Bank (d) State Bank
Answer» (b) Central Bank

Discussion

32.	Open Market operations enable the ………to reduce the money supply in the economy. (a) Commercial bank (b) SBI (c) ICICI (d) RBI
Answer» Open Market operations enable the RBI to reduce the money supply in the economy.

Discussion

33.	Commercial Banks create credit in favour of the …………(a) Consumers (b) Business men (c) Customers (d) Agriculturists
Answer» (c) Customers

Discussion

34.	Lender of the last resort is one of the functions of ……… (a) Central Bank (b) Commercial banks (c) Land Development Banks (d) Co – operative banks
Answer» (a) Central Bank

Discussion

35.	Fixed Deposits are otherwise known as ………(a) Bank Deposits (b) Customer’s Deposits (c) Time Deposits (d) Money Deposits
Answer» (c) Time Deposits

Discussion

36.	The Functions of commercial banks are broadly classified into……… (a) Primary Functions (b) Secondary functions (c) Other functions (d) a, b, and c
Answer» (d) a, b, and c

Discussion

37.	The commercial banks only deal in foreign exchange under the directions of the ………(a) State bank(b) Central bank (c) Commercial bank (d) Co – operative bank
Answer» (b) Central bank

Discussion

38.	The amount of cash kept by commercial banks to meet the day to day transactions is known as ………(a) Bank cash (b) Commercial bank cash (c) Reserve cash (d) Cheque
Answer» (c) Reserve cash

Discussion

39.	Commercial Bank Secondary Functions (a) Agency functions (b) General utility services (c) Transfer of bank (d) Credit creation
Answer» (c) Transfer of bank

Discussion

40.	Specify the functions of IFCI?
Answer» 1. Long – term loans; both in rupees and foreign currencies. 2. Underwriting of equity, preference and debenture issues. 3. Subscribing to equity, preference and debenture issues. 4. Guaranteeing the deferred payments in respect of machinery imported from abroad or purchased in India; and 5. Guaranteeing of loans raised in foreign currency from foreign financial institutions.

40.

Specify the functions of IFCI?

Answer»

1. Long – term loans; both in rupees and foreign currencies.

2. Underwriting of equity, preference and debenture issues.

3. Subscribing to equity, preference and debenture issues.

4. Guaranteeing the deferred payments in respect of machinery imported from abroad or purchased in India; and

5. Guaranteeing of loans raised in foreign currency from foreign financial institutions.

Discussion

41.	John had a savings bank account in a bank. In the months of april, 97 and May, 97 He had the following entries in his passbookDateParticularsWithdrawals (In Rs)Deposits (In Rs)Balance (In Rs)April 1By Balance4,600.00April 7By cash1,200.005,800.00April 24To Cheque800.005,000.00May 16By Cheque2,000.007,000.00May 29To Cash1,500.005,500.00Find the amounts on which John will get interest for the months of April, 97 and May 97.
Answer» Since balance on 7^th April = Rs. 5,800 and balance on 24^thApril = Rs. 5,000 Then minimum balance for the month of April = Rs. 5,000 Ans. Since balance on 10^th May = Rs. 5,000 Balance on 16^th May = Rs. 7,000 Balance on 29^th May = Rs. 5,500 Then minimum balance for the month of May = Rs. 5,000 Ans.

41.

John had a savings bank account in a bank. In the months of april, 97 and May, 97 He had the following entries in his passbookDateParticularsWithdrawals (In Rs)Deposits (In Rs)Balance (In Rs)April 1By Balance4,600.00April 7By cash1,200.005,800.00April 24To Cheque800.005,000.00May 16By Cheque2,000.007,000.00May 29To Cash1,500.005,500.00Find the amounts on which John will get interest for the months of April, 97 and May 97.

Answer»

Since balance on 7^th April = Rs. 5,800

and balance on 24^thApril = Rs. 5,000

Then minimum balance for the month of April = Rs. 5,000 Ans.

Since balance on 10^th May = Rs. 5,000

Balance on 16^th May = Rs. 7,000

Balance on 29^th May = Rs. 5,500

Then minimum balance for the month of May = Rs. 5,000 Ans.

Discussion

42.	A man opened a savings bank account with a bank on 22nd Feb., 1998 and deposited Rs. 300. He further deposited Rs. 1,500 on 5th march 1998 and withdrew Rs. 500 on 12th April 1998. Assuming that he neither deposited not withdrew any money up to the last day of May 1998; write the amounts on which he would receive interest for:(i) Feb., 1998(ii) March, 98(iii) April, 98(iv) May, 98
Answer» Balance on 22^nd Feb. = Rs. 300 Balance on 5^th March = Rs. 300 + Rs. 1,500 = Rs. 1,800 Balance on 12^th April = Rs. 1,800 – Rs. 500 = Rs. 1,300 (i) Minimum balance for the month of Feb. = Nil since he opens the account after 10^th of the month. (ii) Minimum balance for the month of March = Rs. 1,800 (iii) Minimum balance for the month of April = Rs. 1,300 (iv) Minimum balance for the month of May = Rs. 1,300

42.

A man opened a savings bank account with a bank on 22nd Feb., 1998 and deposited Rs. 300. He further deposited Rs. 1,500 on 5th march 1998 and withdrew Rs. 500 on 12th April 1998. Assuming that he neither deposited not withdrew any money up to the last day of May 1998; write the amounts on which he would receive interest for:(i) Feb., 1998(ii) March, 98(iii) April, 98(iv) May, 98

Answer»

Balance on 22^nd Feb. = Rs. 300

Balance on 5^th March = Rs. 300 + Rs. 1,500 = Rs. 1,800

Balance on 12^th April = Rs. 1,800 – Rs. 500 = Rs. 1,300

(i) Minimum balance for the month of Feb. = Nil since he opens the account after 10^th of the month.

(ii) Minimum balance for the month of March = Rs. 1,800

(iii) Minimum balance for the month of April = Rs. 1,300

(iv) Minimum balance for the month of May = Rs. 1,300

Discussion

43.	Which of the following is not a Quantitative Method of Credit by : (Choose the correct alternative)A. Open market operationB. Margin RequirementsC. Variables reserve ratioD. Bank Rate Policy
Answer» Correct Answer - b B. Margin Requirements is not a Quantitative Method of Credit.

Discussion

44.	The one rupee note and coins are issued by :A. RBI (Central Bank)B. Commerical BankC. Ministry of FinanceD. Central Governmet
Answer» Correct Answer - c C. The one rupee note and coins are issued by Ministry of Finance.

Discussion

45.	Other name for legal reserve requirement is _A. Cash reserve ratioB. Statutory liquildity ratioC. Variables reserve ratioD. Bank rate
Answer» Correct Answer - c C. Other name for legal reserve requirement is Variables reserve ratio.

Discussion

46.	Deamand deposite include (Chosse the correct alternative):A. Saving account deposits and fixed depositsB. Saving account deposits and current account depositsC. Current account deposits and fixed depositsD. All types of deposits
Answer» Correct Answer - b B. Demand deposit include Saving account deposits and current account deposits.

Discussion

47.	_ refer to that portion of total deposite of a commericial bank which it has to keep with itself in the form of liquid assets.A. Cash reserve ratioB. Statutory liquidity ratioC. Bank RateD. Repo Rate
Answer» Correct Answer - b B. Statutory liquidity ratio refer to that portion of total deposit of a commercial bank which it has to keep with itself in the form of liquid assets.

Discussion

48.	Which of the following is not the function of the Central Bank ? (Choose the correct alternative )A. Banking facilities to governmentB. Banking facilities to publicC. Lending to governmentD. Lending to commercial banks
Answer» Correct Answer - b B. Banking facilities to public is not the function of the Central Bank.

Discussion

49.	There is an inverse relationship between legal reserve ratio (LRR) and value of money multiplier. OR Size of money multiplier is given by the inverse of LRR.
Answer» TRUE : Money multiplier is inversely related to LHH as Money Multiplier `= (1)/(LRR)`

Discussion

50.	Calculate the value of the money multiplier and total created if intial deposit is of ₹ 5000 crores and LRR is 10%.
Answer» Given, LRR is 10% or 0.1 `"Money Multiplier"=(1)/(LR R)=(1)/(0.1)=10` If initial deposit is of â‚¹ 500 crores , then : Total Deposit = `"Initial Deposit" xx " Money Multiplier = 500 xx 10` = â‚¹ 5,000 crores

Discussion

Explore topic-wise InterviewSolutions in .

Kamal deposits Rs 550 per month in a recurring deposit account for `1(1)/(2)` year at `8%` per annum. Find the interest that kamal will receive at the time of maturity.A. Rs. 550B. Rs. 627C. Rs. 230D. Rs. 346

Prabhu deposits Rs. 600 per month in a recurring deposit account for 1 year at `8%` per annum. Find the interest received by Prabhu.A. Rs. 424B. Rs. 312C. Rs. 360D. Rs. 450

Thsuhar opens a recurring deposit account with a bank and deposits Rs. 500 per month for `1(1)/(2)` years. If he receives Rs. 570 as interest, then find the rate of interest offered by the bank.

Subhash makes a fixedA. Rs. 65,010B. Rs. 11,810C. Rs. 62,310D. Rs. 12,100

A Bank is a ……… (a) Financial institution (b) Corporate (c) An Industry (d) Service institutions

The State Financial Corporation Act was passed by ………… (a) Government of India (b) Government of Tamilnadu (c) Government of Union Territories (d) Local Government.

Write the meaning of Open market operations?

Monetary policy is formulated by …………(a) Co – operative banks (b) Commercial banks (c) Central Bank(d) Foreign banks

Which of the following is correctly matched.(a) CRR – Current Reserve Ratio (b) Saving deposits – Cheque facilities (c) Bank rate policy – High interest (d) Adviser to government – SBI

Distinguish between CRR and SLR?

………… help in proper allocation of funds among different regions of the economy. (a) Central banks (b) Co – operative banks (c) Commercial banks (d) Agriculture banks

Which of the following is correctly matched.(a) EXIM Bank – Export and Import(b) NABARD – Industrial finance (c) Bank – Excess money (d) Fixed Deposits – Bank saving

Define Commercial banks?

Define Central bank?

Expansions of ATM. (a) Automated Teller Machine (b) Adjustment Teller Machine (c) Automatic Teller mechanism (d) Any Time Money

What is credit creation?

Credit creation means ………… (a) Multiplication of loans and advances (b) Revenue (c) Expenditure (d) Debt

…………… Bank regulates the credit and currency according to the economic situation of the country. (a) State(b) Commercial (c) RBI (d) Agriculture

Which of the following is not correctly matched.(a) RBI – Central Bank of SBI(b) ARDC – The agricultural refinance development corporation (c) Bank Crdit – Bank loans and advances (d) Moral suasion – Persuasion

Write the mechanism of credit creation by commercial banks?

The rate of interest of every Central bank is known as ………(a) Interest rate(b) Credit rate (c) Debit rate (d) Bank rate

Overdraft is a facility offered by commercial banks to …………(a) Exporters (b) Importers (c) Farmers (d) Businessmen

The issue of paper money is the most important function of a ………(a) Commercial Bank (b) Central Bank (c) ICICI Bank (d) State Bank

Open Market operations enable the ………to reduce the money supply in the economy. (a) Commercial bank (b) SBI (c) ICICI (d) RBI

Commercial Banks create credit in favour of the …………(a) Consumers (b) Business men (c) Customers (d) Agriculturists

Lender of the last resort is one of the functions of ……… (a) Central Bank (b) Commercial banks (c) Land Development Banks (d) Co – operative banks

Fixed Deposits are otherwise known as ………(a) Bank Deposits (b) Customer’s Deposits (c) Time Deposits (d) Money Deposits

The Functions of commercial banks are broadly classified into……… (a) Primary Functions (b) Secondary functions (c) Other functions (d) a, b, and c

The commercial banks only deal in foreign exchange under the directions of the ………(a) State bank(b) Central bank (c) Commercial bank (d) Co – operative bank

The amount of cash kept by commercial banks to meet the day to day transactions is known as ………(a) Bank cash (b) Commercial bank cash (c) Reserve cash (d) Cheque

Commercial Bank Secondary Functions (a) Agency functions (b) General utility services (c) Transfer of bank (d) Credit creation

Specify the functions of IFCI?

Which of the following is not a Quantitative Method of Credit by : (Choose the correct alternative)A. Open market operationB. Margin RequirementsC. Variables reserve ratioD. Bank Rate Policy

The one rupee note and coins are issued by :A. RBI (Central Bank)B. Commerical BankC. Ministry of FinanceD. Central Governmet

Other name for legal reserve requirement is _A. Cash reserve ratioB. Statutory liquildity ratioC. Variables reserve ratioD. Bank rate

Deamand deposite include (Chosse the correct alternative):A. Saving account deposits and fixed depositsB. Saving account deposits and current account depositsC. Current account deposits and fixed depositsD. All types of deposits

_ refer to that portion of total deposite of a commericial bank which it has to keep with itself in the form of liquid assets.A. Cash reserve ratioB. Statutory liquidity ratioC. Bank RateD. Repo Rate

Which of the following is not the function of the Central Bank ? (Choose the correct alternative )A. Banking facilities to governmentB. Banking facilities to publicC. Lending to governmentD. Lending to commercial banks

There is an inverse relationship between legal reserve ratio (LRR) and value of money multiplier. OR Size of money multiplier is given by the inverse of LRR.

Calculate the value of the money multiplier and total created if intial deposit is of ₹ 5000 crores and LRR is 10%.