Economics - Study Mode

[#1151] ____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks
Correct Answer

(B) Bank rate

Explanation

Solution: Bank rate is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks.

[#1152] In order to control credit, Reserve Bank of India should
Correct Answer

(C) Increase CRR and increase Bank rate

Explanation

Solution: In order to control credit, Reserve Bank of India should Increase CRR and increase Bank rate. During high inflation in the economy, RBI raises the CRR to lower the bank's loanable funds.

[#1153] Which among the following is a function of the Reserve Bank of India?
Correct Answer

(B) Collecting and compilation of statistical information relating to banking & other financial sector

Explanation

Solution: Collecting and compilation of statistical information relating to banking & other financial sector is a function of the Reserve Bank of India.

[#1154] Credit creation power of the commercial banks gets limited by which of the following?
Correct Answer

(D) All of the above

Explanation

Solution: Credit creation power of the commercial banks gets limited by Banking habits of the people, Cash Reserve Ratio and Credit policy of the central bank.

[#1155] Number of times a unit of money changes hands in the course of a year is called
Correct Answer

(C) Velocity of money

Explanation

Solution: Number of times a unit of money changes hands in the course of a year is called Velocity of money. The velocity of money is the number of times a unit of money changes hands during exchanges in a year.