Money and Banking (Part 3) One Liner Questions & Answers


Questions Answers
63 The mandatory proportion of the total deposits and reserves of the commercial banks deposited with the Reserve Bank of India is called – Cash Reserve Ratio
64 An increase in CRR by the Reserve Bank Of India results in – Reduction in liquidity in the economy
65 If the Cash Reserve Ratio is lowered by the RBI, it’s impact on credit creation will be – Increase
66 When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean? The commercial banks will have less money to lend
67 Repo rate comes under the purview of – Monetary Policy
68 The interest rate at which the Reserve Bank of India lends to Commercial banks in the short term to maintain liquidity is known as – Repo Rate
69 The rate at which banks lend to Reserve Bank of India is known as – Reverse Repo Rate
70 Inflation rate based on Consumer Price Index increases if – Bank rate is decreased
71 An increase in the Bank Rate generally indicates that the – The Central Bank is following a tight money policy
72 The lowering of Bank Rate by the Reserve Bank of India leads to – More liquidity in the market
73 Bank Rate implies the rate of interest – At which the Reserve Bank of India discounts the Bills of Exchange
74 Bank rate means – Official rate of interest charged by Central Bank
75 At present, who is the Governor of the Reserve Bank of India? Shaktikanta Das
76 The accounting year of the Reserve Bank of India is – April – March
77 Negotiable Instruments Act came into effect in – 1882
78 The meaning of company limited by shares is – Restricted liability of holders
79 An International Financial Services Centre has been set up at – Gandhinagar
80 When was the Life Insurance Corporation of India established? 1956
81 The Insurance Regulatory and Development Authority was set up in India on – April, 2000
82 For regulation of the insurance business in the country, the government has formed – Insurance Regulatory and Development Authority
83 IRDAI regulates – Insurance Companies
84 IRDAI has set up a panel under whose chairmanship to examine the need for standard cyber liability insurance products. – P. Umesh
85 Money received by the Government under the ‘State Provident Funds’ is credited to the – Public Accounts Fund
86 SEBI Act was passed in the year – 1992
87 To prevent the recurrence of scams in the Indian capital market, the Government of India has assigned regulatory powers to – SEBI
88 Private Sector Mutual Funds in India were permitted in – 1993
89 The Head Office of the National Stock Exchange of India is located at – Mumbai
90 A rise in ‘SENSEX’ means –
An overall rise in prices of shares of group of companies registered with Bombay Stock Exchange
91 ‘SENSEX’ is the popular Index of the Bombay Stock Exchange (BSE). It is measured on the basis of how many blue chip companies are listed in BSE. – 30
92 How many companies are included in BSE-GREENEX? 25
93 In the parlance of financial investments, the term ‘bear’ denotes –
An investor who feels that the price of a particular security is going to fall
94 Insider trading is related to – Share market
95 The most volatile part of the Organized Money Market in India is – Call Money Market
96 Blue Chip means – Shares giving consistent high rate of return.
97 Gilt-edged market means – Market of Government securities
98 What is ‘NIKKEI’? Share Price Index in Tokyo Stock Exchange.
99 What does S & P 500 relate to? An index of stocks of large companies