341UPPSC2008EconomyEnglish
The Bank rate is the rate at which
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Correct option: C — the RBI gives credit to the commercial banks
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Economy MCQ practice free online · page 35
Questions from RRB, NTPC, Group D and JE past papers. Tap an option to check it instantly — every question shows the correct answer, and most carry the explanation the paper gave.
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- 342TNPSC2017EconomyEnglish
Consider the following statements. 1. Bank rate is the rate of interest which RBI charges its clients on their short-term borrowing. 2. Repo rate is the rate of interest which RBI charges its clients on their long-term borrowing. Which of the statement(s) given above is/are correct?
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Correct option: D — Neither 1 nor 2
- 343HPSC2017EconomyEnglish
The interest rate at which the Reserve Bank of India lends to Commercial Banks in the shortterm to maintain liquidity is known as
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Correct option: B — Repo rate
- 344HPSC2014EconomyEnglish
In order to control credit, Reserve Bank of India should
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Correct option: C — increase CRR and increase Bank rate
- 345UPPSC2010EconomyEnglish
In India ‘Money and Credit’ is controlled by the
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Correct option: C — Reserve Bank of India
- 346UPSC2010EconomyEnglish
When the Reserve Bank of India announces an increase of the Cash Reserve Ratio (CRR), what does it mean?
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Correct option: A — The commercial banks will have less money to lend
- 347UPSC2010EconomyEnglish
The lowering of Bank Rate by the Reserve Bank of India leads to
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Correct option: A — more liquidity in the market
- 348MPPSC2008EconomyEnglish
A proportion of total deposits and reserves of the commercial banks deposited with the Reserve Bank of India is called
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Correct option: D — Cash Reserve Ratio
- 349UPPSC2010EconomyEnglish
An increase in CRR by the Reserve Bank of India results in
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Correct option: B — reduction in liquidity in the economy
- 350PPSC2017EconomyEnglish
Which one of the following statement is correct regarding increase in the cash reserve ratio in India?
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Correct option: B — It reduces credit creation
Economy practice — common questions
Page 35 of this set has 10 questions on it.
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Where do these Economy MCQs come from?
They are taken from official past papers of Indian government recruitment exams such as RRB NTPC, RRB Group D and RRB JE, and each question keeps a reference to the exam it appeared in.
Are the questions available in Hindi?
Yes. Many papers are set in both languages, so a large share of these questions are available in Hindi. Use the language filter at the top of the page.
Do the questions show answers and explanations?
Every question shows the correct option. Where the source paper included a worked solution, the explanation is shown under "Show answer".