PGT (Commerce previous year questions) (HTET) (Part – VI)Total Questions: 1001. The term 'moral suasion' refers to:A. The moral duty of a borrower to deal with only one bankB. The advice given by the Reserve Bank of India to banks/financial institutions in the matter of theirC. The banker's duty of secrecy as regards the affairs and accounts of his customersD. All of the aboveCorrect Answer: B. The advice given by the Reserve Bank of India to banks/financial institutions in the matter of their2. When the Reserve Bank of India (RBI) is the lender of last resort, what does it mean?A. RBI advances money to public whenever there is any emergencyB. Commercial banks give fund to the RBIC. RBI advances necessary credit against eligible securitiesD. All of the aboveCorrect Answer: C. RBI advances necessary credit against eligible securities3. In periods of boom, which leads to economic instability, the Reserve Bank of India (RBI) resorts to?A. Hike in the Bank Rate as a measure of open market operationsB. Buying of approved securities in the market as measure of open market operationsC. Sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operationsD. All of the aboveCorrect Answer: B. Buying of approved securities in the market as measure of open market operations4. Which of the following instruments of credit control adopted by the Reserve Bank of India (RBI) does not fall within 'general' or 'quantitative' methods of credit control?A. Bank rateB. Open market operationsC. Stipulation of certain minimum margin in respect of advance against specified commoditiesD. Variable reserve requirementsCorrect Answer: C. Stipulation of certain minimum margin in respect of advance against specified commodities5. The Reserve Bank of India was originally constituted as a share holder's Bank with a share capital ofA. ₹ 50 lakhB. ₹ 100 lakhC. ₹ 10 croresD. ₹ 5 croresCorrect Answer: D. ₹ 5 crores6. Credit rationing is a________method of credit control.A. quantitative credit controlB. qualitative credit controlC. direct credit controlD. continuous credit controlCorrect Answer: B. qualitative credit control7. The primary function of Central Bank is to_______of the country.A. control the systemB. regulate the monetary systemC. plan the monetary systemD. check and balance the money flowCorrect Answer: B. regulate the monetary system8. Open market operation is another important_______weapon of credit control?A. qualitativeB. normalC. quantitativeD. self killCorrect Answer: C. quantitative9. ______ is a method of credit control adopted by the modern central banks?A. Consumer creditB. Margin requirementsC. Variable reserve ratioD. Rationing of creditCorrect Answer: C. Variable reserve ratio10. What is CRR?A. Cash Reserve RatioB. Current Ratio RateC. Review ReportD. Credit Rating RecordCorrect Answer: A. Cash Reserve RatioSubmit Quiz12345678910Next »
