Macro

Money & Banking

Easy

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?

Maintaining Foreign Exchange Reserves

Lender of last resort

Maintaining cash reserves

Currency issue

✅ Correct Option: 2

A sudden mass withdrawal by depositors creates a liquidity crisis for commercial banks. In such situations, RBI provides emergency funds to commercial banks in its role as the lender of last resort.

Question 41

Which function of central Bank is refered to in the above paragraph.

Question 42

As a bankers' bank, what is the role played by RBI?

A. Custodian of cash reserves

B. Maintain Foreign Exchange Reserves

C. Currency Issue

D. Lender of last resort

E. Clearing house

Choose the correct answer from the options given below:

Question 43

How does RBI act as a supervisor to bank?

Question 45

Which of the following is correct statement?

If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?

Solution

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CUET Economics Past Year Questions (Topic-Wise)