Macro

Money & Banking

Medium

When in the Economic, Bank rate decrease, Arrange the following statements relating to change in bank rate in the sequencing order :

(A) Loans taken by commercial bank become cheaper

(B) Increases money supply

(C) Bank rate is decreased by RBI

(D) Reserves held by commercial banks increases

Choose the correct answer from the options given below :

(A), (C), (B), (D)

(C), (A), (D), (B)

(B), (C), (D), (A)

(C), (D), (A), (B)

✅ Correct Option: 2

The logical sequence is: first (C) RBI decreases the bank rate, then (A) loans for commercial banks become cheaper, then (D) reserves held by commercial banks increase, and finally (B) money supply in the economy increases. The correct order is C, A, D, B.

2026: 15 May Shift 1

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. The RBI gives long term loans to the commercial banks	I. Reverse repurchase agreement
B. The RBI buys the securities through an agreement having specification about date and price of resale	II. Open market operations
C. The RBI sell the securities through an agreement having specification about date and price at which it will be repurchased	III. Repurchase agreement
D. Buying and selling of bonds issued by the government in the open market	IV. Bank Rate

Choose the correct answer from the options given below:

2025: 13 May Shift 1

Among the following, which are the functions of money?

(A) Medium of exchange.

(B) Unit of account.

(D) Store of value

Choose the correct answer from the options given below:

2025: 13 May Shift 2

How much total credit creation can bank creates with Cash Reserve Rato of 20% when bank's reserves are Rs. 1000.

2025: 22 May Shift 1

Among the following what are the functions of money?

(A). Medium of exchange.

(B). Unit of account.

(C). Unit of purchasing power.

(D). Store of value.

Choose the correct answer from the options given below:

2023: 1 June Shift 1

Money in the form of currency (Notes+Coins) held by the public, Net Demand deposits held by commercial Banks and the saving deposits with Post Office saving banks are known as :

2022: 15 July Shift 2

The currency issued by the Reserve Bank of India is called.

A. High powered money

B. Reserve money

C. Bank money

D. Monetary base

E. Fiscal base

Choose the correct answer from the options given below:

Solution

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