Macro

Money & Banking

Easy

Calculate the total deposits made by commercial banks when the primary deposit is Rs. 20 Crores and cash reserve ratio is 20%. Choose the correct option.

Rs. 40 Crores

Rs. 60 Crores

Rs. 80 Crores

Rs. 100 Crores

✅ Correct Option: 4

Total deposits = Primary deposit x Money multiplier.

Money multiplier = 1 / CRR = 1 / 0.20 = 5.

Total deposits = 20 x 5 = Rs. 100 Crores.

2022: 30 Aug Shift 2

In India coins are issued by _______.

2025: 27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Cash Reserve Ratio	(I) Reserves + Loans
(B) Net Worth	(II) Deposits
(C) Assets	(III) Percentage of deposits which a bank must keep as cash reserves with the central bank
(D) Liabilities	(IV) Assets – Liabilities

Choose the correct answer from the options given below:

2025: 2 June Shift 1

Why did Monetary Policy Committee keep its policy rate unchanged in its recent meet?

2022: 19 July Shift 2

Match List - I with List - II.

List - I (Banking)	List - II (Function)
(A) Commercial Bank	(I) Long term lending rate by RBI
(B) Reserve Bank of India	(II) Short term lending rate by RBI
(C) Bank Rate	(III) Credit creation
(D) Repo Rate	(IV) Lender of last resort

Choose the correct answer from the options given below :

2025: 29 May Shift 1

Which of the following are major functions of commercial banks?

2026: 19 May Shift 2

Arrange the following alternative measures of money supply in decreasing order of liquidity.

Where CU= Currency and DD = Demand Deposit

A. CU + DD

B. CU + DD + Net time deposits of commercial banks

C. CU + DD + Savings deposits with Post Office savings banks

D. CU +DD + Net time deposits of commercial banks +Total deposits with Post Office savings organizations (excluding NSC)

Choose the correct sequence from the options given below:

Solution