Macro

Money & Banking

Medium

Which of the following statements is correct with reference to the Cash Reserve Ratio (CRR)?

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank

B. To ensure that no bank is 'over lending'

C. This is a legal requirement and is binding on the banks

D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

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

(B), (C) and (D) only

(A), (B) and (D) only

(A), (B) and (C) only

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

(B), (C) and (D) only

✅ Correct Option: 2

Option 1 -> Includes statement (D) which is incorrect as CRR and SLR are different concepts.

Option 2 -> Correctly includes statements (A), (B), and (C) which are all accurate about CRR, and excludes (D).

Option 3 -> Includes statement (D) which incorrectly states CRR and SLR are the same.

Option 4 -> Excludes statement (A) which is a fundamental correct definition of CRR, and includes incorrect statement (D).

Hence, Option 2: (A), (B) and (C) only -> Statement (A) correctly defines CRR as a percentage of deposits banks must keep with RBI. Statement (B) correctly identifies the purpose of preventing over-lending. Statement (C) correctly notes it's a legal requirement under RBI Act. Statement (D) is incorrect because CRR (cash reserves with RBI) and SLR (liquid assets like government securities kept by banks themselves) are distinct monetary policy tools with different purposes and mechanisms. -> correct

2026: 19 May Shift 2

The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Identify the INCORRECT statement from the following in this context.

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:

2026: 13 May Shift 2

When the central bank buys the security, this agreement of purchase also has specifications about the date and price of resale of this security. The rate at which these agreements are carried out is known as ?

2025: 14 May Shift 1

Which system requires double coincidence of wants?

2026: 19 May Shift 2

Consider the following statements regarding the demand for money and choose the correct statements.

A. Speculative demand for money is inversely related to the rate of interest.

B. Demand for money balance is often referred to as transaction preference.

C. People desire to hold money broadly for speculative and transaction motive.

D. Transaction demand for money is inversely related to the real income of an economy.

Choose the correct answer from the options given below:

2022: 10 Aug Shift 2

Which among the following is not a part of Qualitative measure of Monetary Policy of RBI ?

Solution

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