Instead of outright sale of securities the central bank may sell the securities through an agreement which has a specification about the date and price at which it will be repurchased. The rate at which such agreements take place is known as-----------------.

Given, Staturary Liquid Ratio=20%

A comercial bank deposits=Rs.1200

How much money the bank can give as a loan ?

The Central Bank is a very important institution in the modern economy. What are the main characteristics of the Reserve Bank of India?

(A) India got its central bank in 1935.

(B) It is the custodian of the foreign exchange reserves of the economy.

(C) It controls the money supply of the country through various methods, like bank rate, open market operations etc.

(D) It also acts as a bank for the banking system.

Choose the correct answer from the options given below:

Consider the statements about Open Market Operations (OMO):

(A) OMO is a tool by which the Reserve Bank of India(RBI) controls money supply.

(B) OMO is an example of Qualitative Control.

(C) Selling bonds through RBI reduces the money supply.

(D) Outright OMOs are permanent in nature.

Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. Only (A), (B), (C)
3. Only (A), (C), (D)
4. Only (A), (D)

If the reserve ratio is 10% and the initial deposit with the commercial banks are Rs. 450 cr, the total money creation by the banking system will be :

The interest rate at which the money is lent by the central bank with agreement of purchase that has specifications about date and price of resale of this security. This rate is called___

In a time of deflation, the Central Bank should: