Macro

Money & Banking

Easy

In a Commercial Bank, if the initial deposit of Rs 1000 create deposits of Rs 5000, then the cash reserve ratio will be_________.

10 %

15 %

20 %

5 %

✅ Correct Option: 3

Deposit multiplier $= \frac{Total\ deposits}{Initial\ deposit} = \frac{5000}{1000} = 5$ . Since multiplier $= \frac{1}{CRR}$ , we get $CRR = \frac{1}{5} = 0.20$ , i.e., 20%.

2025: 16 May Shift 1

What was the immediate impact of demonetization on the economy?

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(A) $M_1$	(I) $M_1$ + Net time deposits of commercial banks
(B) $M_3$	(II) Assets - Liabilities
(C) Net Worth	(III) 1/CRR
(D) Money Multiplier	(IV) Currency + Demand Deposit

Choose the correct answer from the options given below:

2022: 16 July Shift 2

Identify the correct statements from the following:

A. Currency is issued by the nation's Central Bank

B. To address the budget deficit, Central Bank sends money to the government

C. The economy's foreign exchange reserves are preserved by Central Bank

D. Central Bank does not control money supply and credit through monetary policy

E. Central Bank gives loans to the commercial Banks for short term

Choose the correct answer from the options given below :

2025: 26 May Shift 2

Which of the following is/are a qualitative tool of credit control adopted by the central bank of a country?

(A) Repurchase agreement.

(B) Moral suasion.

(D) Margin requirements.

Choose the correct answer from the options given below:

2025: 3 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Bank Rate	(I) Securities are pledged in order to repurchase.
(B) Open Market Operations	(II) Minimum rate at which funds are provided for long term.
(C) Repo Rate	(III) Buying and selling of bonds issued by the government in open market.
(D) Reverse Repo Rate	(IV) Central bank borrows funds from commercial banks.

Choose the correct answer from the options given below:

2025: 3 June Shift 2

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.

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

Choose the correct answer from the options given below:

In a Commercial Bank, if the initial deposit of Rs 1000 create deposits of Rs 5000, then the cash reserve ratio will be_________.

Solution

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