The Reserve Bank of India Keeps on changing correcting various indicators/rates/ratios applicable to the banking industry. What at present is the Statutory Liquidity Ratio(SLR)?

How does shadow banking differ from commercial banking?
1. While commercial banks are tightly regulated, shadow banking is not well regulated.
2. Shadow banking cannot create money.
3. While liabilities of commercial banks are insured, shadow banking liabilities are not insured.
4. While commercial banks access to central bank liquidity in the times of distress, shadow banking does not have such resource.
Select the correct answer:

A

1 only

B

1 and 2 only

C

2, 3 and 4 only

D

1, 2, 3, and 4

Credit creation capacity of a bank depends on the cash reserve ratio and statutory liquidity ratio.
If the initial deposit (O) is Rs. 1,000 and the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) is 5% and 20%, then the credit creation capacity will be as follows

A

Rs. 3,000

B

Rs. 5,000

C

Rs. 6,000

D

Rs. 2,000

Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements employed by Reserve Bank as measures by Reserve of credit control are classified as

A

Quantitative methods

B

Qualitative methods

C

Both of the above

D

None of these

The central banking functions in India are performed by the

I=Central Bank of India
II=Reserve Bank of India
III=State Bank of India
IV=Punjab National Bank

A

I, II

B

II

C

I

D

II, III

E

IV

Defining green banking is relatively easy. It means promoting environment -friendly practices and reducing your carbon footprint from your banking activities. This comes in many forms : using online banking instead of branch banking; paying bills online, opening up CDs (certificates of deposit) and money market accounts at online banks instead of large multi-branch banks. A green bank takes the biggest steps to support local green initiatives. Any combination of the above personal banking practices can help the environment. In this respect, online banks and smaller community banks have better track records than larger banks .However, these larger banks may be induced to go green . According to the passage, larger, multi -branch banks .

A

can never become green banks .

B

can become green banks if they reduce the number of branches and eliminate the use of paper .

C

can become green banks if they can greatly reduce or eliminate carbon footprint form their banking activities.

D

can become green banks if they support local green initiatives

Identity the correct combination of statements with regard to banking in India:
1. The Presidency banks had acted as quasi - central banks for many decades in India.
2. The Bank of Hindustan was liquidated during 1829-32.
3. General Bank of India was an unsuccessful bank and was dissolved in 1791.
4. Bank of Calcutta was renamed as Bank of Bengal in 1921.

A

1, 2 and 3

B

2, 3 and 4

C

1, 2 and 4

D

1, 2, 3 and 4

Which of the statement on Islamic banking is incorrect? (A) Islamic banking is only for Muslims.(B) Islamic banking activity do not allow paying and receiving of interest. (C) Islamic banking promotes the principle of profit sharing between banking institution and depositor.

A

Only A

B

Only B

C

Only C

D

Both B and C

Identify the correct combination of statements with regard to banking in India.
1. For many years the presidency banks had acted as quasi-central banks.
2. The Bank of Hindustan was liquidated during 1829-32.
3. General Bank of India was an unsuccessful bank and was dissolved in 1791.
4. Bank of Calcutta was renamed as Bank of Bengal in 1921.

A

1, 2 and 3

B

2, 3 and 4

C

1, 2 and 4

D

1, 2, 3 and 4

There are 50 boxes and 50 persons. Person 1 keeps 1 marble in every box, person 2 keeps 2 marbles in every 2nd box, person 3 keeps 3 marbles in every third box. The process goes on till person 50 keeps 50 marbles in the 50th box. Find the total number of marbles kept in the 50th box.

A

43

B

78

C

6

D

93

Consider the following statements.
Assertion (A): A well-developed money market is the basis for an effective monetary policy. It is in the money market that the Central Bank comes into contact with the financial sectors of the economy as a whole and it is through the liquidity in the market that influences the cost and availability of credit.
Reasoning (R): A well-organized money market is an essential condition for the successful operation of the Central Banking policies, and for holding the conditions of liquidity within the bounds of what the monetary authorities consider desirable.

A

(A) is true but (R) is false

B

(R) is true but (A) is false

C

(A) is true and (R) offers correct explanation to (A)

D

Both (A) and (R) are false