Asked Questions From NCERT:

What is the rate at which commercial banks keep their reserves with central banks?

a) Repo rate

b) Bank rate

c) Reverse repo rate

d) LRR

What is the rate at which central bank gives loan to commercial bank with collateral?

a) Repo rate

b) Bank rate

c) Reverse repo rate

d) LRR

 What is the rate at which central bank gives loan to commercial bank without collateral?

a) Repo rate

b) Bank rate

c) Reverse repo rate

d) LRR

The central bank acts as the last help to commercial banks or public. Which function is highlighted here?

a) Custodian of cash reserve

b) Custodian of foreign exchange

c) Banker's bank

d) Lender of last resort

Commercial banks are required to keep an amount with central bank called CRR. Which function is highlighted here?

a) Custodian of cash reserve

b) Custodian of foreign exchange

c) Bank of issue

d) Clearing house function

 57. Central bank maintains the reserve of foreign exchange so that when price rises, the central bank can give the reserve to public. Which function is highlighted here?

a) Custodian of cash reserve

b) Custodian of foreign exchange

c) Clearing house function

d) Bank of issue

Being the apex bank, the central bank maintains the same relation with the commercial banks as the latter maintains with the public. Which function is being highlighted here?

a) Banker to government

b) Banks of issue

c) Banker's bank

d) Supervision

By advising the government from time to time, central bank acts as a

a) Banker

b) Agent

c) Financial advisor

d) None of the above

By managing the responsibility of public debt, central bank acts as

a) Banker

b) Agent

c) Financial advisor

d) None of the above

By carrying out all the banking activities, central bank acts as

a) Banker

b) Agent

c) Financial advisor

d) None of the above