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Central Bank Economics - Central Bank

ICSE - STD 10 - Economics (ICSE - English Medium). 71 questions in this chapter.

Question types

Central Bank question types

71 questions across 6 question groups — pick any mix to generate a Economics paper with step-by-step answer keys.

71
Questions
6
Question groups
5
Question types
Sample Questions

Central Bank questions

One sample from each question group in this chapter. Select any group above to see the full set with answer keys.

Q 1MCQ1 Mark
When State Bank of India is under financial crisis and borrows money from Central Bank at a certain rate against approved securities, it will be called as :
  • A
    Interest rate
  • B
    Lending rate
  • C
    Reverse lending
  • ✓
    Bank rate

Answer: D.

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Q 2MCQ1 Mark
The apex bank which controls, regulates, and supervises the activities of commercial banks is the _________.
  • ✓
    Central bank
  • B
    Scheduled banks
  • C
    State Bank of India
  • D
    State Government

Answer: A.

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Q 3MCQ1 Mark
_________ is also called as the Lender of Last Resort.
  • A
    Commercial bank
  • ✓
    Central bank
  • C
    Canara bank
  • D
    Federal bank

Answer: B.

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Q 4MCQ1 Mark
The other name for demand deoposit is_________.
  • A
    Saving deposit
  • ✓
    Current deposit
  • C
    Posting deposit
  • D
    Time deposit

Answer: B.

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Q 5MCQ1 Mark
_________ deposits earn very low rate of interest on it.
  • A
    Demand
  • ✓
    Saving
  • C
    Recurring
  • D
    Cumulative

Answer: B.

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Q 6Assertion (A) & Reason (B) MCQ1 Mark
Assertion(A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.
Reason(R): The Central bank acts as a clearing house for the transfer and settlement of mutual claims of commercial banks.
  • A
    Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
  • ✓
    Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
  • C
    Assertion(A) is true but Reason(R) is false.
  • D
    Assertion(A) is false but Reason(R) is true.

Answer: B.

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Q 7Assertion (A) & Reason (B) MCQ1 Mark
Statement (1): The Bank Rate policy of the central bank is a traditional method of credit control.
Statement (2): The method used by the central bank to influence the total volume in the banking system is a quantitative method of credit control.
  • A
    Statement 1 is true, Statement 2 is false.
  • B
    Statement 2 is true, Statement 1 is false.
  • ✓
    Both the statements are true
  • D
    Both the statements are false

Answer: C.

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Q 8Assertion (A) & Reason (B) MCQ1 Mark
Statement (1): SLR is determined by the central bank.
Statement (2): CRR is fixed by the commercial banks.
  • A
    Both the statements are true
  • B
    Both the statements are false
  • ✓
    Statement 1 is true, Statement 2 is false.
  • D
    Statement 2 is true, Statement 1 is false.

Answer: C.

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Q 9Assertion (A) & Reason (B) MCQ1 Mark
Statement (1): An increase in CRR reduces the cash reserves of commercial banks.
Statement (2): Commercial banks are required to maintain CRR in the form of cash reserves.
  • ✓
    Both the statements are true
  • B
    Both the statements are false
  • C
    Statement 1 is true, Statement 2 is false.
  • D
    Statement 2 is true, Statement 1 is false.

Answer: A.

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Q 10Assertion (A) & Reason (B) MCQ1 Mark
Statement (1): Reserve Bank of India is the Central Bank of India.
Statement (2): Central Bank operates in public interest without profit motive.
  • ✓
    Both the statements are true
  • B
    Both the statements are false
  • C
    Statement 1 is true, Statement 2 is false.
  • D
    Statement 2 is true, Statement 1 is false.

Answer: A.

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Q 21[3 marks Question-Answer]3 Marks
What is meant by quantitative credit control? Describe two quantitative credit control measures of the Central Bank.###Briefly discuss any two quantitative measures adopted by the Reserve Bank of India to control money supply.
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Q 28[4 marks Question-Answer]4 Marks
How is a commercial bank different from a central bank?###Write three differentiate between commercial and central bank.###Give five points of difference between Commercial and Central Bank.
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