Read quiz on CRR, SLR, MSF, LAF for RBI Grade B

Dear aspirants,
We are presenting you the quiz on CRR, SLR, MSF, LAF for RBI Grade B for Finance and Management Section of the exam. Before going through the quiz we will recommend you to read the topic of Reserve Bank of India. This quiz on CRR, SLR, MSF, LAF for RBI Grade B exam will cover important sections, subsections, ceilings defined by RBI related to CRR, SLR, MSF, LAF.
quiz on CRR, SLR, MSF, LAF for RBI Grade B

  1. What is maximum and minimum ceiling of CRR imposed by RBI on banks?
    1. Minimum: 3%, Maximum: 20%
    2. Minimum: 4%, Maximum: 20%
    3. Minimum: 4%, Maximum: 15%
    4. Since 2006 there is no minimum or maximum level of CRR
  2. Which among the following is/are included in Net demand and time liabilities of bank (NDTL)
    a) Current account, saving account deposits
    b) Fixed deposits cash certificates
    c) Interest accrued on deposits, unpaid dividend
    d) Paid up capital, reserves, any credit balance in the Profit & Loss Account of the bank
    Select the correct answer from following options:

    1. Only a and b
    2. a, b and c
    3. b, c and d
    4. All are correct
  3. What is the maximum ceiling of SLR imposed by RBI on banks?
    1. 40% of total demand and time liabilities
    2. 35% of total demand and time liabilities
    3. 30% of total demand and time liabilities
    4. 25% of total demand and time liabilities
  4. Which among the following assets is/are eligible to be included in SLR?
    a) Paid up capital of banks.
    b) Cash
    c) Gold
    d) Eligible government securities
    Select the correct answer from following options:

    1. Only a and c
    2. Only c and d
    3. b, c and d
    4. All are correct
  5. Which among the following institution have to maintain SLR?
    a) Scheduled Commercial Banks
    b) Primary Agricultural Co-operative Societies at village level
    c) Urban Co-operative Banks
    d) State and Central Co-operative Banks
    Select the correct answer from following options:

    1. Only a, b and c
    2. Only a, c and d
    3. Only a and d
    4. All are correct
  6. Consider the following statements regarding Marginal Standing Facility (MSF)?
    a) This is liquidity support arrangement for banks who do not have eligible securities above SLR limit
    b) The banks can borrow overnight funds (for one day only) from RBI
    c) The banks can avail up to one per cent of their respective Net Demand and Time Liabilities (NDTL) outstanding at the end of the second preceding fortnight
    d) The interest rate on MSF is Repo Rate + 0.25%
    Select the correct answer from following options:

    1. Only a and c
    2. a, b and c
    3. a, c and d
    4. All are correct
  7. What penal interest is imposed by Reserve Bank of India on banking company if it do not maintain required amount of SLR?
    1. As per discretion of RBI
    2. Bank Rate + 3%
    3. Bank Rate + 4%
    4. Bank Rate + 5%
  8. What penal interest is imposed by Reserve Bank of India on banking company if it do not maintain required amount of SLR for successive days?
    1. As per discretion of RBI
    2. Bank Rate + 3%
    3. Bank Rate + 4%
    4. Bank Rate + 5%
  9. Consider the following statements regarding Liquidity Adjustment Facility (LAF)?
    a) It is a monetary tool to control short-term money supply in economy.
    b) It helps banks to manage their daily liquidity by pledging government securities above the SLR requirement to RBI.
    c) It consists of Repo and Reverse Repo transactions
    d) Repo rate is Reverse repo rate plus 0.25%
    Select the correct answer from following options:

    1. Only a and d
    2. a, b and c
    3. b, c and d
    4. All are correct
  10. Which among the following is not quantitative tool of monetary policy?
    1. Moral Suasion
    2. Liquidity Adjustment Facility
    3. Marginal Standing Facility
    4. Reserve Ratios

Answers

  1. 4
  2. 2
  3. 1
  4. 3
  5. 2
  6. 4
  7. 2
  8. 4
  9. 4
  10. 1

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