BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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All coins (50p, Rs1, Rs5) are token coins
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All currency notes issued by RBI are promissory notes
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Credit money the value of of monetary purposes is less than its value for non monetary purposes
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Demand deposits are claims of creditors against banks
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Detailed explanation-1: -Answer: The Fed influences the availability and cost of money and credit as the national monetary policy authority to maintain a healthy economy. The Government has given the Fed two coequal monetary policy goals: first, maximum employment; and second, stable prices, which means low, stable inflation.
Detailed explanation-2: -Bank rate – The interest rate at which RBI lends long term funds to banks is referred to as the bank rate. However, presently RBI does not entirely control money supply via the bank rate. It uses Liquidity Adjustment Facility (LAF) – repo rate as one of the significant tools to establish control over money supply.
Detailed explanation-3: -Rewards credit cards. Secured credit cards. Low-interest credit cards. Cashback credit cards.
Detailed explanation-4: -What is meant by Cash credit? Cash credit is referred to as short-term funding or loan for a company so that it can meet its working capital requirements. Cash credit is a sort of loan that is offered to businesses by financial institutions like banks.