6. RBI provides Ways and Means Advances (WMA) to ………….
(a) Central Government
(b) State Government
(c) Both
(d) None
7. Which of the following is not a function / power of Reserve Bank of India ?
(a) To assume the responsibility of meeting directly or indirectly all reasonable demands for accommodation
(b) To hold cash reserves of the commercial banks and make available financial accommodation to them
(c) To assume responsibility of all banking operations of the government
(d) To assume the responsibility of statistical analysis of data related to macro economy of India
8. RBI takes certain steps to curb the menace of Inflation. In this context, which among the following will not help RBI in controlling the inflation in the country ?
(a) An increase in the Bank Rate
(b) An increase in the Reserve Ratio Requirements
(c) A purchase of securities in the open market
(d) Increasing the Repo Rate
9. What will be the impact on the cash reserves of commercial banks if RBI conducts a sale of securities ?
(a) Increase
(b) Decrease
(c) Remain constant
(d) Increase or decrease
10. If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to :
(a) increase it
(b) decrease it
(c) no impact
(d) None of these
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