(A) fiscal policy
(B) monetary policy
(C) credit management
(D) sustainable development goals
Category: Banking Mcqs
Which of the following is NOT among functions of a central bank?
(A) Issue money
(B) Lender of last resort
(C) Regulate interest and exchange rate
(D) All above are functions of a central bank
A repurchase agreement known as “Repo” is a form of short-term _____ by the central bank.
(A) borrowing
(B) lending
(C) saving
(D) adjustment
Which of the following statement is true about Repo and Reverse Repo interest rate?
(A) Repo is higher than Reverse Repo
(B) Reverse Repo is higher than Repo
(C) Both are equal to policy rate
(D) Both interest rates are equal
Replacement of an existing loan with another loan is known as
(A) borrowing
(B) reborrowing
(C) financing
(D) refinancing
The risk-free interest rate is the rate of return of an investment which has _____ risk.
(A) zero
(B) minimum
(C) adjustable
(D) diversifiable
What interest rate is considered as a benchmark for which global banks lend to one another for short-term loans?
(A) treasury yield
(B) coupon yield
(C) LIBOR
(D) KIBOR
Monetary policy of a country is managed by
(A) central bank
(B) finance ministry
(C) commercial banks
(D) board of revenue
A central Bank differs from a commercial bank in that:
I. It is the bank of the state
II. It has largest reserves
III. It oversees commercial banking system
(A) I only
(B) I and II only
(C) I and III only
(D) I, II, and III
The interest rate at which commercial banks can borrow money from the central bank is known as
(A) yield
(B) repo
(C) discount rate
(D) policy rate