6. Which of the following statements is true regarding the Reserve Bank of India’s role as a banker to other banks?
a) It accepts deposits from the general public
b) It grants loans to individuals and businesses
c) It provides liquidity support to banks
d) It issues credit cards and debit cards
7. The Cash Reserve Ratio (CRR) is the percentage of a bank’s total deposits that it must keep with the RBI. What is the main objective of CRR?
a) To maintain the solvency of commercial banks
b) To control inflation in the economy
c) To ensure the availability of sufficient funds to meet the depositors’ demands
d) To promote savings and investment habits among the public
8. Which of the following is NOT a function of the RBI as a banker to other banks?
a) Providing credit facilities to commercial banks
b) Acting as a lender of the last resort
c) Supervising and regulating the banking system
d) Issuing currency notes and coins
9. When the RBI increases the Statutory Liquidity Ratio (SLR), what impact does it have on banks’ lending capacity?
a) Banks are able to lend more to the public
b) Banks’ lending capacity remains the same
c) Banks’ lending capacity decreases
d) It depends on other factors
10. Which of the following committees recommended the introduction of the Liquidity Adjustment Facility (LAF) by the RBI?
a) Bimal Jalan Committee
b) Y.H. Malegam Committee
c) N. S. Vishwanathan Committee
d) Raghuram Rajan Committee
