Q.1) Answer (c)
Q.2) Answer (c)
Q.3) Answer (b)
Q.4) Answer (b)
Q.5) Answer: (a)
Q.6) Answer (c)
Q.7) Answer (c)
Q.8) Answer (b)
Q.9) Answer (b)
Q.10) Answer (d)
Q.11) Answer (c)
Q.12) Answer (b)
Q.13) Answer (d)
Q.14) Answer (b)
Q.15) Answer (c)
Q.16) Answer (b)
Q.17) Answer (c)
Q.18) Answer (a)
World Bank is made up of two development institutions owned by 187 member countries:
International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). IBRD aims to reduce poverty in middle-income and creditworthy poorer countries, while IDA focuses on world’s poorest countries. Their work is complemented by that of the International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA) and International Centre for the Settlement of Investment Disputes (ICSID). There is a difference between the World Bank and the World Bank Group.
Q.19) Answer (d)
Variable Reserve Ratio (Cash Reserve Ratio) is aimed to control only volume of credit (quantitative method) not both volume and purpose of credit for which bank gives loans. (Qualitative method and selective control method are used for these purposes. It has a number of limitations.
Q.20) Answer (d)
Bank Rate is that rate of interest at which central bank of a country provides refinancing facilities to commercial banks. The bank rate, a benchmark rate at which RBI buys or re-discounts bills of exchange or other commercial papers eligible for purchase. Every bank needs refinancing as it is very difficult to match borrowings and flow of deposits.
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