RRB NTPC Economics and Finance 2

Question 1

The repo rate is defined as the rate at which the Reserve Bank of India lends money to which entities?

Accepted Answer

Commercial banks in India

Answer

The repo rate is the rate at which the RBI lends short-term funds to commercial banks against government securities, used as a key tool to control inflation and liquidity.

Question 2

SEBI (Securities and Exchange Board of India) primarily regulates which sector?

Accepted Answer

Securities and capital markets

Answer

SEBI was established in 1992 to regulate and develop the securities markets in India, protecting investors and ensuring fair market practices.

Question 3

What does NABARD stand for?

Accepted Answer

National Bank for Agriculture and Rural Development

Answer

NABARD stands for National Bank for Agriculture and Rural Development, established in 1982 to provide credit and development support to agriculture and rural industries.

Question 4

What is Cash Reserve Ratio (CRR)?

Accepted Answer

The minimum percentage of deposits banks must keep as reserves with the RBI

Answer

CRR is the minimum percentage of a bank's net demand and time liabilities (NDTL) that must be maintained as cash reserves with the RBI, used to control liquidity.

Question 5

What does FDI stand for in the context of international economics?

Accepted Answer

Foreign Direct Investment

Answer

FDI stands for Foreign Direct Investment, which refers to investment made by a company or individual in one country into business interests in another country.

RRB NTPC Practice Test

RRB NTPC Practice Test

RRB NTPC Economics and Finance 2