Economics: Utility and Services

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What function does RBI perform when it extends banking services to semiurban and rural areas?

Demand deposits

Credit creation

Time deposits

Promotional and developmental (correct)

Which type of deposit does RBI require all scheduled banks to maintain a certain minimum of cash reserves against?

Ancillary deposits

Special deposits

Time deposits

Demand deposits (correct)

In what capacity does RBI provide liquidity to banks experiencing financial difficulty?

Foreign exchange custodian

As a clearing house

Lender of last resort (correct)

Time deposits provider

What function of RBI involves ensuring the official rate of exchange of the rupee and stabilizing it?

Custodian of foreign exchange reserves Signup and view all the answers

What is possession utility?

Utility that arises when the ownership of goods is transferred from one person to another Signup and view all the answers

Which type of utility is created due to a change in the shape or structure of an existing material?

Form utility Signup and view all the answers

What is the basis of demand according to the text?

Intensity of want Signup and view all the answers

When does service utility arise?

When personal services are rendered by various professionals Signup and view all the answers

Which type of bank came into existence with the enactment of the Co-operative Credit Societies Act of 1904?

Co-operative Banks Signup and view all the answers

What is the main purpose of development financial institutions diversifying their operations?

To offer a wide range of new products and services Signup and view all the answers

What guidelines has the RBI issued for development financial institutions to become commercial banks?

To convert themselves into universal banks Signup and view all the answers

Which group usually borrows money from money lenders, but has seen restrictions on money lending by RBI due to exploitative tendencies?

Small and marginal farmers Signup and view all the answers

Economics: Utility and Services

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Questions and Answers

What function does RBI perform when it extends banking services to semiurban and rural areas?

Which type of deposit does RBI require all scheduled banks to maintain a certain minimum of cash reserves against?

In what capacity does RBI provide liquidity to banks experiencing financial difficulty?

What function of RBI involves ensuring the official rate of exchange of the rupee and stabilizing it?

What is possession utility?

Which type of utility is created due to a change in the shape or structure of an existing material?

What is the basis of demand according to the text?

When does service utility arise?

Which type of bank came into existence with the enactment of the Co-operative Credit Societies Act of 1904?

What is the main purpose of development financial institutions diversifying their operations?

What guidelines has the RBI issued for development financial institutions to become commercial banks?

Which group usually borrows money from money lenders, but has seen restrictions on money lending by RBI due to exploitative tendencies?

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