Option (5) is correct. Its main objective is to infuse or reduce liquidity in the market which indirectly regulates inflation, borrowing power of banks and prices of essential commodities.

Option 2 is correct.

Option 1 is correct.

Option 5 is correct.

 Whenever RBl does some open market operation transactions, its main motive is to regulate liquidity in the economy

Option 1 is correct.

Correct Answer: SEBI.  In 1996, SEBI, the regulator of mutual funds in India, formulated the Mutual Fund Regulation which is a comprehensive regulatory framework. 

Option (5) is correct. Pillar II is for supervisory review. Pillar II provides a framework for dealing with systemic risk, pension risk, concentration risk, strategic risk, reputational risk, liquidity risk and legal risk, which the accord combines under the title of residual risk. Banks can review their risk management system.

Correct Answer: It advises banks to lend against certain commodities. Selective credit control is used to restrict bank finance against sensitive commodities (food grains, sugar, gur, cotton textiles, raw cotton, kapas). 

Option (5) is correct. Prime lending rate is the interest rate used by a bank which is decided by the concernend bank.

Correct option is (4). NABARD was set up with an initial capital of 100 crore. Consequent to the revision in the composition of share capital between Government of India and RBI, the paid up capital as on 31 March 2015, stood at 5000 crore with Government of India holding 4,980 crore (99.60%) and Reserve Bank of India 20.00 crore (0.40%).

Correct Answer: increases. Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Thus, the money supply will decrease with the bank which will mean that the rate of interest on loans offered by the bank will increase. 

 Correct Ans. 1. In 2003, foreign banks were permitted for the first time to operate currency chests. Standard Chartered Bank — the largest and oldest foreign bank in the country was the first foreign bank to handle currency chests in India.

Correct Answer: Reserve Bank of India. Banknotes in India are currently being issued in the denomination of ₹ 10, ₹ 20, ₹ 50, ₹ 100 ₹ 500, and ₹ 1000. These notes are called banknotes as they are issued by the Reserve Bank of India (Reserve Bank).