Frequently asked in AD(Viva)

1. What are the functions of Bangladesh bank?
Ans:
A.Formulation and implementation of monetary and credit policy.
B.Regulations and supervisions of bank and non bank financial institutions
C.Management of country's international reserve.
D.Issuence of currency,Notes.
2. How Bangladesh bank formulate and implement monetary policy?
Mainly three ways
1.By Changing bank rate.
2.By Changing variable reserve ratio.
3.Open market operation.
3. What is bank rate?
Ans:The interest rate at which the central bank lends money to the commercial bank.
4. The rate of Bank rate at present?
Ans:5%.
5. Open Market operation, what does it refer?
Ans:It refers to purchase and sales of securities in the open market by the central bank.
6. Chaning variable reserve ratio,what does it indicate?
Ans:It refers to the minimum percentage of a bank's total deposits which is required to be kept with the central bank.All banks have to keep with the central bank a certain percentage of their deposits in the form of CRR.
7. What is CRR?
Ans:Cash Reserve Ratio(CRR) is the minimum percentage of bank's total deposits that must be kept in central bank
8. Rate of CRR at present?
Ans:6.5% for both Traditional and Islami bank