Frequently asked in AD(Viva)

1. What are the functions of Bangladesh bank?
----Formulation and implementation of monetary and credit policy.
-----Regulations and supervisions of bank and non bank financial institutions
----Management of country's international reserve.
-----Issuence of currency,Notes.
2. How Bangladesh bank formulate and implement monetary policy?
--Mainly three ways
----By Changing bank rate.
----By Changing variable reserve ratio.
----Open market operation.
3. What is bank rate?
--- The interest rate at which the central bank lends money to the commercial bank.
4. The rate of Bank rate at present?
---5%.
5. Open Market operation, what does it refer?
----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?
----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?
-----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?
----6.5% for both Traditional and Islami bank