- → Economics (CBCS)
- → Financial Institutions and Markets
- → Central Banks - RBI
- → Set 1
Chapter:
in Financial Institutions and Markets
Chapters
- Central Banks - RBI
- Money and Commercial Banking
- Non-Banking Financial Institutions
- Foreign Exchange Markets
Take a Test Download as PDF
Chapter: Central Banks - RBI
1. | The Reserve Bank of India was established on |
A. | April 1, 1935 |
B. | July 12, 1982 |
C. | May 26, 2006 |
D. | September 30, 2005 |
Answer» A. April 1, 1935 |
discuss
2. | On which commission’s recommendations; Reserve Bank of India was established? |
A. | Chamberlain Commission |
B. | Hilton Young Commission |
C. | Keynes Commission |
D. | None of the above |
Answer» B. Hilton Young Commission |
discuss
3. | Which among the following is incorrect? |
A. | RBI is the Bank of Issue |
B. | RBI acts as Banker to the Government |
C. | RBI is Banker's Bank |
D. | RBI does not regulate the flow of credit |
Answer» D. RBI does not regulate the flow of credit |
discuss
4. | Which of the following is true about the restrictions on RBI? |
A. | only (i),(ii),(iii), and (iv |
B. | only (v |
C. | all the above |
D. | none of the above |
Answer» C. all the above |
discuss
5. | Which of the following is not the work of RBI? |
A. | Bank of the banks |
B. | Credit controller |
C. | Custodian of foreign currency |
D. | Allocating funds directly to the farmers for agricultural development |
Answer» D. Allocating funds directly to the farmers for agricultural development |
discuss
6. | Which of the following words is not used in Monetary Policy? |
A. | Cash reserve ratio |
B. | Repo Rate |
C. | Bank rate |
D. | Blue chip |
Answer» D. Blue chip |
discuss
7. | For issuing / printing currency notes, the RBI has adopted a system – |
A. | Minimum Reserve System |
B. | Fixed fiduciary system. |
C. | Maximum limit system |
D. | Proportional reserve system. |
Answer» A. Minimum Reserve System |
discuss
8. | Central Bank is a |
A. | Commercial Bank |
B. | Exchange bank |
C. | Apex bank. |
D. | Scheduled bank. |
Answer» C. Apex bank. |
9. | Central Bank is an institution which is |
A. | Privately owned |
B. | State owned |
C. | Internationally owned |
D. | Jointly owned by state and private. |
Answer» B. State owned |
discuss
10. | The methods of credit control used by RBI includes |
A. | (i), (ii) and (iii |
B. | (ii), (iii) and (iv |
C. | (i), (iii) and (iv |
D. | (i), (ii), (iii) and (iv |
Answer» D. (i), (ii), (iii) and (iv |
discuss
11. | The full form of EMI used in the banking sector is |
A. | Easy Monthly Installment |
B. | Equal Monthly Investment |
C. | Equated Monthly Installment |
D. | Equated Mortgage Investment. |
Answer» C. Equated Monthly Installment |
discuss
12. | Bank rate is decided by |
A. | Reserve Bank of India |
B. | Govt. of India |
C. | State Bank of India |
D. | Securities and Exchange Board of India (SEBI |
Answer» A. Reserve Bank of India |
discuss
13. | The reserves held by the Commercial Banks over and above the statutory minimum with theRBI are called |
A. | Cash reserves |
B. | Deposit reserves |
C. | Excess reserves |
D. | Momentary reserves. |
Answer» C. Excess reserves |
discuss
14. | Banking in India is controlled by |
A. | Union Finance Commission |
B. | Union Ministry of Finance |
C. | Union Ministry of Commerce |
D. | Reserve Bank of India |
Answer» D. Reserve Bank of India |
discuss
15. | Which of the following is not the function of Reserve Bank of India? |
A. | Acting as banker to the Government. |
B. | Keeping foreign Exchange Reserve. |
C. | Regulating credit in the country. |
D. | Issuing of one rupee notes and coins. |
Answer» D. Issuing of one rupee notes and coins. |
discuss
16. | The objectives of monetary policy is / are |
A. | Price Stability |
B. | Economic growth |
C. | Increase import of luxury goods |
D. | Both (a) and (b |
Answer» D. Both (a) and (b |
discuss
17. | Bank rate is defined as |
A. | Rate of interest charged by commercial banks from borrowers |
B. | Rate of interest allowed by commercial banks on demand deposits. |
C. | Rate of interest allowed by commercial banks on time deposits. |
D. | Rate which RBI purchases or rediscount bills of exchange of commercial banks. |
Answer» D. Rate which RBI purchases or rediscount bills of exchange of commercial banks. |
discuss
18. | The Reserve Bank of India was nationalized in |
A. | 1st January 1949. |
B. | 1st April, 1935 |
C. | 1st May, 1947 |
D. | 1st June, 1949 |
Answer» A. 1st January 1949. |
discuss
19. | The Governor of RBI is appointed by |
A. | Board of Directors |
B. | Central Government |
C. | Finance Minister |
D. | None of the above |
Answer» B. Central Government |
discuss
20. | The chairman of the Central Board of RBI is |
A. | Governor |
B. | Deputy Governor. |
C. | Finance Minister, Govt. of India |
D. | Prime Minister |
Answer» A. Governor |
discuss
21. | Which of the following is true about the functions performed by RBI - |
A. | Both (i) and (ii |
B. | Both (iii) and (iv |
C. | All the Above |
D. | None of the above |
Answer» C. All the Above |
discuss
22. | Which of the following is true about the objectives of RBI trying to achieve- |
A. | Both (i) and (ii |
B. | Both (iii) and (iv |
C. | All the Above |
D. | None of the above |
Answer» C. All the Above |
discuss
23. | The custodian of India’s foreign exchange reserve is |
A. | State Bank of India (SBI |
B. | Reserve Bank of India (RBI |
C. | International Monetary Fund (IMF |
D. | World Bank |
Answer» B. Reserve Bank of India (RBI |
discuss
24. | Which of the following is true about the functions of RBI- |
A. | Export finance |
B. | Agriculture finance |
C. | Collecting data and publication |
D. | Exchange management and control |
Answer» C. Collecting data and publication |
discuss
25. | Which of the following is true that RBI as a banker to the government |
A. | Both (i) and (ii |
B. | Both (iii) and (iv |
C. | All the Above |
D. | None of the above |
Answer» C. All the Above |
discuss
26. | Which of the following coins is not issued by the RBI ? |
A. | Re. 1 |
B. | Rs. 2 |
C. | Rs. 5 |
D. | Rs. 10 |
Answer» A. Re. 1 |
discuss
27. | RBI has withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise in which year ? |
A. | 2010 |
B. | 2011 |
C. | 2012 |
D. | 2013 |
Answer» B. 2011 |
discuss
28. | Which of the following is/ are the Quantitative Instrument of RBI ? |
A. | CRR |
B. | SLR |
C. | All of the above |
D. | None of above |
Answer» C. All of the above |
discuss
29. | Which among the following would not help RBI to control the inflation in the country ? |
A. | Increase in Reserve Ratio Requirements |
B. | Increase in Bank Rate |
C. | Purchase of securities in open market |
D. | Increase in Repo Rate |
Answer» D. Increase in Repo Rate |
discuss
30. | What would be the impact on cash reserves of the commercial banks if RBI conducts the sale of securities? |
A. | Decrease |
B. | Increase |
C. | Either increase or decrease |
D. | Remains contant |
Answer» A. Decrease |
discuss
31. | Which of the following works as the agent of RBI while it has no own offices ? |
A. | IMF |
B. | SBI |
C. | GOI |
D. | Ministry of Finance |
Answer» B. SBI |
discuss
32. | Which of the followong Governors of RBI also served as the Finance Minister of India ? |
A. | Pranav Mukherjee |
B. | Amitabha Ghosh |
C. | Sir Benegal Rama Rao |
D. | Dr. Manmohan Singh |
Answer» D. Dr. Manmohan Singh |
discuss
33. | Which of the following statements is/are not true ? |
A. | RBI is the Bank of Issue. |
B. | RBI acts as the Banker of the Government. |
C. | RBI is known as the Banker's Bank. |
D. | RBI does not regulate the credit flow. |
Answer» D. RBI does not regulate the credit flow. |
discuss
34. | Which is not a function of RBI ? |
A. | Holding cash reserves of all commercial banks and make available financial accommodation to them. |
B. | Assuming responsibility of all banking operations of the government. |
C. | Assuming the responsibility of the statistical analysis of data related to macro economy of India . |
D. | Assuming the responsibility to meet directly or indirectly all reasonable demands for the accommodation. |
Answer» C. Assuming the responsibility of the statistical analysis of data related to macro economy of India . |
discuss
35. | To control inflation and tackle the problem of exchange liquidity due to foreign exchange inflows, the RBI |
A. | Sells government securities. |
B. | Purchase securities |
C. | Decrease bank rate. |
D. | Raise interest rate. |
Answer» A. Sells government securities. |
discuss
36. | Ways and Means advanced by RBI refers to |
A. | Meeting temporary mismatches between receipts and expenditure. |
B. | Providing short term loans for consumption expenditure. |
C. | Buying goods from abro |
Answer» A. Meeting temporary mismatches between receipts and expenditure. |
discuss
37. | The commercial banks were required to keep some percentages of their time deposits and their demand deposits with the RBI in the form of reserves is known as |
A. | Statutory Liquidity ratio |
B. | Cash reserve ratio |
C. | Moral suasion |
D. | Open market operation |
Answer» B. Cash reserve ratio |
discuss
38. | Decreasing percentage of statutory liquidity ratio by RBI |
A. | Increase the volume credits at the hands of commercial banks. |
B. | Reduce inflation. |
C. | Decrease the volume credit at the hands of commercial banks. |
D. | Raise the interest rate charged by the commercial banks. |
Answer» A. Increase the volume credits at the hands of commercial banks. |
discuss
39. | If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as |
A. | Open market Operations. |
B. | Credit monitoring Arrangement |
C. | Selective credit control |
D. | Moral suasion. |
Answer» C. Selective credit control |
discuss
40. | The RBI’s function of Banker to Government implies |
A. | Issue of currency |
B. | Buys and sells government securities |
C. | Manages public debt by issuing government loans |
D. | Sells treasury bills on behalf of government |
Answer» C. Manages public debt by issuing government loans |
discuss
Done Reading?
Take a Test Download as PDF
Tags
Question and answers in Central Banks - RBI, Central Banks - RBI multiple choice questions and answers, Central Banks - RBI Important MCQs, Solved MCQs for Central Banks - RBI, Central Banks - RBI MCQs with answers PDF download