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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
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