Banking General Awareness Reserve Bank of India Question Bank

done Practice Questions - Reserve Bank of India - Structure and Functions Total Questions - 125

• question_answer1)
  Which of the following is not an apex institution?
  A)
   SBI                              done clear
  B)
   SIDBI done clear
  C)
   NABARD done clear
  D)
   State Cooperative bank done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer2)
  Sub-section 12AB of Section 17 of the Reserve Bank of India Act, 1934 defines the term as an instrument for borrowing funds by selling securities of the Central Government or a State Government or of such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities, with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed?
  A)
   Bank rate                      done clear
  B)
   LAP done clear
  C)
   Repo                            done clear
  D)
   Reverse repo done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer3)
  Which of the following fall under the qualitative methods of credit control adopted by Reserve Bank of India?
  A)
   Selective Credit Control done clear
  B)
   Credit Authorisation Scheme done clear
  C)
   Moral Suasion done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer4)
  Bank rate means
  A)
   the rate of interest charged by commercial banks on advances done clear
  B)
   the rate at which commercial banks discount bills of exchange for their clients done clear
  C)
   the rate of interest allowed by banks on the deposits done clear
  D)
   the standard rate at which the Reserve Bank of India is prepared to buy or rediscount bills of exchange other commercial paper eligible for purchase under the Reserve Bank of India Act 1934 done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer5)
  Banks and other financial institutions in India are required to maintain a certain  amount of liquid assets like cash, precious metals and other short-term securities as a reserve all the time in banking world, this is known as
  A)
   CRR                             done clear
  B)
   Fixed asset done clear
  C)
   SLR                             done clear
  D)
   PLR done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer6)
  The ratio of the Cash Reserves that the banks are required to keep with the RBI is known as
  A)
   Liquidity Ratio   done clear
  B)
   SLR done clear
  C)
   CRR done clear
  D)
   Net Demand and Time Liability done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer7)
  The term 'Ways and Means' advances refers to
  A)
   the advances allowed under DRI Scheme by commercial bank done clear
  B)
   the advances allowed by commercial banks under Twenty Point Economic Programme done clear
  C)
   the temporary advances made to the  government by its bankers to bridge the interval between expenditure and the flow of receipts of revenues done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer8)
  Which of the following training establishment is not run by Reserve Bank of India?
  A)
   Bankers Training College, Bombay done clear
  B)
   College of Agricultural Banking, Pune done clear
  C)
   NIBM done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer9)
  In period of depression when the Reserve Bank desires to encourage the banking system to create more credit, it
  A)
   reduces the bank rate done clear
  B)
   raises the bank rate done clear
  C)
   permits the bank rate to be decided by market forces done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer10)
  For the performance of its duties as the regulator of credit/ the Reserve Bank of India possesses the usual instruments of general credit control/ viz.
  A)
   bank rate done clear
  B)
   open market operation done clear
  C)
   the power to vary the reserve requirement of banks done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer11)
  The currency notes issued by RBI have a cent percent cover in     
  A)
   approved assets done clear
  B)
   gold done clear
  C)
   foreign exchange            done clear
  D)
   trustee securities done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer12)
  Which of the following do not fall within the functions of the Reserve Bank of India?
  A)
   Regulation of currency done clear
  B)
   Control of credit done clear
  C)
   Banker of the government/ banker's bank and lender of the last resort done clear
  D)
   Accepting deposits and making loans and advances to public done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer13)
  Which of the following are the main functions of the Reserve Bank of India?
  A)
   Granding licenses to commercial banks for opening branches in rural areas done clear
  B)
   Accepting deposits from the public done clear
  C)
   Regulating foreign exchange business done clear
  D)
   Acting as note issuing authority/ bankers' bank and banker to the government done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer14)
  The Public Debt Office of the Reserve Bank of India
  A)
   is a central depository for all types of Government securities except Treasury Bills done clear
  B)
   attends to the function of note issue the Reserve Bank of India done clear
  C)
   is responsible for maintaining external value of rupee done clear
  D)
   controls balance of payment position of the Government of India done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer15)
  Which of the following are the instruments of Credit Control in the hands of the RBI?

  I. Lowering or raising the discount and interest rates.

  II. Raising the minimum support price of the major agro products.

  III. Lowering or raising the minimum cash reserves maintained by the commercial banks.

  Select the correct answer using the codes given below
  A)
   Only I                          done clear
  B)
   Only II done clear
  C)
   Only III                        done clear
  D)
   Both I and III done clear
  E)
   Both II and III done clear
  View Solution play_arrow

• question_answer16)
  RBI's open market operation transactions are carried out with a view to regulate.
  A)
   liquidity in the economy done clear
  B)
   prices of essential commodities conflation done clear
  C)
   borrowing power of the banks done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer17)
  What does the letter 'L' denote in the term 'LAF' as referred every now and then in relation to monetary policy of the RBI?
  A)
   Liquidity done clear
  B)
   Liability done clear
  C)
   Leveraged done clear
  D)
   Longitudinal done clear
  E)
   Linear done clear
  View Solution play_arrow

• question_answer18)
  Which of the following is not a measure adopted by the Government or RBI to control inflation?
  A)
   Monetary policy done clear
  B)
   Fiscal policy done clear
  C)
   Public distribution system done clear
  D)
   Price control done clear
  E)
   Financial inclusion done clear
  View Solution play_arrow

• question_answer19)
  Whenever RBI does some Open Market Operation transactions/ actually it wishes to regulate which of the following?
  A)
   Inflation only     done clear
  B)
   Liquidity in economy done clear
  C)
   Borrowing powers of the banks done clear
  D)
   Flow of foreign direct investments done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer20)
  Which of the following are decided by the Reserve Bank of India?

  I. Deposit rates

  III. Base Rate

  III. Prime Lending Rate

  Select the correct answer using the codes given below:
  A)
   Only I done clear
  B)
   Only II done clear
  C)
   Only III done clear
  D)
   II and III done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer21)
  RBI has recently deregulated the rates of interest to be provided by various banks to their depositors/customers with effect from 25th October, on their accounts.
  A)
   Time deposit done clear
  B)
   Saving bank done clear
  C)
   Loan done clear
  D)
   Fixed deposit done clear
  E)
   Current done clear
  View Solution play_arrow

• question_answer22)
  Which of the following functions are not being performed by the Reserve Bank of India?
  A)
   Regulation of banks in India done clear
  B)
   Regulation of foreign direct investment in India done clear
  C)
   Foreign currency management in India done clear
  D)
   Control and supervision of money supply done clear
  E)
   Currency management in India done clear
  View Solution play_arrow

• question_answer23)
  RBI has introduced "Marginal Standing Facility" with the objective of
  A)
   Controlling Inflation done clear
  B)
   Containing instability in long term inter-bank rates done clear
  C)
   Containing instability in the overnight inter-bank rates done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer24)
  The Reserve Bank of India has directed all the banks to ensure that the names of their customers/ individuals or corporate, do not appear in any list published by the Security Council Committee. This act/directive of the RBI is to ensure which of the following?
  A)
   To ensure that the bank loans / advances taken by the individuals/organisations are used only in those activities for which they are taken done clear
  B)
   To ensure that money deposited in the bank has not come from unknown and unauthorised sources done clear
  C)
   To ensure that no one visits a foreign nation for any illegal activity by purchasing foreign currency from a bank done clear
  D)
   To ensure that Indians do not go to a nation where they are being targeted for racial discrimination done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer25)
  As we all know, banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called
  A)
   statutory liquidity ratio    done clear
  B)
   cash reserve ratio done clear
  C)
   bank deposit done clear
  D)
   reverse repo done clear
  E)
   government securities done clear
  View Solution play_arrow

• question_answer26)
  Reserve Bank of India is the lender of the last resort to scheduled commercial banks because
  A)
   the parties can approach RBI when their limits are exhausted done clear
  B)
   they are not able to get loans from other banks done clear
  C)
   RBI meets directly or indirectly all their reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policy. done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer27)
  The percentage of total deposits of a bank which it has to keep with itself in the form of liquid assets is called
  A)
   Statutory Liquidity Ratio done clear
  B)
   Cash Reserve Ratio (CRR) done clear
  C)
   Statutory Reserve Ratio done clear
  D)
   Cash Ratio done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer28)
  The interest rate at which the RBI lends to commercial banks in the short term to  maintain liquidity is known as
  A)
   interest rate done clear
  B)
   repo rate done clear
  C)
   reverse repo rate done clear
  D)
   bank rate done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer29)
  The bank rate is
  A)
   free to fluctuate according to the forces of demand and supply done clear
  B)
   set by the RBI done clear
  C)
   set by the RBI is directed by the Union Ministry of Finance done clear
  D)
   set by the RBI as advied by the Indian Banks Association done clear
  E)
   set by the Government of India on the recommendation of the Planning Commission done clear
  View Solution play_arrow

• question_answer30)
  The exchange rate in India is dependent upon

  1. Government policy

  2. Demand-supply forces

  3. Monetary policy objectives

  A)
   Only 2                          done clear
  B)
   2 & 3 done clear
  C)
   1 & 2                           done clear
  D)
   1, 2 & 3 done clear
  View Solution play_arrow

• question_answer31)
  Consider the following

  I. Bank Rate Policy

  II. Open Market Operations

  III. Devaluation of Rupee

  Which of the above are called fiscal measures?
  A)
   Only II                 done clear
  B)
   Both I and II done clear
  C)
   Both I and m done clear
  D)
   Only III done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer32)
  The names of which of the following rates/ratios cannot be seen in financial newspapers?
  A)
   Bank Rate                     done clear
  B)
   Repo Rate done clear
  C)
   Statutory Liquidity Ratio done clear
  D)
   Cash Reserve Ratio done clear
  E)
   Pulse Rate done clear
  View Solution play_arrow

• question_answer33)
  Prior approval (as also a license) of RBI is required for opening
  A)
   personal banking branches done clear
  B)
   merchant banking branches done clear
  C)
   asset recovery branches done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer34)
  Who will act as the banker to the Government of India?
  A)
   State Bank of India done clear
  B)
   Reserve Bank of India done clear
  C)
   NABARD done clear
  D)
   Nationalised Banks done clear
  E)
   Central Bank of India done clear
  View Solution play_arrow

• question_answer35)
  Who decides on the quantity of coins to be minted?
  A)
   The Government of India done clear
  B)
   RBI done clear
  C)
   SEBI done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer36)
  What is the animal of the insignia of the RBI?
  A)
   Lion done clear
  B)
   Tiger done clear
  C)
   Panther done clear
  D)
   Elephant done clear
  E)
   Horse done clear
  View Solution play_arrow

• question_answer37)
  Which of the following is NOT a source of funds of a commercial bank?
  A)
   Capital done clear
  B)
   Borrowings from RBI done clear
  C)
   Call money done clear
  D)
   Cash reserves with RBI done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer38)
  The methods of credit control by the Reserve Bank of India may be broadly divided into
  A)
   Open and close done clear
  B)
   Quantitative and Qualitative done clear
  C)
   Monetary and fiscal done clear
  D)
   Rural and urban done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer39)
  When was Reserve Bank of India Nationalised?
  A)
   1947 done clear
  B)
   1948 done clear
  C)
   1949 done clear
  D)
   1952 done clear
  E)
   1960 done clear
  View Solution play_arrow

• question_answer40)
  Generally, the minimum rate below which the banks do not lend is known as
  A)
   floor rate                       done clear
  B)
   repo rate done clear
  C)
   highest rate                   done clear
  D)
   base rate done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer41)
  SEBI, a regulator of securities market in India was established in the year 1988, but was empowered with statutory Powers in the form of Act in the year
  A)
   1990                            done clear
  B)
   1991 done clear
  C)
   1992                            done clear
  D)
   1993 done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer42)
  CGTMSE stands for
  A)
   Central Government Fund Trust for Medium and Small Enterprises done clear
  B)
   Credit Guarantee Fund for Medium Size Enterprises done clear
  C)
   Central Government Transfer Fund for Multispecialty Micro Enterprises done clear
  D)
   Credit Guarantee Fund Trust for Micro and Small Enterprises done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer43)
  What is the full form of 'CRR' as used in banking sector?
  A)
   Crucial Reserve Rate done clear
  B)
   Cash Reserve Ratio done clear
  C)
   Compulsory Return Rate done clear
  D)
   Credit and Reserve Ratio done clear
  E)
   None of these         done clear
  View Solution play_arrow

• question_answer44)
                 Many Regional Rural Banks are given license to open branches in small cities and towns. These licenses are given by
  A)
   Cabinet Committee on Economic Affairs done clear
  B)
   Reserve Bank of India done clear
  C)
   NABARD done clear
  D)
   Indian Banks' Association done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer45)
  Which of the following organization/ agencies is not associated with the world of banking and finance?
  A)
   SEBI                            done clear
  B)
   AMFI done clear
  C)
   RBI                              done clear
  D)
   ECGC done clear
  E)
   SPCA done clear
  View Solution play_arrow

• question_answer46)
  As per the new guidelines issued by SEBI, companies are required to list shares within how many days of the closure of the Initial Public Offers (IPOs)?
  A)
   12 days                        done clear
  B)
   15 days done clear
  C)
   21 days                        done clear
  D)
   30 days done clear
  E)
   25 days done clear
  View Solution play_arrow

• question_answer47)
  Which of the following key rate has not been altered by RBI since 2003?
  A)
   Bank rate done clear
  B)
   Statutory liquidity ratio done clear
  C)
   Cash reserve ratio done clear
  D)
   Repo rate done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer48)
  Commercial bills market is a part of
  A)
   organised money market done clear
  B)
   unorganised money market done clear
  C)
   stock market done clear
  D)
   capital market done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer49)
  Interest is usually paid on money market instruments
  A)
   at maturity done clear
  B)
   on request done clear
  C)
   twice a year done clear
  D)
   annually done clear
  E)
   All of these done clear
  View Solution play_arrow

• question_answer50)
  Government securities with terms of more than 1 year are called
  A)
   government bonds done clear
  B)
   treasury bills done clear
  C)
   bills of exchange done clear
  D)
   capital bills done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer51)
  Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets, freely and at market determined exchange rates? Policy of
  A)
   Capital Account Convertibility done clear
  B)
   Financial Deficit Management done clear
  C)
   Minimum Support Price done clear
  D)
   Restrictive Trade practices done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer52)
  On 1st March, 1992, Reserve Bank of India announced a new system of exchange rates known as
  A)
   partial convertibility done clear
  B)
   liberalised exchange rate system done clear
  C)
   Either [a] or [b] done clear
  D)
   Both [a] and [b] done clear
  E)
   Neither [a] nor [b] done clear
  View Solution play_arrow

• question_answer53)
  Borrower's ability to meet the immediate liabilities is indicated by
  A)
   Current Ratio done clear
  B)
   Acid Test Ratio done clear
  C)
   Debt Equity Ratio done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer54)
  The RBI has adopted ....... model, in which mobile banking is promoted through business correspondents of banks.
  A)
   Bank Led done clear
  B)
   Bank Mobile done clear
  C)
   Mobile done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer55)
  Which of the following is/are known as banker's bank?
  A)
   SBI                              done clear
  B)
   NABARD done clear
  C)
   RBI                              done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer56)
  Which of the following agencies/ organisations has recently decided that all the stock exchanges should introduce physical settlement of equity derivatives?
  A)
   Reserve Bank of India done clear
  B)
   Bombay Stock Exchange done clear
  C)
   Registrar of Companies done clear
  D)
   Securities and Exchange Board of India done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer57)
  CRR refers to the share of........ that banks have to maintain with RBI of their net demand and time liabilities.
  A)
   soft cash done clear
  B)
   forex reserves done clear
  C)
   gold done clear
  D)
   liquid cash done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer58)
  In India, RBI prescribes the minimum SLR level for scheduled commercial banks in India/ in specified assets as a percentage of bank's
  A)
   net demand and time liabilities done clear
  B)
   demand liability done clear
  C)
   time liability done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer59)
  Section 14 of Banking Regulation Act, 1949
  A)
   prohibits a banking company from creating a charge upon any unpaid capital of the company done clear
  B)
   contains a system of licensing of banks by the RBI done clear
  C)
   provides that the subscribed capital of a banking company should not be less than one-half of its authorised capital done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer60)
  Objective of Monetary Policy of RBI is to
  A)
   control inflation done clear
  B)
   discourage loading of commodities done clear
  C)
   encourage flow of credit into neglected sector done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer61)
  Which of the following statements is/are correct?
  A)
   SEBI was established in 1988 done clear
  B)
   It was made a fully autonomous body in 1992 done clear
  C)
   It regulates the securities market and protect the interests of investors in securities done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer62)
  A company which pools money from investors and invests in stocks, bonds and shares is called
  A)
   a bank done clear
  B)
   an insurance company done clear
  C)
   bank assurance done clear
  D)
   mutual fund done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer63)
  Which of the following rates is not decided by RBI?
  A)
   Bank rate done clear
  B)
   Repo rate done clear
  C)
   Reverse Repo rate done clear
  D)
   Base rate done clear
  E)
   Cash Reserve Ratio done clear
  View Solution play_arrow

• question_answer64)
  Association of National Exchange Members of India (ANMI) is a body consisting of
  A)
   Bankers and SEBI done clear
  B)
   SEBI and IBA done clear
  C)
   Brokers Operating in the National Exchanges done clear
  D)
   Bankers, SEBI, IBA and RBI done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer65)
  Bank rate as fixed by RBI, means
  A)
   rate of interest charged by banks from borrowers done clear
  B)
   rate of interest on bank deposits done clear
  C)
   rate of interest charged by RBI on its loans to banks done clear
  D)
   rate of interest on inter-bank loans done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer66)
  The Reserve Bank of India keeps on changing various ratios/rates frequently. Why is this done?

  I. To keep inflation under control.

  II. To ensure that Indian rupee does not lose its market value.

  III. To ensure that banks do not earn huge profits at the cost of public money.

  Select the correct answer using the codes given below:
  A)
   Only I                          done clear
  B)
   Only II done clear
  C)
   Only III                        done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer67)
  Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means
  A)
   sale or purchase of government securities done clear
  B)
   issuance of different types of bonds done clear
  C)
   auction of gold done clear
  D)
   to make available direct finance to borrowers done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer68)
  Which of the following statements about the money market is/are true?
  A)
   Not all commercial banks deal for their customers in the secondary market done clear
  B)
   Money markets are used extensively by businesses both to warehouse, surplus funds and to raise short-term funds done clear
  C)
   The single most influential participant in the US money market is the US Treasury Department done clear
  D)
   Both [a] and [b] done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer69)
  Under which section of the Reserve Bank of India Act, the Reserve Bank has the sole right of note issue?
  A)
   Section 20                    done clear
  B)
   Section 22 done clear
  C)
   Section 25                    done clear
  D)
   Section 28 done clear
  E)
   Section 30 done clear
  View Solution play_arrow

• question_answer70)
  From the given options, bring out the one which is not a function/power of Reserve Bank of India?
  A)
   To assume the responsibility meeting directly or indirectly all reasonable demands for accommodation done clear
  B)
   To hold cash reserves of the commercial banks and make available financial accommodation to them done clear
  C)
   To enjoy monopoly of the note issue done clear
  D)
   To assume responsibility of all banking operations of the government done clear
  E)
   The assume the responsibility of statistical analysis of data related to macro economy of India done clear
  View Solution play_arrow

• question_answer71)
  Who supplies interest-charts for different maturities and for different rates of interest?
  A)
   IBA done clear
  B)
   RBI done clear
  C)
   Government of India done clear
  D)
   IBRD done clear
  E)
   Other than the given options done clear
  View Solution play_arrow

• question_answer72)
  All venture Capital Funds must be registered with
  A)
   RBI                              done clear
  B)
   SEBI done clear
  C)
   Registrar of Companies done clear
  D)
   Either [a] or [b] done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer73)
  The Monetary and Credit Policy of India is the responsibility of which of the following?
  A)
   Planning Commission done clear
  B)
   Finance Ministry done clear
  C)
   RBI done clear
  D)
   National Advisory Council done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer74)
  Which of the following statements is correct?
  A)
   RBI is just like any ordinary commercial bank done clear
  B)
   RBI is responsible for the overall Monetary Policy done clear
  C)
   The Fiscal Policy of India is approved by RBI done clear
  D)
   RBI has Deputy Chairman Planning Commission on its board done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer75)
  The RBI is not expected to perform the function of
  A)
   the banker to the government done clear
  B)
   accepting deposit from commercial banks done clear
  C)
   accepting deposit from commercial public done clear
  D)
   issue of currency done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer76)
  RBI stipulates a healthy mix of CASA in the business figures of banks. What does it denote?
  A)
   Customer Analysis and Savings Pattern done clear
  B)
   Cost Appreciation and Selling Analysis done clear
  C)
   Current Account and Savings Account done clear
  D)
   Credit and Savings Aggregate done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer77)
  Which of the following is/are functions of the RBI?

  I. Acts as the currency authority.

  II. Controls money supply and credit.

  III. Manages foreign exchange.

  IV. Serves as a banker to the government.

  Select the correct answer using the codes given below:
  A)
   I and II done clear
  B)
   II and III done clear
  C)
   I, II and III done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer78)
  Quantitative instrument of RBI can be
  A)
   Bank Rate Policy (BRP) done clear
  B)
   Cash Reserve Ratio (CRR) done clear
  C)
   Statutory Liquidity Ratio (SLR) done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer79)
  Which of the following acts govern the RBI functions?
  A)
   RBI Act, 1934 done clear
  B)
   Banking Regulation Act, 1949 done clear
  C)
   Companies Act, 1956 done clear
  D)
   Foreign Exchange Regulation Act, 1973 done clear
  E)
   Foreign Exchange Management Act, 1999 done clear
  View Solution play_arrow

• question_answer80)
  The bank rate means
  A)
   rate of interest charged by commercial banks from borrowers done clear
  B)
   rate of interest at which commercial banks discounted  bills  of their borrowers done clear
  C)
   rate of interest allowed by commercial banks on their deposits done clear
  D)
   rate at which RBI purchases or rediscounts bills of exchange of commercial banks done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer81)
  Banks borrow money from the RBI on which of the following rates?
  A)
   Reverse repo rate done clear
  B)
   Repo rate done clear
  C)
   SLR done clear
  D)
   CRR done clear
  E)
   Savings rate done clear
  View Solution play_arrow

• question_answer82)
  The first Governor of the Reserve Bank of India from 1st April, 1935 to 30th June, 1937 was
  A)
   Sir Osbome Smith done clear
  B)
   Sir James Taylor done clear
  C)
   CD Deshmukh done clear
  D)
   Sir Benegal Rama Rao done clear
  E)
   KG Ambegaonkar done clear
  View Solution play_arrow

• question_answer83)
  Headquarters of Reserve Bank of India is in
  A)
   New Delhi                     done clear
  B)
   Mumbai done clear
  C)
   Kolkata                         done clear
  D)
   Chennai done clear
  E)
   Hyderabad done clear
  View Solution play_arrow

• question_answer84)
  SEBI was established in
  A)
   1993 done clear
  B)
   1992 done clear
  C)
   1988 done clear
  D)
   1990 done clear
  E)
   1994 done clear
  View Solution play_arrow

• question_answer85)
  In 1991, the SLR was as high as
  A)
   25%                             done clear
  B)
   30% done clear
  C)
   38.5%                          done clear
  D)
   39.5% done clear
  E)
   40% done clear
  View Solution play_arrow

• question_answer86)
  Shares of companies notified by SEBI can be traded only when these are in ....... form
  A)
   physical                        done clear
  B)
   dematerialised done clear
  C)
   Either [a] and [b]           done clear
  D)
   centralised done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer87)
  At which rate the RBI lends short-term money to the bank?
  A)
   PLR                             done clear
  B)
   CRR done clear
  C)
   Repo rate                      done clear
  D)
   Reverse repo rate done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer88)
  When RBI acts as a baker to the government, what does it do?
  A)
   RBI keeps bank accounts of the government done clear
  B)
   RBI carries out government transactions done clear
  C)
   RBI advises the government on all financial and monetary matters done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer89)
  A bank which acts as a banker of other banks is called
  A)
   saving bank done clear
  B)
   commercial bank done clear
  C)
   investment bank done clear
  D)
   development bank done clear
  E)
   central bank done clear
  View Solution play_arrow

• question_answer90)
  The Reserve Bank of India was set-up on the recommendations of the
  A)
   Narasimham Committee done clear
  B)
   Hilton-Young Commission done clear
  C)
   Mahalanobis Committee done clear
  D)
   Fazal Ali Commission done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer91)
  IRDA with its headquarters at ............. is the Regulatory Authority for all insurance companies in India including the Life Insurance Corporation of India.
  A)
   Hyderabad done clear
  B)
   Bengaluru done clear
  C)
   Mumbai done clear
  D)
   Delhi done clear
  E)
   Chandigarh done clear
  View Solution play_arrow

• question_answer92)
  Which of the following is/are key policy rates used by RBI to influence interest rates?

  I. Bank rate and repo rate

  II. Reverse repo rate

  III. CRR and SLR

  Select the correct answer using the codes given below
  A)
   Only I                          done clear
  B)
   Only II done clear
  C)
   Only III                        done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer93)
  Which of the following rates signals the RBI's long-term outlook on interest rates?
  A)
   Repo rate                      done clear
  B)
   Reverse repo rate done clear
  C)
   Bank rate                      done clear
  D)
   SLR done clear
  E)
   CRR done clear
  View Solution play_arrow

• question_answer94)
  RBI provides Ways and Means Advances (WMA) to
  A)
   Central Government       done clear
  B)
   State Government done clear
  C)
   Both                            done clear
  D)
   None done clear
  View Solution play_arrow

• question_answer95)
  As we all know. Cash Reserve Ratio (CRR) is the percentage of the deposits keep in reserve with them. This ratio is also known as
  A)
   Repo rate                      done clear
  B)
   Reverse repo rate done clear
  C)
   SLR                             done clear
  D)
   Liquidity ratio done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer96)
  At which of the following rates does the Central Bank lend to banks against government securities?
  A)
   Repo Rate done clear
  B)
   Reverse Repo Rate done clear
  C)
   Bank Rate done clear
  D)
   SLR done clear
  E)
   CRR done clear
  View Solution play_arrow

• question_answer97)
  The Interest rate at which the RBI lends to commercial banks in the short-term to maintain liquidity is known as
  A)
   interest rate                   done clear
  B)
   repo rate done clear
  C)
   reverse repo rate done clear
  D)
   bank rate done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer98)
  Reverse repo means
  A)
   injecting liquidity by the Central Bank of a country through purchase of government securities done clear
  B)
   absorption of liquidity from the market by sale of government securities done clear
  C)
   balancing liquidity with a view to enhance economic growth rate done clear
  D)
   improving the position of availability of the securities in the market done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer99)
  An agreement, which in fact is a contract, between the RBI and banks for the sale and repurchase of government securities and short-term treasury bills at a future date and for which the RBI indicates 'the interest rate'/ is generally known as
  A)
   repo rate                       done clear
  B)
   bank rate done clear
  C)
   reverse repo rate done clear
  D)
   prime lending rate done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer100)
  RBI generally reviews the Monetary Policy after every
  A)
   3 months                      done clear
  B)
   6 months done clear
  C)
   9 months                      done clear
  D)
   10 months done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer101)
  Which of the following rates is decided by the market conditions and not by RBI?
  A)
   Bank rate                      done clear
  B)
   SLR done clear
  C)
   CRR                             done clear
  D)
   Inflation rate done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer102)
  An average citizen cannot open a Savings account in which of the following?
  A)
   Commercial bank           done clear
  B)
   Post office done clear
  C)
   Co-operative bank          done clear
  D)
   RBI done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer103)
  As per the existing policy, the Cash Reserve Ratio (CRR) of scheduled banks is fixed at a certain percentage of their NDTL. What is full form of NDTL?
  A)
   New Demand and Tenure Liabilities done clear
  B)
   Net Demand and Time Liabilities done clear
  C)
   National Deposits and Total Liquidity done clear
  D)
   Net Duration and Total Liquidity done clear
  E)
   New Deposits and Term Liquidity done clear
  View Solution play_arrow

• question_answer104)
  As per the new guidelines issued by SEBI, companies are required to list shares within how many days of the closure of the Initial Public Offers (IPOs)?
  A)
   60 days                        done clear
  B)
   12 days done clear
  C)
   30 days                        done clear
  D)
   45 days done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer105)
  On which one of the following issues can SEBI penalise any company in India?

  I. Violation of Banking Regulation Act.

  II. Violation of foreign portfolio investment guidelines.

  III. For violation of Negotiable Instrument Act.

  Select the correct answer using the codes given below:
  A)
   Only I                          done clear
  B)
   I, II, and III done clear
  C)
   I and II                         done clear
  D)
   II and III done clear
  E)
   All of these done clear
  View Solution play_arrow

• question_answer106)
  Assume that Reserve Bank of India reduces the bank rate by 1%, what will be its impact?
  A)
   Less liquidity in the market done clear
  B)
   More liquidity in the market done clear
  C)
   No change in the liquidity in the market done clear
  D)
   Mobilisation of more deposits by commercial banks done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer107)
  Which of the following agencies/ organisations has decided to make major changes for ULIPs?
  A)
   IRDA                            done clear
  B)
   RBI done clear
  C)
   AMFI                           done clear
  D)
   FRBI done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer108)
  Which of the following is/are objective(s) of our Monetary Policy?

  I. To anchor inflation expectations.

  II. To actively manage liquidity.

  III. To maintain interest rate regime consistent with price output and financial stability.

  Select the correct answer using the codes given below
  A)
   Only I                          done clear
  B)
   Only II done clear
  C)
   I and III                        done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer109)
  The Reserve Bank of India had diverted its stake in State Bank of India to
  A)
   IDBI Bank                    done clear
  B)
   LIC done clear
  C)
   ICICI Bank                   done clear
  D)
   Government of India done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer110)
  As per the reports in the leading newspapers. Securities and Exchange Board of India (SEBI) has asked the mutual fund industry to stop 'Misselling' their schemes to investors. What is 'Misselling' of products?

  I. Misselling takes place when mutual funds are sold without telling the likely returns.

  II. When agents sell the products without telling investors what are the risks involved in investing in mutual funds.

  III. When agents invest somebody's money in mutual funds without their knowledge/ it is called misselling.

  Select the correct answer using the codes given below:
  A)
   Only I                          done clear
  B)
   Only II done clear
  C)
   Only III                        done clear
  D)
   All of these done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer111)
  Reserve Bank of India-Structure and Functions A customer wishes to purchase some US dollars in India. He/She should go to        
  A)
   Public Debt Division of the RBI done clear
  B)
   American Express Bank done clear
  C)
   RBI or any branch of a bank which is authorised for such business done clear
  D)
   Ministry of Foreign Affairs done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer112)
  In January, 1998, the Reserve Bank of India introduced new regulatory framework for safeguarding the interest of depositors. The guidelines comprises
  A)
   NBFCs falling short of the stipulated minimum Net Owned Funds (NOF) were precluded from accepting public deposits done clear
  B)
   An NBFC not having minimum credit rating as prescribed by RBI is not eligible to accept fresh deposits done clear
  C)
   Ceiling on the quantum public deposits was related to the level of credit rating given by the approved credit rating agencies done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer113)
  RBI prescribes the cash reserve ration to be maintained by banks as part of prudential norms. In what way is this cash reserve maintained by the banks?
  A)
   It is kept as reserves of gold with RBI      done clear
  B)
   It is maintained as cash with RBI done clear
  C)
   Each bank keeps the reserve in their respective head offices done clear
  D)
   It is maintained as investments in government bonds                   done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer114)
  RBI has reduce by one percentage point the Statutory Liquidity Ratio required to be maintained by banks to 23%. In what form is this stipulation reacquired to be fulfilled?
  A)
   Banks are required to keep the amount in approved government securities of    the appropriate value done clear
  B)
   The amount to be maintained in cash and securities with RBI done clear
  C)
   The required amount is to be maintained in gold with RBI done clear
  D)
   All of the above done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer115)
  The chief economic advisor to the Government of India has recently changed. Who is the present incumbent?
  A)
   Raghurm Rajan  done clear
  B)
   Bimal Jalan done clear
  C)
   Rakesh Mohan   done clear
  D)
   Kaushik Basu done clear
  E)
   Y. V .Reddy done clear
  View Solution play_arrow

• question_answer116)
  The financial year for banks is April-March, but what is the financial year for RBI?
  A)
   January - December done clear
  B)
   April - March done clear
  C)
   July - June done clear
  D)
   October - September done clear
  E)
   June-May done clear
  View Solution play_arrow

• question_answer117)
  Which of the following rates/ratios is not covered under the RBI monetary and credit policy?
  A)
   Bank rate done clear
  B)
   Exchange rate of foreign currencies done clear
  C)
   Repo rate done clear
  D)
   Reverse repo rate done clear
  E)
   Cash reserve ratio done clear
  View Solution play_arrow

• question_answer118)
  Under provisions of which one of the following Acts does the RBI issue directives to the Banks in India?
  A)
   RBI Act done clear
  B)
   Banking Regulation Act done clear
  C)
   Essential Commodities Act done clear
  D)
   RBI and Banking Regulation Act done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer119)
  Which one of the following tools is used by RBI for selective credit control?
  A)
   It advises banks to lend against certain commodities done clear
  B)
   It advises banks to recall the loans for advances against certain commodities done clear
  C)
   It advises banks to charge higher rate of interest for advance against certain commodities. done clear
  D)
   It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable. done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer120)
  Under provisions of which one of the following Acts has the Reserve Bank of India has the power to regulate, supervise and control the banking sector?
  A)
   RBI Act                        done clear
  B)
   Banking Regulation Act done clear
  C)
   Negotiable Instruments Act done clear
  D)
   RBI and Banking Regulation Act done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer121)
  As we all know, the Bank Rate at present is fixed at 6.75%. What does it mean in context to the banking operations?
  A)
   No bank will be able to give loan to any patron at a rate lower than the Bank Rate. done clear
  B)
   Bank should give loan to their priority sector customers/borrowers at the rate of 6.75% only. They cannot charge less or more than this from their priority sector clients. done clear
  C)
   Banks are required to invest 6.75% of their total capital on financial inclusion and inclusive banking operations. done clear
  D)
   Banks will be required to give 6.75% of their total deposits to the Govt. of India for meeting its Balance of Trade requirements. done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer122)
  The rate on which banks borrow from the RBI is called.......
  A)
   SLR                             done clear
  B)
   CRR done clear
  C)
   Interest Rate      done clear
  D)
   Bank Rate done clear
  E)
   Repo Rate done clear
  View Solution play_arrow

• question_answer123)
  Which of the following is the full form of the term SLR as used in the banking sector?
  A)
   Social Lending Ratio done clear
  B)
   Statutory Liquidity Ratio done clear
  C)
   Scheduled Liquidity Rate done clear
  D)
   Separate Lending Rate done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer124)
  The Reserve Bank of India keeps on changing various ratio/rates frequently. Why is this done?

  (1) To keep inflation under control.

  (2) To ensure that Indian Rupee does not lose its market value.

  (3) To ensure that Banks do not earn huge profits at the cost of public money.

  A)
   Only (1)                        done clear
  B)
   Only (2) done clear
  C)
   Only (3)                        done clear
  D)
   All 1, 2 & 3 done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer125)
  If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to
  A)
   increase it                     done clear
  B)
   decrease it done clear
  C)
   no impact                     done clear
  D)
   constant done clear
  E)
   None of these done clear
  View Solution play_arrow