Banking General Awareness Reserve Bank of India Question Bank

done Reserve Bank of India Monetary Policy Total Questions - 25

• question_answer1)
  RBI is the lender of last resort, what does it mean?
  A)
  RBI advances necessary credit against eligible securities. done clear
  B)
  Commercial banks give fund to RBI done clear
  C)
  RBI advances money to public whenever there is any emergency done clear
  D)
  All the above done clear
  E)
  None of these done clear
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• question_answer2)
  Which of the following statements is incorrect?
  A)
  RBI is a profit making institution acting in the interest of the Govt. done clear
  B)
  Every country has only one central bank which is managed by govt. officials. done clear
  C)
  RBI does not perform any ordinary commercial banking functions. done clear
  D)
  RBI has adopted of MRS to issue currency. done clear
  E)
  None of these done clear
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• question_answer3)
  _____Credit policy promotes investment.
  A)
  Dear done clear
  B)
  Cheap done clear
  C)
  Restricted done clear
  D)
  Green done clear
  E)
  None of these done clear
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• question_answer4)
  What can RBI do to improve efficiency of the banking system?
  A)
  It can bring about compulsory amalgamation of weak banks. done clear
  B)
  It can claim for compulsory liquidation. done clear
  C)
  It can expedite winding up of proceedings to safeguard the interest of depositors. done clear
  D)
  All of the above done clear
  E)
  None of these done clear
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• question_answer5)
  Which act has given control & supervision power to RBI over commercial banks?
  A)
  RBI Act, 1934. done clear
  B)
  Banking regulation Act, 1949. done clear
  C)
  Both RBI Act, 1934 & Banking Regulation Act, 1949. done clear
  D)
  Banking regulation Act, 1960. done clear
  E)
  None of these done clear
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• question_answer6)
  Central bank promotes commercial banking by
  A)
  Providing cheap rediscounting facilities to commercial banks. done clear
  B)
  Providing liberalized rediscounting to commercial banks. done clear
  C)
  Giving subsidies to new banks. done clear
  D)
  All of the above done clear
  E)
  None of these done clear
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• question_answer7)
  Whenever RBI does some open market operation transaction, actually it wishes to which of the followings?
  A)
  Inflation only done clear
  B)
  Liquidity in economy done clear
  C)
  Increase borrowing powers of the banks done clear
  D)
  Flow of FDI done clear
  E)
  None of these done clear
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• question_answer8)
  Where was the first headquarter of RBI?
  A)
  New Delhi done clear
  B)
  Mumbai done clear
  C)
  Kolkata done clear
  D)
  Chennai done clear
  E)
  None of these done clear
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• question_answer9)
   

  Which of the following is/are the objective(s) of monetary policy? (1) To anchor inflation expectation. (2) To actively manage liquidity (3) To maintain interest rate regime output & financial stability.

  A)
  Only (1) done clear
  B)
  All (1), (2), (3) done clear
  C)
  Only B done clear
  D)
  Both 1 & 2 done clear
  E)
  None of these done clear
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• question_answer10)

  Which of the following is/are KEY POLICY rate used by RBI to influence interest rate? (1) Bank rate & repo rate (2) Reverse repo rate (3) CRR & SLR

  A)
  Only (1) done clear
  B)
  Only (2) done clear
  C)
  All done clear
  D)
  Only [C] done clear
  E)
  Both [A] & [B] done clear
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• question_answer11)
  Which of the following rates signals the RBI's long term outlook on interest rate?
  A)
  Repo rate done clear
  B)
  Reverse repo rate done clear
  C)
  Bank rate done clear
  D)
  SLR done clear
  E)
  CRR done clear
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• question_answer12)
  The monetary authority in India, viz RBI is bound to maintain a reserve against the note issued whatever may be the amount, this system is called as ————
  A)
  MRS done clear
  B)
  PRS done clear
  C)
  Maximum fiduciary issue system done clear
  D)
  Simple deposit system done clear
  E)
  None of these done clear
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• question_answer13)
  Which of the following is not the function of RBI?
  A)
  Managing FOREX reserve done clear
  B)
  Deciding Bank rate, CRR and SLR from time to rime done clear
  C)
  Opening saving account for general public done clear
  D)
  Prescribing the capital adequacy ratio done clear
  E)
  Current Management done clear
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• question_answer14)
  Banks wishing to provide mobile banking services have to obtain permission from which of the following authority:
  A)
  RBI done clear
  B)
  TRAI done clear
  C)
  IRDAI                            done clear
  D)
  No permission needed done clear
  E)
  None of these done clear
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• question_answer15)
  RBI takes certain steps to curb the menace of inflation. In this context, which among the following will not help RBI in controlling the inflation in the country?
  A)
  An increase in the bank rate done clear
  B)
  An increase in, the reverse ratio requirements done clear
  C)
  A purchase of securities in the open market done clear
  D)
  Increasing the repo rate done clear
  E)
  None of these done clear
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• question_answer16)
  What will be the impact on the cash reserves of commercial banks if RBI conduct a sale of securities?
  A)
  Increase done clear
  B)
  Decrease done clear
  C)
  Remain constant done clear
  D)
  Neither Increase or Decrease done clear
  E)
  None of these done clear
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• question_answer17)
  Under which qualitative tool, RBI fixes maximum limit to loan and advances that can be made above which the commercial banks cannot exceed?
  A)
  Rationing of credit done clear
  B)
    Margin requirement done clear
  C)
  Loan-value ratio done clear
  D)
  Moral suasion done clear
  E)
  None of these done clear
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• question_answer18)
  To combat rising inflation, RBI has to do which of the following activities?
  A)
  increases bank rate done clear
  B)
    Sell govt. securities done clear
  C)
  Increase reserve ratio done clear
  D)
  All of the above done clear
  E)
  None of these done clear
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• question_answer19)
  If the cash reserve ratio (CRR) is increased by the RBI, Its impact on the expansion of credit creation will be to
  A)
  Decreases it done clear
  B)
  Increases it done clear
  C)
  No impact done clear
  D)
  Can't say done clear
  E)
  None of these done clear
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• question_answer20)
  What is the maximum number of official directors in RBI's central board of Directors?
  A)
  One done clear
  B)
  Two done clear
  C)
  Four done clear
  D)
  Five done clear
  E)
  None of these done clear
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• question_answer21)
  Who appoints the governor of RBI?
  A)
  President of India done clear
  B)
  Prime minister of India done clear
  C)
  Central govt. of India done clear
  D)
  Vice President of India done clear
  E)
  None of these done clear
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• question_answer22)
  The RBI reduces or increases different rates and ratios in "basis points" one basis point is equal to
  A)
  One tenth of a percent done clear
  B)
  One hundredth of a percent done clear
  C)
  One thousandth of a percent done clear
  D)
  One percent done clear
  E)
  One hundred percent done clear
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• question_answer23)
  Under the BSBDA scheme of the RBI, any individual including those from weaker sections of the society, can open Zero balance account in which of the following banks?
  A)
  Public sector banks done clear
  B)
  Private sector banks done clear
  C)
  Foreign banks operating in India done clear
  D)
  All of the above done clear
  E)
  Only [a] and [b] done clear
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• question_answer24)
  A major public sector bank raised, interest rate on loan by 25 basis points. This means the bank has raised interest by 25 basis points of
  A)
  Saving bank interest rate done clear
  B)
  Base Lending rate done clear
  C)
  Repo Rate done clear
  D)
  Present rate on deposits done clear
  E)
  Discounts rate of interest done clear
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• question_answer25)
  The LAP (Liquidity adjustment facility) is a facility extended by the RBI to the scheduled commercial banks excluding
  A)
  RRBs done clear
  B)
  Private Banks done clear
  C)
  Nationalized Banks done clear
  D)
  SBI done clear
  E)
  None of these done clear
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