2. On which commission’s recommendations; Reserve Bank of India was established?
Correct : B. Hilton Young Commission
3. Which among the following is incorrect?
Correct : D. RBI does not regulate the flow of credit
4. Which of the following is true about the restrictions on RBI?
(i) It is not to compete with the commercial banks.
(ii) It is not allowed to pay interest on its deposits.
(iii) It cannot engage directly or indirectly in trade.
(iv) It cannot acquire or advice loans against immovable property.
(v) It is prohibited from purchasing its own shares or the shares of any other bank or any company or granting loans on such security.
Correct : C. all the above
5. Which of the following is not the work of RBI?
Correct : D. Allocating funds directly to the farmers for agricultural development
6. Which of the following words is not used in Monetary Policy?
Correct : D. Blue chip
7. For issuing / printing currency notes, the RBI has adopted a system –
Correct : A. Minimum Reserve System
8. Central Bank is a
Correct : C. Apex bank.
9. Central Bank is an institution which is
Correct : B. State owned
10. The methods of credit control used by RBI includes
(i) Open market operation
(ii) Changes in CRR and SLR
(iii) Selective credit control
(iv) Changes in SLR
Correct : D. (i), (ii), (iii) and (iv
11. The full form of EMI used in the banking sector is
Correct : C. Equated Monthly Installment
12. Bank rate is decided by
Correct : A. Reserve Bank of India
13. The reserves held by the Commercial Banks over and above the statutory minimum with the
RBI are called
Correct : C. Excess reserves
14. Banking in India is controlled by
Correct : D. Reserve Bank of India
15. Which of the following is not the function of Reserve Bank of India?
Correct : D. Issuing of one rupee notes and coins.
16. The objectives of monetary policy is / are
Correct : D. Both (a) and (b
17. Bank rate is defined as
Correct : D. Rate which RBI purchases or rediscount bills of exchange of commercial banks.
18. The Reserve Bank of India was nationalized in
Correct : A. 1st January 1949.
19. The Governor of RBI is appointed by
Correct : B. Central Government
20. The chairman of the Central Board of RBI is
Correct : A. Governor
21. Which of the following is true about the functions performed by RBI -
(i) It is the Bank of Issue
(ii) It acts as banker to the Government
(iii) It is the banker of other banks
(iv) It regulates the flow of credit
Correct : C. All the Above
22. Which of the following is true about the objectives of RBI trying to achieve-
(i) Price Stability
(ii) Reduce deficit
(iii) Encourage export
(iv) Growth
Correct : C. All the Above
23. The custodian of India’s foreign exchange reserve is
Correct : B. Reserve Bank of India (RBI
24. Which of the following is true about the functions of RBI-
Correct : C. Collecting data and publication
25. Which of the following is true that RBI as a banker to the government
(i) Maintaining and operating deposit accounts of Central and State Governments.
(ii) Receipt and collection of payments to the Central and State Governments.
(iii) Making payments on behalf of Central and state Governments.
(iv) Providing ways and means advances to the Central and State Governments.
Correct : C. All the Above
26. Which of the following coins is not issued by the RBI ?
Correct : A. Re. 1
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 ?
Correct : B. 2011
28. Which of the following is/ are the Quantitative Instrument of RBI ?
Correct : C. All of the above
29. Which among the following would not help RBI to control the inflation in the country ?
Correct : D. Increase in Repo Rate
30. What would be the impact on cash reserves of the commercial banks if RBI conducts the sale of securities?
Correct : A. Decrease
31. Which of the following works as the agent of RBI while it has no own offices ?
Correct : B. SBI
32. Which of the followong Governors of RBI also served as the Finance Minister of India ?
Correct : D. Dr. Manmohan Singh
33. Which of the following statements is/are not true ?
Correct : D. RBI does not regulate the credit flow.
34. Which is not a function of RBI ?
Correct : C. Assuming the responsibility of the statistical analysis of data related to macro economy of India .
35. To control inflation and tackle the problem of exchange liquidity due to foreign exchange inflows, the RBI
Correct : A. Sells government securities.
36. Ways and Means advanced by RBI refers to
Correct : A. Meeting temporary mismatches between receipts and expenditure.
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
Correct : B. Cash reserve ratio
38. Decreasing percentage of statutory liquidity ratio by RBI
Correct : A. Increase the volume credits at the hands of commercial banks.
39. If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as
Correct : C. Selective credit control
40. The RBI’s function of Banker to Government implies
Correct : C. Manages public debt by issuing government loans
41. Which of the following is a commercial bank?
Correct : A. State Bank of India
42. Which one of the following is near money?
Correct : D. All of the above
43. In July 1969, 14 major Indian scheduled banks were nationalised and 6 more banks were nationalised in
Correct : A. April 1980
44. The liabilities of a bank are
Correct : B. Time deposits and shares
45. The recent conversion of Financial Institutions into Commercial Banks or Non-Banking Finance Companies (NBFCs) under the regulatory aspect of RBI was suggested by
Correct : A. Narasimham Committee
46. Which property the paper money does not possess
Correct : C. Duality
47. Rupee is a coin
Correct : B. Token money
48. Which one of the following is not included in the function of money
Correct : A. Make demand and supply
49. Convertible money means
Correct : B. Government can give gold against it
50. Commercial banks create
Correct : A. Credit money
51. The most important features of money is
Correct : A. General acceptability
52. Which movement encourage the formation of commercial banks
Correct : A. Swadeshi movement
53. In which year was the Banking Regulation Act passed?
Correct : A. 1949
54. What is the most widely used tool of monetary policy?
Correct : C. Discount rate
55. Banking sector comes under which of the following sectors?
Correct : C. Service sectors
56. Who is responsible for the supply of coins in India?
Correct : B. Ministry of finance
57. Difference between total receipt and total expenditure is
Correct : B. budget deficit
58. The commercial banks in India are governed by
Correct : C. Indian Banking Regulation Act 1949
59. Which of the following limits the power of credit creation by commercial bank
Correct : D. None of the above
60. Deposits which arise from granting of loans are called
Correct : B. derivative deposits
61. Which among the following is considered to be the most liquid asset?
Correct : B. Money
62. The first financial institution set up in India
Correct : D. IFCI
63. In order to control credit and investment , the central bank of a country should
Correct : A. Sell securities in the open market and hike the cash reserve ratio
64. Which one of the following is not an instrument of credit control in the banking system?
Correct : C. Tax rate
65. The commercial bank do not perform one function out of the following
Correct : C. Issues currency notes
66. Credit creation power of the commercial banks gets limited by which of the following?
Correct : D. All the above
67. Number of times a unit of money change hands in the course of a year is called
Correct : C. Velocity of money
68. Assets – liability =
Correct : C. Capital
69. The assets can be convert into cash within a short period like one year or less are known as
Correct : A. Current asset
70. Debentures is also name as
Correct : B. Bond
71. A bills of exchange when drawn requires
Correct : C. Acceptance
72. The following is not a type of liability
Correct : A. Short term
73. Whichof the following is most liquid measure of money supply in India
Correct : A. M1
74. Which of the following money supply is used by RBI?
Correct : A. Currency notes
75. The term ‘bank liquidity’ means
Correct : C. Its capacity to convert its assets into cash
76. Accounting equation is base of
Correct : C. Double entry system
77. Anything used as money must be
Correct : D. Readily acceptable
78. Which of the following can change money supply
Correct : D. State Bank
79. Which of the following increase money supply in the country?
Correct : A. Purchase of bonds by State Bank
80. ‘One man one vote’ principle in Co-operative Society was recommended by
Correct : B. Mac Lagan Committee
81. Which of the following organizational structure is followed by cooperatives in India?.
Correct : B. Federal structure
82. The structure of cooperative banking system in India is federal and pyramid type of
Correct : B. three-tier
83. The Urban Credit Cooperative are also commonly known as
Correct : A. Urban Cooperative Banks
84. The first District Cooperative Banks was established at ____________ in 1910.
Correct : D. Ajmer in Rajasthan
85. Co-operative movement originated first in
Correct : B. England
86. Interest rate of Deposit of cooperative credit societies are fixed by
Correct : A. Registrar
87. The land mortgage banks grant _______________ to the farmers against the conveyance of land
as security.
Correct : C. long term loans
88. The National Co-operative Development Corporation (NCDC) was established in
Correct : D. March 1963
89. Co-operative banks
Correct : B. are of ‘unit banking type’
90. The first Development banks in India was
Correct : D. IFCI
91. Development banks provide
Correct : C. both medium-term and long-term credits
92. What is the apex organisation of Industrial Finance in India?
Correct : C. Industrial Development Bank of India
93. Which of the following is not an affiliate of the Reserve Bank of India?
Correct : D. Unit Trust of India
94. The National Housing Bank was set up in India as wholly-owned subsidiary of which one of the
following?
Correct : C. Reserve Bank of India
95. Which of the following organizations in India is mainly working to meet the credit needs of all
types of agricultural and rural development?
Correct : B. NABARD
96. The Industrial Development Banks of India (IDBI) was set up in
Correct : B. July 1964
97. The Industrial Reconstruction Corporation of India (IRCI) was set up in
Correct : A. 1971
98. The Industrial Reconstruction Corporation of India (IRCI) was converted into a statutory corporation called the Industrial Reconstruction Bank of India (IRBI) in
Correct : D. March 1985
99. The National Small Industries Corporation (NSIC) was set up by Government of India in
Correct : B. 1955
100. Changing the role and growth of Financial institutions, in recent years, Select Financial Institutions viz.,IDBI, ICICI Ltd., EXIM Bank, SIDBI and NABARD have been brought under the supervisory purview of the