Question 1

Decreasing percentage of statutory liquidity ratio by RBI

Accepted Answer

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. 
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. A

Question 2

Which of the following coins is not issued by the RBI ?

Accepted Answer

A) Re. 1 
B) Rs. 2 
C) Rs. 5 
D) Rs. 10 
A) Re. 1 
B) Rs. 2 
C) Rs. 5 
D) Rs. 10 A

Question 3

In July 1969, 14 major Indian scheduled banks were nationalised and 6 more banks were nationalised in

Accepted Answer

A) April 1980 
B) May 1980 
C) April 1981 
D) May 1981 
A) April 1980 
B) May 1980 
C) April 1981 
D) May 1981 A

Question 4

Which among the following would not help RBI to control the inflation in the country ?

Accepted Answer

A) Increase in Reserve Ratio Requirements 
B) Increase in Bank Rate 
C) Purchase of securities in open market 
D) Increase in Repo Rate 
A) Increase in Reserve Ratio Requirements 
B) Increase in Bank Rate 
C) Purchase of securities in open market 
D) Increase in Repo Rate

Question 5

Which one of the following is near money?

Accepted Answer

A) Treasury Bills 
B) Bills of Exchange 
C) Bonds and Debentures 
D) All of the above 
A) Treasury Bills 
B) Bills of Exchange 
C) Bonds and Debentures 
D) All of the above

Question 6

To control inflation and tackle the problem of exchange liquidity due to foreign exchange inflows, the RBI

Accepted Answer

A) Sells government securities. 
B) Purchase securities 
C) Decrease bank rate. 
D) Raise interest rate. 
A) Sells government securities. 
B) Purchase securities 
C) Decrease bank rate. 
D) Raise interest rate.

Question 7

Rupee is a coin

Accepted Answer

A) Full Value 
B) Token money 
C) Credit money 
D) Convertible 
A) Full Value 
B) Token money 
C) Credit money 
D) Convertible

Question 8

Which of the following works as the agent of RBI while it has no own offices ?

Accepted Answer

A) IMF 
B) SBI 
C) GOI 
D) Ministry of Finance 
A) IMF 
B) SBI 
C) GOI 
D) Ministry of Finance

Question 9

What would be the impact on cash reserves of the commercial banks if RBI conducts the sale of securities?

Accepted Answer

A) Decrease 
B) Increase 
C) Either increase or decrease 
D) Remains contant 
A) Decrease 
B) Increase 
C) Either increase or decrease 
D) Remains contant

Question 10

The RBI's function of Banker to Government implies

Accepted Answer

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 
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

Question 11

The liabilities of a bank are

Accepted Answer

A) Advance and loans 
B) Time deposits and shares 
C) Cash with reserve ratio 
D) Bonds and debentures of share holders 
A) Advance and loans 
B) Time deposits and shares 
C) Cash with reserve ratio 
D) Bonds and debentures of share holders

Question 12

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

Accepted Answer

A) Statutory Liquidity ratio 
B) Cash reserve ratio 
C) Moral suasion 
D) Open market operation 
A) Statutory Liquidity ratio 
B) Cash reserve ratio 
C) Moral suasion 
D) Open market operation

Question 13

Which one of the following is not included in the function of money

Accepted Answer

A) Make demand and supply 
B) Store of value 
C) Medium of exchange 
D) Measure of value 
A) Make demand and supply 
B) Store of value 
C) Medium of exchange 
D) Measure of value

Question 14

The recent conversion of Financial Institutions into Commercial Banks or Non-Banking Finance Companies (NBFCs) under the regulatory aspect of RBI was suggested by

Accepted Answer

A) Narasimham Committee 
B) Ministry of Company Affairs 
C) Ministry of Finance 
D) None of the above 
A) Narasimham Committee 
B) Ministry of Company Affairs 
C) Ministry of Finance 
D) None of the above

Question 15

Which of the following statements is/are not true ?

Accepted Answer

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. 
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.

Question 16

Commercial banks create

Accepted Answer

A) Credit money 
B) Token money 
C) Legal money 
D) Do not create money 
A) Credit money 
B) Token money 
C) Legal money 
D) Do not create money

Question 17

If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as

Accepted Answer

A) Open market Operations. 
B) Credit monitoring Arrangement 
C) Selective credit control 
D) Moral suasion. 
A) Open market Operations. 
B) Credit monitoring Arrangement 
C) Selective credit control 
D) Moral suasion.

Question 18

Ways and Means advanced by RBI refers to

Accepted Answer

A) Meeting temporary mismatches between receipts and expenditure. 
B) Providing short term loans for consumption expenditure. 
C) Buying goods from abro 
A) Meeting temporary mismatches between receipts and expenditure. 
B) Providing short term loans for consumption expenditure. 
C) Buying goods from abro

Question 19

Convertible money means

Accepted Answer

A) It can buy means 
B) Government can give gold against it 
C) Illegal money 
D) Low value of money 
A) It can buy means 
B) Government can give gold against it 
C) Illegal money 
D) Low value of money

Question 20

Which of the following is a commercial bank?

Accepted Answer

A) State Bank of India 
B) Unit Trust of India (UTI 
C) IDBI 
D) NABARD 
A) State Bank of India 
B) Unit Trust of India (UTI 
C) IDBI 
D) NABARD

Decreasing percentage of statutory liquidity ratio by RBI

Which of the following coins is not issued by the RBI ?

In July 1969, 14 major Indian scheduled banks were nationalised and 6 more banks were nationalised in

Which among the following would not help RBI to control the inflation in the country ?

Which one of the following is near money?

To control inflation and tackle the problem of exchange liquidity due to foreign exchange inflows, the RBI

Rupee is a coin

Which of the following works as the agent of RBI while it has no own offices ?

What would be the impact on cash reserves of the commercial banks if RBI conducts the sale of securities?

The RBI's function of Banker to Government implies

The liabilities of a bank are

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

Which one of the following is not included in the function of money

The recent conversion of Financial Institutions into Commercial Banks or Non-Banking Finance Companies (NBFCs) under the regulatory aspect of RBI was suggested by

Which of the following statements is/are not true ?

Commercial banks create

If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as

Ways and Means advanced by RBI refers to

Convertible money means

Which of the following is a commercial bank?

Reserve Bank of India and Its Functions

Money, Banking and Monetary Policy in India

Cooperative and Development Banks in India

Financial Institutions and Foreign Exchange Market in India

Foreign Exchange and Exchange Rates

Exchange Rate and Currency Systems: Understanding Market Forces and Transaction Types

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Exam 2: RBI and Banking : Coins, Instruments, Functions

Decreasing percentage of statutory liquidity ratio by RBI

Which of the following coins is not issued by the RBI ?

In July 1969, 14 major Indian scheduled banks were nationalised and 6 more banks were nationalised in

Which among the following would not help RBI to control the inflation in the country ?

Which one of the following is near money?

To control inflation and tackle the problem of exchange liquidity due to foreign exchange inflows, the RBI

Rupee is a coin

Which of the following works as the agent of RBI while it has no own offices ?

What would be the impact on cash reserves of the commercial banks if RBI conducts the sale of securities?

The RBI's function of Banker to Government implies

The liabilities of a bank are

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

Which one of the following is not included in the function of money

The recent conversion of Financial Institutions into Commercial Banks or Non-Banking Finance Companies (NBFCs) under the regulatory aspect of RBI was suggested by

Which of the following statements is/are not true ?

Commercial banks create

If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as

Ways and Means advanced by RBI refers to

Convertible money means

Which of the following is a commercial bank?

Reserve Bank of India and Its Functions

Money, Banking and Monetary Policy in India

Cooperative and Development Banks in India

Financial Institutions and Foreign Exchange Market in India

Foreign Exchange and Exchange Rates

Exchange Rate and Currency Systems: Understanding Market Forces and Transaction Types

Filters