MCQOPTIONS
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MCQOPTIONS
This section includes 99 Mcqs, each offering curated multiple-choice questions to sharpen your Bank Rates and Monetary Policy knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Selection of NS Vishwanathan as new Deputy Governor of the RBI was approved by ACC. Whom will he succeed? |
| A. | R. Gandhi |
| B. | H. R. Khan |
| C. | None of the above |
| D. | Raghuram Rajan |
| Answer» C. None of the above | |
| 2. |
RBI s new debt recast norms are credit positive for banks and will reduce gross NPA by how many basis points following one year? |
| A. | 30-100 |
| B. | 40-100 |
| C. | 50-100 |
| D. | 60-100 |
| Answer» B. 40-100 | |
| 3. |
RBI governor HR Khan announced a committee to study which technology? |
| A. | Information |
| B. | Blockfield |
| C. | Blockchain |
| D. | Bioinformatics |
| Answer» C. Blockchain | |
| 4. |
RBI on July 7, 2016 notified interest rates for different small saving schemes for quarter ending September. What is the interest rate on savings deposits? |
| A. | 3 |
| B. | 4 |
| C. | 3.5 |
| D. | 4.5 |
| Answer» C. 3.5 | |
| 5. |
RBI has appointed whom as the Executive Director on July 5, 2016? |
| A. | Sudarshan Sen |
| B. | NS Vishwanathan |
| C. | MS Swaminathan |
| D. | None of the above |
| Answer» B. NS Vishwanathan | |
| 6. |
RBI removed a 7 year old restriction on fresh purchase of which state owned bank s shares by foreign investors? |
| A. | PNB |
| B. | SBI |
| C. | |
| D. | D. |
| Answer» B. SBI | |
| 7. |
RBI has set up an inter-regulatory working group to study issues relating to regulatory issues regarding financial technology and which other banking service in India? |
| A. | Telephone banking |
| B. | Mobile banking |
| C. | Digital banking |
| D. | None of the above |
| Answer» D. None of the above | |
| 8. |
RBI will be monitoring banks on issues pertaining to customer rights in which areas? |
| A. | Right to privacy |
| B. | Right to fair treatment and transparency |
| C. | Right to suitability |
| D. | All of the above |
| Answer» E. | |
| 9. |
Which among the following is incorrect among Moral Suasion: |
| A. | RBI may request commercial banks to not to give loans for unproductive purpose |
| B. | So that which may increases inflation |
| C. | Because it does not add to economic development |
| D. | None of These |
| Answer» E. | |
| 10. |
Find the wrong one: |
| A. | Repo means Sale and Repurchase Agreement |
| B. | Repo is a swap deal involving the immediate Sale of Securities and simultaneous purchase of those securities at a future date, at a predetermined price |
| C. | Repo rate helps commercial banks to acquire funds from RBI by selling securities and also agreeing to repurchase at a later date. |
| D. | None of These |
| Answer» E. | |
| 11. |
Credit Authorization Scheme was introduced in : |
| A. | November, 1965 |
| B. | December, 1965 |
| C. | September, 1965 |
| D. | None of These |
| Answer» B. December, 1965 | |
| 12. |
Every financial institution has to maintain a certain quantity of liquid assets with themselves at any point of time of their total time and demand liabilities. These assets have to be kept in non cash form such as G - secs precious metals, approved securities like bonds etc. The ratio of the liquid assets to time and demand liabilities is termed as _____: |
| A. | Statutory Liquidity Ratio |
| B. | Cash Reserve Ratio |
| C. | Reverse Repo |
| D. | None of These |
| Answer» B. Cash Reserve Ratio | |
| 13. |
In 1999 RBI introduced ILAF. ILAF stands for: |
| A. | Internal Liquidity Adjustment Facility |
| B. | Interim Liquidity Adjustment Facility |
| C. | Investing Liquidity Adjustment Facility |
| D. | None of These |
| Answer» C. Investing Liquidity Adjustment Facility | |
| 14. |
Which among the following is correct about Sterlization: |
| A. | Sterlization means re-cycling of foreign capital inflows to prevent appreciation of domestic currency and to check the inflationary impact of such capital |
| B. | Sterlization is carried out through open market operations. |
| C. | To reduce the hurdles for implementation of sterlization, RBI uses a variety of other measures to manage interest rates. |
| D. | All of the Above |
| Answer» E. | |
| 15. |
Cash Reserve Ratio increases the cash for ____: |
| A. | Lending |
| B. | Borrowing |
| C. | Mortgaging |
| D. | None of These |
| Answer» B. Borrowing | |
| 16. |
LAF stands for: |
| A. | Liquidity Adjustment Facility |
| B. | Liquidity Adjustment Finance |
| C. | Lending Adjustment Facility |
| D. | None of These |
| Answer» B. Liquidity Adjustment Finance | |
| 17. |
The RBI sells government securities to control the _______: |
| A. | Flow of Finance in banks |
| B. | Flow of Credit |
| C. | Flow of Governmental Securities |
| D. | None of These |
| Answer» C. Flow of Governmental Securities | |
| 18. |
The RBI is empowered to vary the CRR between: |
| A. | 2 % and 16% |
| B. | 3% and 15% |
| C. | 5% and 25% |
| D. | None of These |
| Answer» C. 5% and 25% | |
| 19. |
The Cash Reserve Ratio is an effective instrument of credit control. Under the RBI Act, 1934 every ______bank has to keep certain minimum cash reserves with RBI: |
| A. | Public Bank |
| B. | Commercial Bank |
| C. | Industrial and Agricultural Banks |
| D. | None of These |
| Answer» C. Industrial and Agricultural Banks | |
| 20. |
If RBI wants to increase the credit flow it buys ______: |
| A. | Government Securities |
| B. | Shares and Debentures |
| C. | Other Local and Short term securities |
| D. | None of These |
| Answer» B. Shares and Debentures | |
| 21. |
The monetary management regulates: |
| A. | Availability of Money and Credit only |
| B. | Cost of Money and Credit Only |
| C. | Use of Money and Credit Only |
| D. | All of the Above |
| Answer» E. | |
| 22. |
An open market operation is an instrument of monetary policy which involves buying or selling of ________from or to the public and banks: |
| A. | Bonds and Other local securities |
| B. | Debentures and Shares |
| C. | Government Securities |
| D. | None of These |
| Answer» D. None of These | |
| 23. |
Which of the following is correct: |
| A. | The Central Bank has the duty to see that legitimate credit requirements are met |
| B. | And at the same credit is not used for unproductive and speculative purposes. |
| C. | RBI rightly calls its credit policy as one of controlled expansion |
| D. | All of the Above |
| Answer» E. | |
| 24. |
The main objective of monetary policy in India is_______: |
| A. | Growth with Stability |
| B. | Reduce Poverty and Achieve Stability |
| C. | Overall Monetary Stability |
| D. | None of These |
| Answer» B. Reduce Poverty and Achieve Stability | |
| 25. |
Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls the supply of money, availability of bank credit and cost of money that is the rate of interest: |
| A. | Central Bank (RBI) |
| B. | SBI |
| C. | IBA |
| D. | None of These |
| Answer» B. SBI | |
| 26. |
_______controls the supply of money and bank credit: |
| A. | RBI |
| B. | Indian Banking Association |
| C. | SEBI |
| D. | None of These |
| Answer» B. Indian Banking Association | |
| 27. |
Restriction of Inventories and stock means: |
| A. | Central Monetary authority carries out this essential function of restricting the development of the economy and all social and economic class of people |
| B. | Ban on Huge amount of Inventories by Central Monetary Authority |
| C. | Both of Above |
| D. | None of These |
| Answer» B. Ban on Huge amount of Inventories by Central Monetary Authority | |
| 28. |
Price Stability implies promoting ______with considerable emphasis on price stability: |
| A. | Financial Development |
| B. | Economic Development |
| C. | Strategic Financial Development |
| D. | None of These |
| Answer» C. Strategic Financial Development | |
| 29. |
What was the first Narsimham Committee s recommendation regarding the SLR? |
| A. | to bring it down from 38.5% to 25% |
| B. | to bring it up from 38.5% to 45% |
| C. | to bring it down from 38.5% to 25% |
| D. | None of the above |
| Answer» D. None of the above | |
| 30. |
What is meant by Open Market Operations? |
| A. | Purchase and sale of the Government Securities by RBI |
| B. | Rationing of the credit allocated by commercial banks by RBI |
| C. | Request by the RBI to the commercial banks to take certain measures |
| D. | None of the above |
| Answer» B. Rationing of the credit allocated by commercial banks by RBI | |
| 31. |
What do we call the official interest rate at which RBI provides loans to the banking system? |
| A. | Reverse repo rate |
| B. | Bank rate |
| C. | SLR |
| D. | CRR |
| Answer» C. SLR | |
| 32. |
What do we call the funds that the banks keep with RBI as a portion of their Net Demand and Time Liabilities? |
| A. | Statutory Liquidity Ratio |
| B. | Cash Reserve Ratio |
| C. | Bank Rate |
| D. | Reverse Repo Rate |
| Answer» C. Bank Rate | |
| 33. |
What do we call the instruments of monetary policy which directly affect the quantity of money supply? |
| A. | Quantitative instruments |
| B. | Qualitative instruments |
| C. | Money instruments |
| D. | None of the above |
| Answer» B. Qualitative instruments | |
| 34. |
Which of these is a quantitative instrument of Monetary Policy? |
| A. | Repo rate |
| B. | CRR |
| C. | SLR |
| D. | All of the above |
| Answer» E. | |
| 35. |
Who is the chairperson of the Monetary Policy committee of India? |
| A. | Finance Minister |
| B. | Prime Minister |
| C. | RBI Governor |
| D. | Chief Economic Advisor |
| Answer» D. Chief Economic Advisor | |
| 36. |
What do we call the rate at which the Reserve Bank of India lends money to commercial banks? |
| A. | Repo rate |
| B. | Reverse repo rate |
| C. | CRR |
| D. | SLR |
| Answer» B. Reverse repo rate | |
| 37. |
Which of the following counts under SLR? |
| A. | Cash in Hand |
| B. | Gold owned by the bank |
| C. | Balance with RBI |
| D. | All of the above |
| Answer» E. | |
| 38. |
What happens when CRR is increased? |
| A. | It decreases money supply |
| B. | It increases demand for money |
| C. | It decreases inflation |
| D. | All of the above |
| Answer» E. | |
| 39. |
Who is the new ED of the RBI w.e.f. 2nd Jan 2016? |
| A. | Surekha Marandi |
| B. | US Paliwal |
| C. | G Mahalingam |
| D. | KK Vohra |
| Answer» B. US Paliwal | |
| 40. |
RBI has restricted Indian entities from making investments in non cooperative countries and territories as per _________ |
| A. | FATF |
| B. | FADF |
| C. | FACF |
| D. | None of the above |
| Answer» B. FADF | |
| 41. |
In Monetary Review on 8th Feb 2017, RBI has kept repo rate _________ |
| A. | Unchanged |
| B. | Changed to 7.25% |
| C. | Changed to 8.25% |
| D. | None of the above |
| Answer» B. Changed to 7.25% | |
| 42. |
Who has been appointed as director on the RBI central board? |
| A. | Ashok Gulati |
| B. | Rajiv Kumar |
| C. | Manish Sabharwal |
| D. | All of the above |
| Answer» E. | |
| 43. |
Who replaced R. Gandhi as Deputy Governor of RBI? |
| A. | BP Kanungo |
| B. | SS Mundra |
| C. | Viral V Acharya |
| D. | |
| Answer» B. SS Mundra | |
| 44. |
RBI will create polymer based currency notes of which denomination? |
| A. | INR 5 |
| B. | INR 10 |
| C. | INR 20 |
| D. | INR 25 |
| Answer» C. INR 20 | |
| 45. |
Who has been appointed part time chairman of Catholic Syrian Bank? |
| A. | TS Anantharaman |
| B. | TS Subramaniam |
| C. | TS Anantdev |
| D. | None of the above |
| Answer» B. TS Subramaniam | |
| 46. |
Which department will RBI open from April 3 to oversee breaches of rules and their violation? |
| A. | Enforcement department |
| B. | Grievances Redressal department |
| C. | Social welfare department |
| D. | Financial laws department |
| Answer» B. Grievances Redressal department | |
| 47. |
What is the value of the reverse repo rate, as per the first RBI bimonthly policy review of 2017-2018? |
| A. | 5.75% |
| B. | 5.25% |
| C. | 6% |
| D. | 6.25% |
| Answer» D. 6.25% | |
| 48. |
Who has been appointed RBI ED w.e.f April 3, 2017? |
| A. | Malvika Sanghvi |
| B. | Malvika Sinha |
| C. | Malvika Sen |
| D. | None of the above |
| Answer» C. Malvika Sen | |
| 49. |
RBI has asked commercial and cooperative banks on 25th August 2016 to provide loans to women SHG in rural areas at what percent per annum? |
| A. | 7 |
| B. | 8 |
| C. | 9 |
| D. | 10 |
| Answer» B. 8 | |
| 50. |
RBI has released the Monetary Policy on Oct 4th 2016. By how many basis points has it cut the repo rate? |
| A. | 15 |
| B. | 25 |
| C. | 35 |
| D. | 45 |
| Answer» C. 35 | |