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

Question 1

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

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

Answer 1

Re. 1

Question 2

RBI has withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise in which year ?

A)2010
B)2011
C)2012
D)2013

Answer 2

2011

Question 3

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

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

Answer 3

Increase in Repo Rate

Question 4

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

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

Question 5

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

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

Question 6

Which of the followong Governors of RBI also served as the Finance Minister of India ?

A)Pranav Mukherjee
B)Amitabha Ghosh
C)Sir Benegal Rama Rao
D)Dr. Manmohan Singh

Question 7

Which of the following statements is/are not true ?

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 8

Which is not a function of RBI ?

A)Holding cash reserves of all commercial banks and make available financial accommodation to them.
B)Assuming responsibility of all banking operations of the government.
C)Assuming the responsibility of the statistical analysis of data related to macro economy of India .
D)Assuming the responsibility to meet directly or indirectly all reasonable demands for the accommodation.

Question 9

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

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

Question 10

Ways and Means advanced by RBI refers to

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

Question 11

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

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

Question 12

Decreasing percentage of statutory liquidity ratio by RBI

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.

Question 13

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

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

Question 14

The RBI's function of Banker to Government implies

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 15

Which of the following is a commercial bank?

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

Question 16

Which one of the following is near money?

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

Question 17

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

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

Question 18

The liabilities of a bank are

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

Question 19

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

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

Question 20

Rupee is a coin

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

Question 21

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

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

Question 22

Convertible money means

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

Question 23

Commercial banks create

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