Reserve Bank of India

Q.

Is PNB a private bank?

Q.

What are official reserve transactions explain their importance in the balance of payments?

Q. Which is the highest denomination note which the RBI can print?

1. 500
2. 2, 000
3. 5, 000
4. 10, 000

Q.

Look at a 10 rupee note. What is written on top? Can you explain this statement?

Q. What is the rate of interest at which commercial banks borrow money from the RBI known as?

1. Reverse repo rate
2. Interest rate
3. Repo rate
4. Borrowing rate

Q. Banks in India hold a small percentage of their deposits as cash. This cash deposit is known as .

1. cash deposit
2. demand deposit
3. reserve
4. deposit

Q.

Who issues a treasury bill?

1. Any private sector bank

2. All of the options

3. Reserve Bank of India

4. Any nationalised bank

Q. How many central banks are there in India?

1. 1
2. 2
3. 3
4. 4

Q. Which bank keeps control over the activities of all commercial banks in India?

1. Reserve Bank of India
2. World Bank
3. International Monetary Fund
4. NABARD

Q. A commercial bank X borrows from its country's central bank. What is the rate of interest called in this case?

1. Interest rate
2. Loan rate
3. Repo rate
4. Reverse repo rate

Q. I am the apex banking institution. I control and regulate the entire banking system and money supply of the country. All the commercial banks have to follow the rules I set. I am the banker of all the banks and the government. Who am I?

1. NABARD
2. RBI
3. Central bank
4. SHGs

Q. The RBI prints all currency notes except the five rupee denomination notes and its subsidiary coins.

1. False
2. True

Q. How does the Reserve Bank of India control inflation?

1. Checks people’s ability to spend
2. Regulates the money supply in the economy
3. Shuts down banks that do not perform well
4. Sells banks to private entities

Q. Which of these are not the functions of the RBI?

1. Lending money to the public
2. Lending money to the government
3. Lending money to commercial banks
4. Taking deposits from the public

Q. The designing and minting of coins in various denominations is the responsibility of the . However, they are circulated only through the .

1. RBI
2. Government of India
3. Finance Ministry
4. State Government

Q. When the RBI __________ the repo rate, the commercial banks in turn ___________ the rate of interest on loans for the public.

1. increases, increase
2. decreases, increase
3. increases, decrease
4. decreases, decrease

Q. Explain some of the ways in which the RBI regulates the banks.

Q. Which of the following tasks could the RBI do in 1935?

1. The RBI had the right to change the rules and regulations of the Constitution.
2. The RBI had the right to print money/issue currency notes.
3. The RBI had the right to pass bills on its own.
4. The RBI could design the currency notes of India.

Q. Who supervises the entire system of creation and circulation of money on behalf of the government?

1. Ministry of Finance
2. Supreme Court
3. Defence Ministry
4. Reserve Bank of India

Q. Peter Printing Press printed Indian rupee notes for the people of its village. Comment on the validity of these notes.

1. The notes can be exchanged for the legal Indian rupee notes.
2. The notes can serve as money for the village.
3. The notes can be used as currency throughout the country.
4. The notes will be considered fake.

Q. Which position does the RBI hold in our country?

1. Bank of India
2. NABARD
3. Central Bank
4. Ministry of Finance

Q. Who issues guidelines for banks to examine their operations and to maintain people's trust?

1. Government of India
2. State Bank of India
3. Reserve Bank of India
4. Supreme Court of India