Questions
RBI’s open market operation transactions are carried out with a view to regulate
- liquidity in the economy
- prices of essential commodities
- inflation
- borrowing power of the <font face="Arial" size="2">banks</font>
- All of the above
The Reserve Bank of India has decided to help banks as a temporary measure, by providing additional liquidity support under LAF. What is the full form of LAF?
- Loan Adjustment Fund
- Liquidity Adjustment Facility
- Long Awaited Funds
- Loan Against Funds
- None of these
Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, mean
- sale or purchase of government securities
- issuance of different types of bonds
- auction of gold
- to make available direct finance to <font face="Arial" size="2">borrowers</font>
- None of these
The stance of RBI monetary policy is for
- controlling inflation with adequate liquidity for growth
- improving credit quality of banks
- strengthening credit delivery mechanism
- supporting investment demand in the economy
- All of the above
Whenever RBl does some open market operation transactions, its main motive is to regulate
- inflation
- liquidity in the economy
- borrowing powers of the banks
- flow of foreign direct investments
- None of these
RBI issues directives to the banks of India under provision of
- Banking Regulation Act, 1949
- RBI Act
- Essential Commodities Act
- PMLA Act, 2002
- None of these
Which of the following regulates mutual funds in India?
- RBI
- SEBI
- Stock exchanges
- RBI and SEBI
The Reserve Bank of India has issued guidelines to banks on Pillar 2 of Basel II framework. Pillar 2 deals with which of the following?
(A) Better human resource management
(B) Adequate capital to support risks
(C) Better profitability with minimum number of employees
- Only (A)
- Only (B)
- Only (C)
- (A), (B) and (C)
- None of these
Which of the following tools is used by RBI for selective credit control?
- It advises banks to lend against certain commodities.
- It advises banks to recall the loans for advances against certain commodities.
- It advises banks to charge higher rate of interest for advance against certain commodities.
- It discourages certain kinds of lending by assigning higher risk weights to the loans it deems undesirable.
- None of these
Which of the following rates is not decided by RBI?
- Cash Reserve Ratio
- Repo Rate
- Reverse Repo Rate
- Bank Rate
- Prime Lending Rate
At present (2015), the contribution of Government of India and Reserve Bank of India in the capital of NABARD is in the ratio
- 75 : 25
- 60 : 40
- 49 : 51
- 99 : 01
- None of these
If Reserve Bank of India (RBI) increases repo rate, rate of interest of the loans offered by the bank ________.
- decreases
- becomes zero
- becomes 100%
- increases
- None of these
The first foreign bank that has been permitted by Reserve Bank of India to handle Currency Chest in India is
- Standard Chartered Bank
- China Trust Commercial Bank
- Hongkong & Shanghai Banking Corporation
- ABN Amro Bank
- Citi Bank
Who has the sole right to issue paper currency in India?
- Ministry of Finance
- Planning Commission
- Finance Commission
- Reserve Bank of India
- None of these
Under provisions of which of the following acts, does the Reserve Bank of India have the power to regulate, supervise and control the banking sector?
- RBI Act
- Banking Regulation Act
- Negotiable Instrument Act
- RBI and Banking Regulation Act
- None of these