Banking Financial Awareness · Economics

Banking Regulation and Monetary Policy

1,180 Questions

Banking regulation and monetary policy questions test your understanding of the Reserve Bank of India functions, regulatory frameworks, and monetary tools. Topics include KYC guidelines, repo rates, and foreign exchange reserves management. This section is crucial for candidates preparing for banking and financial awareness exams.

RBI monetary toolsKYC guidelinesInterest rate regulationsCurrency issuanceBanking business acts

Banking Regulation and Monetary Policy Questions

Multiple choice

As per the reports published in the newspapers Indian Rupee is now fully accepted in Asian countries like, Singapore, Hong Kong, Malaysia etc. What does it really mean?

  1. Anybody from Asian country can purchase Indian Rupee and keep it in his/her bank account in his/her country without any restrictions.
  2. Now people in these nations are not required to go for a double conversion first in dollar and then in rupee.
  3. People travelling European/Asian countries can make their payments in rupee anywhere without any problem.

  1. Only 1 is correct

  2. Only 2 is correct

  3. Only 3 is correct

  4. All 1, 2 and 3 are correct

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The acceptance of the Indian Rupee in certain Asian markets implies easier trade settlement and reduced transaction costs for travelers and businesses, as it eliminates the need for intermediate currency conversion into USD.

Multiple choice

A commemorative stamp marking the Platinum Jubilee of the Reserve Bank of India was released in 2010. Which of the following statements about the RBI is/are correct? I. The Reserve Bank of India was established on April 1, 1935 in Kolkata in accordance with the provisions of the Reserve Bank of India Act, 1934. II. The RBI was shifted from Kolkata to Mumbai before independence. III. The RBI was nationalised on 1 January 1949.

  1. I only

  2. I and II only

  3. II and III only

  4. III and I only

  5. I, II and III
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. Reserve Bank of India was nationalised on 1 Jan 1949. President of India, Pratibha Devisingh Patil released a commemorative postage stamp to mark the Platinum Jubilee of the Reserve Bank of India on January 16, 2010. The five-rupee stamp depicts the iconic New Delhi offices of the apex bank, which has the statues of the mythological Yaksha and Yakshini, designed by famous sculptor Ramkinkar Baij.

Multiple choice

Who issues one rupee notes in India?

  1. RBI

  2. SBI

  3. Planning Commission

  4. Govt. of India
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The one rupee notes are issued by Govt. of India. The other currency notes are issued by RBI.

Multiple choice

SLR refers to portion of deposit which   

  1. Commercial banks retain with RBI

  2. RBI retains with commercial banks

  3. RBI retains with itself

  4. Commercial banks retain with themselves
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statutory liquid ratios are the liquid assets maintained by a commercial bank with itself. (A) is CRR.

Multiple choice

Banking reforms were recommended by

  1. Narasimham Committee

  2. Khan Committee

  3. Verma Committee

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All these committees were formed to suggest banking reforms.