Banking Financial Awareness ยท Economics
Banking Regulation and Monetary Policy
1,219 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
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issue of currency
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control of credit
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monitoring measures
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all of these
D
Correct answer
Explanation
All of these are functions of RBI.
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RBI
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SBI
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Planning Commission
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Finance Ministry
A
Correct answer
Explanation
RBI is the banker of banks and lender of last resort.
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Narasimham Committee
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Khan Committee
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Verma Committee
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All of these
D
Correct answer
Explanation
All these committees were formed to suggest banking reforms.
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Reserve bank of India
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Government of India
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SEBI
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Stock Exchanges
C
Correct answer
Explanation
The Securities and Exchange Board of India (SEBI) is the statutory regulatory body established to regulate the securities market in India. It oversees mutual funds, stock exchanges, and other market intermediaries to protect investors.
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November 2006
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October 1981
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June 1995
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January 1998
C
Correct answer
Explanation
The Banking Ombudsman Scheme was first introduced by the Reserve Bank of India in 1995.
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Reserve Bank of India
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State Bank of India
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Local Courts
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Ombuds Men
D
Correct answer
Explanation
The Banking Ombudsman is a quasi-judicial authority created by the RBI to resolve customer complaints against banks.
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State Bank of India
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Reserve Bank of India
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NABARD
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Commercial Banks
B
Correct answer
Explanation
The Reserve Bank of India (RBI) is the central bank of India and is responsible for the regulation of money circulation and monetary policy.
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State Bank of India
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Reserve Bank of India
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NABARD
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Nationalised Banks
B
Correct answer
Explanation
The Reserve Bank of India acts as the banker to the government, managing its accounts and public debt.
A
Correct answer
Explanation
Statutory Liquidity Ratio (SLR) is the minimum percentage of deposits that a commercial bank must maintain in the form of liquid cash, gold, or other securities. Cash in hand is a valid component.
A
Correct answer
Explanation
The Right to Information Act 2005 applies to all public authorities, including public sector banks, which are considered public authorities under the Act.
A
Correct answer
Explanation
A scheduled bank is defined as a bank that is listed in the Second Schedule of the Reserve Bank of India Act, 1934, meeting specific capital and reserve requirements.
B
Correct answer
Explanation
The Annual Policy Statement (now Monetary Policy Statement) and the Credit Policy are distinct in their scope and timing, though they are both tools used by the RBI to manage the economy.
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Forex Rate
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Bank Rate
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Interest rates
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CRR
D
Correct answer
Explanation
The Cash Reserve Ratio (CRR) is the percentage of total deposits that banks must keep as cash reserves with the RBI. Increasing CRR reduces the money available for lending, thus reducing liquidity.
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cash in hand
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gold owned by the bank
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balance with RBI in excess of the ones under Sec 42 of RBI Act
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all of the above
D
Correct answer
Explanation
Statutory Liquidity Ratio (SLR) is maintained by banks in the form of cash, gold, or approved securities. All the listed items are valid components of SLR.
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direct and indirect taxes
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flow of agriculture credit
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reforms in securities market
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Banking sector
B
Correct answer
Explanation
The Vyas Committee was established to examine and make recommendations regarding the flow of credit to the agricultural sector in India.