Banking Financial Awareness · 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

Multiple choice civics growth of rural economy rural economy changing life: 1 meaning and importance of rural development

Which of the following is/are the recommendations of the Committee on Financial Inclusion chaired by Dr C Rangarajan?

A. Launching of a National Rural Financial Inclusion Plan (NRFIP) in mission mode.
B. Creation of two funds with NABARD-Financial Inclusion Promotion and Development Fund (FIPF) and Financial Inclusion Technology Fund (FITF).
C. Shifting of the rural branches of all nationalised banks under the direct control of NABARD as only NABARD has the expertise in disbursement of rural credit.

  1. Only (A)

  2. Only (B)

  3. Only (C)

  4. Both (A) and (B)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Rangarajan Committee recommended the National Rural Financial Inclusion Plan (NRFIP) and the creation of two specific funds (FIPF and FITF) under NABARD to promote financial inclusion. Option C is incorrect as the committee did not recommend shifting direct control of all rural bank branches to NABARD.

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

The EXIM Bank provides:

  1. Funded assistance to promote Indian exports

  2. Non-funded assistance to promote Indian exports

  3. Both (A) and (B)

  4. Soft loan facilities
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

EXIM bank (Exports Imports  bank of  India) provides as well as non financial assistance .Financial assistance is by provising them funds and advances for exports promotion, no financial assistance is by providing them information regarding the trends of the international market.

Multiple choice business economics and quantitative methods balance of payments exchange rate balance of payments and exchange rate balance of trade and balance of payments

For which of the following purpose Indian currency is fully convertible- select your answer, using the code given below :
1. For repatriation of remittances and trade purposes
2. Servicing of the foreign loans
3. Direct foreign investment
4. Indirect foreign investment

  1. 1 and 2

  2. 1,2 and 4

  3. 2,3 and 4

  4. 1,3 and 4
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Rupees is fully convertible in the cases of interest payment, remittances, grants, trade and indirect foreign investment (though, it belongs to the capital account).

Multiple choice business economics and quantitative methods balance of payments exchange rate balance of payments and exchange rate balance of trade and balance of payments

Dual exchange rate was introduced in _______.

  1. 1992-93

  2. 1989-90

  3. 1999-2000

  4. 1993-94
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the RBI "The Liberalised Exchange Rate Management System (LERMS) was put in place in March 1992 involving the dual exchange rate system in the interim period. The dual exchange rate system was replaced by a unified exchange rate system in March 1993".

Multiple choice commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

Direct supervision over depositories and mutual funds is undertaken by _______.

  1. NBFCs

  2. RBI

  3. SEBI

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SEBI (Securities and Exchange Board of India) is the regulatory body responsible for the oversight of the securities market, including depositories and mutual funds.

Multiple choice economics income-output determination public debt public debt main feature of tax

The Foreign Exchange Reserves of India consist of __________.

  1. Foreign Currency Assets held by RBI

  2. Gold Holdings of RBI

  3. Special Drawing Rights (SDRs)

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

Foreign exchange reserves of India Consists of Foreign currency assets held by RBI, gold holding of RBI, Special drawings Rights. Foreign exchange reserves of India are holdings of cash, bank deposits, bonds and other financial assets. 

Multiple choice economics sustainable development with equity liberalisation objectives of economic planning in india need for sustainable development introduction to social movements and its types social movements

What is an Indian Depository Receipt?

  1. A deposit account with a Public Sector Bank

  2. A depository account with any of the Depositories in India

  3. An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

  4. An instrument in the form of deposit receipt issued by Indian depositories
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An IDR is an instrument denominated in Indian Rupees in the form of a depositoryreceipt created by a Domestic Depository (custodian of securities registered with theSecurities and Exchange Board of India) against the underlying equity of issuingcompany to enable foreign companies to raise funds from the Indian securities Markets.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

What is the major source of funds for Land Development Banks (LDBs)?

  1. Issue of bonds and debentures.

  2. Assistance from commercial banks.

  3. Loans from RBI.

  4. All of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Issue of bonds and debentures is the major source of funds for Land Development Banks (LDBs).Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities.

Multiple choice social science agriculture sector rural credit role of agriculture sector green revolution

Central Land Development Banks operate at the ___________ level.

  1. district

  2. village

  3. national

  4. state
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Central Land Development Banks operate at the state level.Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities.

Multiple choice economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

To ease the credit availability requirements of start-ups the government and announced the ___________.

  1. Money back guarantee

  2. Indian Aspiration Fund

  3. Credit Guarantee Scheme

  4. MUDRA Scheme
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To ease the credit availability requirements of start-ups the government and announced the MUDRA Scheme. MUDRA Scheme helps to finance micro business enterprises of India. This scheme is known as Pradha Mantri Mudra Yojana.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Which of these agencies regulates Securities Market in India?

  1. RBI

  2. SEBI

  3. Stock Exchange

  4. Finance Ministry
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SEBI (Securities and Exchange Board of India) is the regulatory body for the securities market in India, established to protect investors and promote the development of the market.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Select the incorrect one/ones about short-term finance in India from the given list using the code given below:
1. It fulfills the GoI, corporate houses, financial institutions, bank and the SBI DFHI.
2. Banks have been made available the least number of instruments of the money market in India.

  1. Only 1

  2. Only 2

  3. 1 and 2

  4. Niti Aayog
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Both the statement are incorrect. If DFHI is not in the list, Statement 1 will become correct and similarly, money market of India makes maximum number of its instruments available to the banks (they are Call Money, Certificate of Deposit and Commercial Paper and the Repo).

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

The full form of FRBM Act 2003 is _______.

  1. Fiscal Regulation and Budget Management Act

  2. Fiscal Regulation and Banking Management Act

  3. Fiscal Responsibility and Budget Management Act

  4. Financial Responsibility and Budget Management Act
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.