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

The term public means ________.

  1. household, firm and local authorities

  2. non-Banking Financial Institution, Non-Departmental PSU

  3. reserve of foreign banks, Government and International Monetary fund

  4. all the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In the context of public finance and macroeconomics, the term 'public' is broad and encompasses the government, various public sector entities, and institutions that operate within the public sphere.

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

In India, deficit can be financed by _________.

  1. borrowing from the RBI

  2. borrowing from the commercial banks

  3. issue of new currency

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

Deficit financing can be achieved through various means, including borrowing from the central bank (RBI), borrowing from commercial banks, or issuing new currency.

Multiple choice economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

Money Supply in India can be increased if 

    1. RBI puts more paper money for circulation
    2. The commercial banks expand their credit operations
    3. The central Govt. gives more grants to the states
    4. The Govt. of

    1. 1, 2 and 3

    2. 2, 3 and 4

    3. 1, 3 and 4

    4. 1, 2 and 4
    Reveal answer Fill a bubble to check yourself
    D Correct answer
    Explanation

    Money supply increases when the RBI prints more money, banks expand credit, or the government spends more (often financed by borrowing). The fourth point is incomplete in the prompt, but based on standard economic theory, 1, 2, and 4 are the primary drivers of money supply expansion.

    Multiple choice elements of accounts introduction to gst fundamentals of gst tax journal

    The power to issue order for arrest will be vested upon?

    1. Commissioner of CGST/SGST

    2. Joint Commissioner of CGST/SGST

    3. Deputy Commissioner/Assistant Commissioner of CGST/SGST

    4. Any of the Above
    Reveal answer Fill a bubble to check yourself
    A Correct answer
    Explanation

    The power to issue an order for arrest under the GST Act is vested in the Commissioner of CGST or SGST.

    Multiple choice economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

    The one rupee note and coins are issued by _____________.

    1. RBI (Central Bank)

    2. Commercial Bank

    3. Ministry of Finance

    4. Central Government
    Reveal answer Fill a bubble to check yourself
    C Correct answer
    Explanation

    Reserve bank of India has the sole right to issue currency notes of various denominations except one rupee notes under Section 22 of Reserve bank of India Act. The one rupee note and coins are issued by ministry of finance and it bears the signature of Finance Secretary.

    Multiple choice economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

    All of the following is function of money except __________.

    1. to provide durability

    2. to be portable

    3. to be divisible

    4. None of the above
    Reveal answer Fill a bubble to check yourself
    A Correct answer
    Explanation

    The primary functions of money are medium of exchange, measure of value, store of value, and standard of deferred payment. Durability is a characteristic or property of money, not a function itself.

    Multiple choice economics theories of distribution functions of money value, nature and functions of money liquidity preference and profit

    As per RBI's new classification, which of the following measures of Money Stock includes Time Deposits with Banks?

    1. M1

    2. M2

    3. M3

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

    M3 is defined as M1 plus time deposits. M2 is defined as M1 plus savings deposits with post office savings banks. Since the question asks for measures including time deposits, both M2 and M3 are often associated with broader definitions, though M3 is the primary one.

    Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

    Which of the following does not relate to the Banking Sector Reforms in 1991?

    1. Introduction of Derivative Products

    2. Restriction of credit for purchase of consumer durables

    3. Liberalisation of principles governing Dividend Payments

    4. Emphasis on transparency
    Reveal answer Fill a bubble to check yourself
    B Correct answer
    Explanation

    Prior to 1991, credit purchases was not allowed in the consumer market but after the coming of new economic policies credit purchase on consumer durables were allowed as there was high competition in the market after the coming of foreign merchandise.  

    Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

    As part of Economic Reforms in 1991, Financial Sector Reforms relates to :

    1. Banking Sector

    2. Capital Market Sector

    3. Insurance Sector

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

    Financial sector reforms relates to reforms in all such sectors where finance was a major and prominent factor which included all the three sector i.e. banking, capital market, and insurance. 

    Multiple choice book keeping and accountancy accounting equation meaning, objectives and need of adjustments need for adjustments accounting equations and transactions

    Committee, launched the process of reforms of financial system in India __________________.

    1. Gadgil committee

    2. Nariman committee

    3. Narasimham committee

    4. khanna Committee
    Reveal answer Fill a bubble to check yourself
    C Correct answer
    Explanation

    The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. It focussed on issues like size of banks and capital adequacy ratio among other things.

    Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

    The Reserve Bank of India was established in the year _________.

    1. 1947

    2. 1951

    3. 1935

    4. 1969
    Reveal answer Fill a bubble to check yourself
    C Correct answer
    Explanation

    The Reserve Bank of India was established on 1st Apr,1935 Kolkata. 

    The Reserve Bank of India is India's central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India

    Multiple choice social science food security in india need for nregs rural development and employment guarantee scheme food security and nutrition

    A short-term loan at least interest rate was made available to the farmers through _____________.

    1. Kisan Credit Card Yojna

    2. Krishak Udhyami Loan Yojana

    3. Unified Package Insurance Scheme

    4. None of these
    Reveal answer Fill a bubble to check yourself
    A Correct answer
    Explanation

    Kisan Credit Card Yojna was formulated to provide short term loans to farmers for agricultural needs.The loan was provided at subsidized interest rates by the government if the borrower maintained a good credit history. An additional 2% subsidy was provided if the borrower managed a sound record during the term of the loan.