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 elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

The bank rate means ____________________________________.

  1. Rate of Interest charged by commercial banks from borrowers

  2. Rate of Interest at which commercial banks discounted bills of their borrowers

  3. Rate of interest allowed by commercial banks on their deposits

  4. Rate at which RBI purchases or re-discounts bills of exchange of commercial banks
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The bank rate is the official interest rate at which the central bank (RBI in India) provides loans or rediscounts bills of exchange to commercial banks.

Multiple choice civics scope and significance of political science introduction to political science meaning and importance of political science study of political science

Which committee was formulated to look into the matter of capital account convertibility in India?

  1. Narsimham commitee

  2. Tarapore commitee

  3. Tandon commitee

  4. Chore commitee

  5. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Tarapore Committee was specifically constituted by the Reserve Bank of India to suggest a roadmap for capital account convertibility in India.

Multiple choice civics subordinate courts lok adalats lok adalats and tribunals the judiciary-subordinate courts and lok adalats

Which of the following cases suited for Lok Adalat?

  1. Arrears of retirement benefits cases

  2. Banks unpaid loan cases

  3. Motor accident cases

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

Lok Adalat is a court designed to shorten the time taken for settling disputes especially in the cases like the partition of property and matrimonial cases. It also settles disputes like arrears of retirement benefits cases, banks unpaid loan cases, motor accident cases etc.

Multiple choice book keeping and accountancy company accounts - redemption of debentures debentures redemption methods of redemption of debentures accounting effects for redemption of debentures

No DRR (Debenture Redemption Reserve) is required in case of privately placed debentures.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the Companies Act and relevant rules, companies are not required to create a Debenture Redemption Reserve (DRR) for debentures that are privately placed.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

The term money held by public excludes money held by ________.

  1. RBI

  2. Commercial banks

  3. Central Government

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

Money held by the public is a measure of money supply in an economy. It excludes money held by the central bank (RBI), commercial banks, and the government, as these are considered money creators or issuers rather than the public.

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 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)

BSE also provides depository services through its _______ arm.

  1. Central Depository Services Ltd. (CDSL)

  2. National Securities Depository Limited (NSDL)

  3. NSE

  4. SEBI
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

BSE also provides depository services through its Cenrtral Depository Services Limited(CDSL) arm. CDSL helps to hold securities either in the certificated or uncertificated form. CDSL enabled book entry transfer of securities. CDSL can be defined as the second Indian securities depository.

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)

The Securities and Exchange Board of India was established by the Government of India _____.

  1. as a cooperative society

  2. as a banking authority

  3. as an interim administrative body

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Securities and Exchange Board of India was established by the Government of India as an interim administrative body. SEBI is established in order to protect the interests of the investors and provide safety for investment. SEBI performs certain functions in order to promote and develop activities of stock exchange and increase the business in stock exchange. It also helps to regulate the business in stock exchange. It has framed certain rules and regulations to regulate the intermediaries.

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 public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

Which of the following may be source/s of internal debt due to the nature of their operations?

  1. Reserve Bank of India

  2. Commercial and General Banks

  3. Through selling of Government Securities

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

Internal debt is raised within the country through various financial institutions and the sale of government securities.

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.