Tag: economics

Questions Related to economics

RBI was introduced as a shareholders bank on _________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. April 1935

  2. May 1940

  3. June 1969

  4. April 1947

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Correct Option: A

Head quarter of RBI permanently shifted to _______ in 1937.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Kolkata

  2. Delhi

  3. Chennai

  4. Mumbai

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Correct Option: D

Which of these terms are/is appropriate for RBI?

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Banker's Bank

  2. Banker to the Government

  3. Both

  4. None

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Correct Option: C

Exchange Control and Management is done by __________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. RBI

  2. As per Defence of India Act

  3. SBI

  4. IDBI

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Correct Option: A

RBI was established on the recommendation of ________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Hilton Young Commission 

  2. Simon Commission

  3. Chandra Commission

  4. LK Jha Commission

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Correct Option: A

RBI was nationalized in _____.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. June 1947

  2. Jan 1949

  3. March 1954

  4. April 1936

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Correct Option: B
Explanation:

On January 1949, Reserve Bank of India(RBI) which is an apex bank that regulates and controls the entire banking system of India was nationalized. It is the sole agency of note issuing and controls the supply of money in the economy. It is also the government's bank and banker's bank as it acts an agent, guide and banker to government and the commercial banks. 

RBI can very CRR between _________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. $5 \ to \ 15\%$

  2. $3 \ to \ 15\%$

  3. $5 \ to \ 12\%$

  4. $4 \ to \ 10\%$

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Correct Option: B
Explanation:

Cash Reserves Ratio (CRR) refers to the proportion of total deposits of the commercial banks which they must keep as reserves with the central bank in the form of cash. Cash reserve ratio is determined by central bank so that they can control the amount of credit creation of the commercial banks at the time of inflation or deflation in the economy. By the order of the parliament, Reserve Bank of India(RBI) can vary the cash reserve ratio between 3 to 15% of the total deposits of the commercial banks. 

Project where imported capital goods are required, have automatic clearance if the value of imported capital goods required is ________ of the total valise plant and machinery up to __________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. Less than 25% minimum of Rs. 2 crores

  2. Less than 25% maximum of Rs. 2 crores

  3. More than 5% minimum of Rs. 2 cores

  4. More than 25% minimum of Rs. 2 cores

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Correct Option: B
Explanation:

Project where imported capital goods are required automatic clearance if the value of imported capital goods required is less than 25% of the total value of plant and machinery up to maximum of Rs. 2 crores.

Reverse Repo transaction means ________.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. sale of securities by the holder to the investor with the agreement to purchase them at a predetermined rate and date

  2. sale of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date

  3. sale of securities by the holder to the investor with the agreement to purchase them at a prevailing rate and date

  4. sale of securities by the holder to the investor with the agreement to purchase them at market driven rate

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Correct Option: B

Banking Regulation (Amendment) Act, 1962, empowers the RBI to enhance SLR to _______.

instruments of monetary policy and the reserve bank of india money and banking economics

  1. $40\%$

  2. $38\%$

  3. $30\%$

  4. $33\%$

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Correct Option: A