Reserve Bank of India RBI Multiple Choice Questions
1. The Reserve Bank of India (RBI) commenced its operations on _________ during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
A.1 April 1935
B. 1 April 1936
C. 1 April 1937
D. 1 April 1938
Answer: A
2. RBI is headquarterd at which city?
A.Mumbai
B.New Delhi
C.Pune
D.Gurgaon
Answer: A
3. Choose the correct statements related to the organisational structure of RBI?
The RBI is entrusted with the 21-member Central Board of Directors:
1.the Governor
2.4 Deputy Governors
3.2 Finance Ministry representatives
4.10 government-nominated directors
5. 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi
A.1,2,3 and 4
B.1,2,3 and 5
C.1,4 and 5
D.all are correct
Answer: D
4. RBI has how many regional offices?
A.22
B.21
C.20
D.19
Answer: A
5. The RBI was established on the recommendation of which committee?
A.Hilton Young Commission Committee
B.Osborne Smith committee
C.George Yule committee
D.Lord Matthew committee
Answer: A
6. Choose the correct statements-
1.1st Governor of RBI was Sir Osborne Smith
2.2nd Governor of RBI was James Taylor
3.3rd governor of RBI (1st Indian Governor of RBI) was C.D. Deshmukh
A.1 and 2
B.2 and 3
C.1 and 3
D.all are correct
Answer: D
7. When was RBI nationalised?
A.January 1,1949
B.January 1,1950
C.January 1,1955
D.January 1,1956
Answer: A
8. The RBI issued currency for the first time in January 1938 when it issued currency of ________with the photo of George VI on it.
A.Rs.5
B.Rs.10
C.Rs.1
D.Rs.20
Answer: A
9. Choose the correct statements –
1.Denominations of Coins and Currency is decided by the Government of India
2.But the number of coins and currency note is decided by the RBI.
A.only 1
B.only 2
C.both 1 and 2
D.neither 1 nor 2
Answer: C
10. The financial year of the RBI starts from _________
A.July 1 – June 30
B.August 1 – July 31
C.January 1 – December 31
D.April 1 – March 31
Answer: A
11. Choose the correct statements regarding the functions of RBI-RBI is –
1.Regulator of Bank and Development Authority
2.Regulator of NBFC
3.Lender of Last Resort
4.Banker’s Bank
5.Regulator of Open Market Operations
A.1,2,3 and 4
B.1,2,3 and 5
C.2,3,4 and 5
D.all are correct
Answer: D
12. The RBI prints all the currency notes except the ________currency note
A.one rupee
B.two rupee
C.five rupee
D.ten rupee
Answer: A
13. 15 languages are printed on the backside of the currency note printed by RBI and the note has total ______ languages
A.21
B.20
C.17
D.18
Answer: C
14. The four printing press of Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) that print currency are located in-
1. Mysore
2.Salboni (West Bengal)
3.Dewas (MP)
4.Nasik
A.1 and 2
B.1,3 and 4
C.2 and 4
D.all are correct
Answer: D
15. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) is one of the subsidiaries of the RBI and prints currency note on behalf of the RBI. It was established on February 3 _______
A.1995
B.1996
C.1990
D.1998
Answer: A
16. Coins are minted by the __________ according to the Coinage Act,1906 and Coinage Act,2011
A.Government of India
B.RBI
C.Both of the above
D.by respective banks
Answer: A
17. Security Printing and Minting Corporation of India Limited (SPMCIL) is an Indian government-owned corporation  established on January 13 _______ that mints coins on behalf of the Government of the India.
A.2006
B.2007
C.2008
D.2009
Answer: A
18. The minting units of Security Printing and Minting Corporation of India Limited (SPMCIL) are located at-
1.Mumbai
2.Noida
3.Hyderabad
4.Kolkata
A.1 and 2
B.1, 3 and 4
C.2,3 and 4
D.all are correct
Answer: D
19. Coins are made up of _______
A.stainless steel
B.iron
C.copper
D.aluminium
Answer: A
20. _______ note is called currency note and is printed by the Government of India
A.Rs.1
B.Rs.5
C.Rs.10
D.Rs.2
Answer: A
21. Who signs on Rs. 1 note?
A.Finance Secretary
B.RBI Governor
C.Finance Minister
D.Prime Minister
Answer: A
22. Who gave the Rupee symbol?
A.Venkat Subramaniam
B.C. Mukherjee
C.Rajeev Shukla
D.Uday Kumar
Answer: D
23.RBI was Nationalized in :
A. 1959
B. 1947
C. 1945
D. 1949
Answer: D. 1949
24.When the bank rate increases the demand for loans______:
A. Reduces
B. Increases marginally
C. Remains unchanged
D. Increases drastically
Answer: A. Reduces
25.Which of the following is not a selective credit control method :
A. Rationing of credit
B. Direct Action
C. Changes in margin requirements
D. Reserve Requirement
Answer: D. Reserve Requirement
Economics Quiz – Reserve Bank of India (RBI)
26.The Reserve Bank of India issues all currency notes except:
A. 500 Rupee note
B. 100 Rupee note
C. 10 Rupee note
D. 1 Rupee note
Answer: D. 1 rupee note
27.Buying and selling of securities or bills in open market is called:
A. Cash Reserve Ratio
B. Open Market operation
C. Bank rate policy
D. None of these
Answer: B. Open Market operation
28.Which of the following methods cannot be used as an instrument of quantitative control of credit by the central Bank?
A. Bank Rate policy
B. Open Market operations
C. Taxation
D. Variations in reserve ratio
Answer: C. Taxation
29. CRR according to October 2007, was:
A. 7.5%
B. 25%
C. 30%
D. 2%
Answer: A. 7.5%
30.Which of the following is the monetary authority of a country?
A. The government of the country
B. The Banking system of the country
C. The Central Bank of the country
D. All of these
Answer: C. The Central Bank of the country
31. The CRR is determined in India by:
A. Ministry of finance
B. State Bank of India
C. Reserve Bank of India
D. Parliament
Answer: C. Reserve Bank of India
32. An increase in money supply _______.in a nations Economy will decrease the following.
A. Open market purchase by the nations Central Bank
B. A deserve in the bank rate
C. A decrease in the reserve ratio
D. A decrease in the margin requirement.
Answer: A. Open market purchase by the nations Central Bank
33. Identify the selective instruments used by RBI for Controlling Credit.
A. Margin Requirement
B. Issue of directives
C. Regulation of consumer credit
D. All of the above
Answer: D. All of the above
34. Which system of note issue prevails in India at present?
A. Minimum Reserve System
B. Proportionate system
C. Fixed fiduciancy system,
D. None of the above
Answer: A. Minimum Reserve System
35. Bank Rate is also known as ________.
A. Discount Rate
B. REPO Rate
C. Reserve Repo Rate
D. Lending Rate
Answer: A. Discount Rate
36. Which of the following is a tool of monetary policy that a nation’s Central Bank could use to stabilize the economy during an inflationary period?
A. Selling Government Securities
B. Lowering banks reserve requirements
C. Lowering bank discount rate
D. None of the above.
Answer: A. Selling Government Securities
37. Central Bank of a country does not deal with ______.
A. State Government
B. Public
C. Central Government
D. Commercial Banks
Answer: B. Public
38. _______ is the rate at which the Central Bank discounts the bill of Commercial Banks.
A. Bank rate
B. Interest rate
C. Growth rate
D. None of the above.
Answer: A. Bank rate
39. ________ control affect indiscriminately all sectors of the economy.
A. Selective control
B. Quantitative
C. Margin Requirements
D. None of the above.
Answer: B. Quantitative
40. Which one of the following is not an objective of RBI?
A. Economic Stability
B. Issue of currency
C. Advancing loans to Public
D. Maintenance of Foreign Exchange Reserves
Answer: C. Advancing loans to Public
41. _______ is the Banker’s Bank in India :
A. SBI
B. PNB
C. RBI
D. OBC
Answer: C. RBI
42. Which of the following is not a qualitative credit control measure of the RBI ?
A. Capital Rationing
B. Moral Suasion
C. SLR
D. Margin requirement
Answer: C. SLR
43. How long does the accounting year of the Reserve Bank of India come from?
A. 1st July to 1st June
B. 1st April to 30th March
C. 1st July to 30th June
D. January 1 to December 31
Answer: 1st July to 30th June
44. Which of the following words is not used in Monetary Policy?
A. Cash reserve ratio
B. Repo Rate
C. Bank rate
D. Blue chip
Answer: Blue chip
45. Which of the following public sector banks has the largest number of branches in foreign countries?
A. Bank of India
B. Bank of Baroda
C. Punjab National Bank
D. Corporation Bank
Answer: Bank of Baroda
46. After State Bank of India, which of the following banks has the largest number of offices?
A. Punjab National Bank
B. Bank of India
C. Andhra Bank
D. Canara Bank
Answer: Punjab National Bank
47. Which of the following terms is used in banking field?
A. Interest rate swap
B. Input devices
C. Sedimentary
D. Zero Hour
Answer: Interest rate swap
48. Regional Rural Banks are sponsored by
A. Nationalised Commercial Bank
B. Reserve Bank of India
C. State Bank of India
D. Government of India
Answer: Nationalised Commercial Bank
49. What does M in M-Banking Facility being offered by banks to their customers, stand for?
A. Money
B. Marginal
C. Message
D. Mobile Phone
Answer: Mobile Phone
50. With which of following types of loans are teaser rates related?
A. Home loans
B. Personal loans
C. Auto loans
D. Reverse mortgage loans
Answer: Home loans
51. Expand the term EMI as used in banking/finance sector?
A. Easy Monthly Instalment
B. Equal Monthly Investment
C. Equated Monthly Instalment
D. Equated Mortgage Investment
Answer: Equated Monthly Instalment
52. Bank rate is decided by which of the following?
A. Reserve Bank of India
B. Government Of India
C. State Bank of India
D. Securities and Exchange Board of India
Answer: Reserve Bank of India
53. What are teaser loan rates charged by banks?
A. Rate of interest which is competitively changed in relation to other banks
B. Floating rate of interest charged by banks
C. Low rate of interest in the initial period which goes up subsequently
D. Higher rate of interest in the initial period which goes down subsequently
Answer: Low rate of interest in the initial period which goes up subsequently
54. Which of the following rates are reviewed by the RBI at the time of periodical review of the policy?
1. Bank rate
2. Repo rate
3. Savings bank rate
A. Only 1
B. Only 2
C. Both 1 and 2
D. All the three
Answer: All the three
55. The only merger of two public sector banks took place between –
A. Bank of India and New Bank of India
B. Punjab National Bank and New Bank of India
C. Allahabad Bank and United Bank of India
D. Punjab National Bank and Bank of Rajasthan
Answer: Punjab National Bank and New Bank of India
56. Which of the following banks was inaugurated by Mahatma Gandhi in 1919?
A. Bank of Maharashtra
B. Bank of Baroda
C. State Bank of Saurashtra
D. Union Bank of India
Answer: Union Bank of India
57. Which of the following is/are true about the Sub-Prime Crisis? 1) It is a mortgage crisis referring to credit default by the borrowers. 2) Sub-Prime borrowers were those borrowers who were rated low and were high risk borrowers. 3) This crisis originated because of negligence in credit rating of the borrowers.
A. Only 1
B. Only 2
C. Only 3
D. All 1, 2, and 3
Answer: All 1, 2, and 3
58. How many banks were in second phase of nationalisation?
A. 4
B. 5
C. 6
D. 7
Answer: 6
59. Who will act as the banker to the Government of India?
A. State Bank of India
B. Reserve Bank of India
C. NABARD
D. Nationalised Banks
Answer: Reserve Bank of India
60. Who was first governor of Reserve Bank of India?
A. K. A. Narasimham
B. V. K. Malhotra
C. A. K. Vadia
D. A. B. A Smith
Answer: A. B. A Smith