banking, security market & insurance section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 6

When the RBI wants to inject liquidity into the economy, it may adopt the following :

1. Buy the government securities from the banks.
2. Enter into reverse repo operations
3. Raise cash Reserve Ratio
4. Reduce SLR.

a) 1, 2 and 4 only

b) 1 and 4 only

c) 1 only

d) 1, 2, 3 and 4

Question : 7

Paper currency first started in India in

a) 1601

b) 1542

c) 1861

d) 1880

Question : 8 [IAS 2017]

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

1. It decides the RBI’s benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.

a) 3 only

b) 1 and 2 only

c) 1 only

d) 2 and 3 only

Question : 9

The one rupee note bears the signature of the

a) Finance Minister

b) Governor, RBI

c) Secretary, Ministry of Finance

d) None of these

Question : 10

According to the Reserve Bank of India’s guidelines to banks, customers can change up to 20 pieces of soiled currency notes over the counter, free of charge up to a maximum value of

a) Rs.25,000

b) Rs.5,000

c) Rs.28,000

d) Rs.15,000