Test: Reserve Bank Of India - 1


30 Questions MCQ Test Crash Course of Macro Economics -Class 12 | Test: Reserve Bank Of India - 1


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Attempt Test: Reserve Bank Of India - 1 | 30 questions in 30 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Crash Course of Macro Economics -Class 12 for CA Foundation Exam | Download free PDF with solutions
QUESTION: 1

Which of these is a Quantitative Method of Credit control?

Solution:
QUESTION: 2

Monitory policy is announced in India by _________

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QUESTION: 3

The ‘lender of last resort’ means. 

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QUESTION: 4

When the bank rate increases the demand for loans _______:

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QUESTION: 5

Monetary policy includes:

Solution:

The Monetary Policy regulates the supply of money and the cost and availability of credit in the economy. It deals with both the lending and borrowing rates of interest for commercial banks. The Monetary Policy aims to maintain price stability, full employment and economic growth.

QUESTION: 6

Which of the following is not a qualitative method of credit control?

Solution:

Qualitative or selective measures are those which are directed towards the particular use of credit and not its total volume in other words qualitative of selective measures are generally meant to regulate credit for specific purposes here except changes in cash reserve ratio all other are are qualitative measures as they are subject to regulate money supply for particular purpose while CRR is one of the quantitative measures which is meant for controlling the credit it the entire banking system hence option B is the correct answer

QUESTION: 7

 Which of the following methods cannot be used as an instrument of quantitative control of credit by the central Bank?

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QUESTION: 8

Which system of issue of currency note is followed by RBI?

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QUESTION: 9

 The Reserve Bank of India issues all currency notes except:

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QUESTION: 10

The RBI can decrease the bank credit by:

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QUESTION: 11

Ten rupee note has been issued by ______:

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QUESTION: 12

 Who is the custodian of national reserves of international currency?

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QUESTION: 13

__________ is the Banker’s Bank in India:

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QUESTION: 14

Who is the custodian of National reserves of international currency?

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QUESTION: 15

Rs. 10 note is issued by:

Solution:

 

QUESTION: 16

Which of the following is not a quantitative measure of credit control?

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QUESTION: 17

 RBI was Nationalized in :

Solution:

Reserve Bank of India(RBI) which is an apex bank that controls and regulates the entire banking system of India was nationalized in 1949. It is the sole agency of issuing currency notes and controls the supply of money in the economy through its monetary policy. 

QUESTION: 18

Which of the following is not a selective credit control method :

Solution:

The reserve requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank.

QUESTION: 19

The Reserve Bank of India was nationalized in the year:

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QUESTION: 20

 The CRR is determined in India by:

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QUESTION: 21

What is Bank rate?

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QUESTION: 22

 The rate at which discounting of bills of first class is done by RBI is called

Solution:

A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans. Managing the bank rate is a method by which central banks affect economic activity. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.

QUESTION: 23

Which of the following is not qualitative credit control measure of the RBI?

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QUESTION: 24

The portion of total deposit which a commercial bank has to keep with itself in liquid assets is known as 

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QUESTION: 25

_________ control affect indiscriminately all sectors of the economy.

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QUESTION: 26

Which of the following is instrument of credit control?

Solution:

The different instruments of credit control used by the Reserve Bank of India are Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), the Bank Rate Policy, Selective Credit Control (SCC), Open Market Operations (OMOs).

QUESTION: 27

Central Bank of a country does not deal with ________.

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QUESTION: 28

 Identify the selective instruments used by RBI for Controlling Credit.

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QUESTION: 29

 Bank Rate is also known as _______.

Solution:

Bank rate, also referred to as the discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. Whenever a bank has a shortage of funds, they can typically borrow from the central bank based on the monetary policy of the country.

QUESTION: 30

Monetary Policy in India is regulated by :

Solution:

The Reserve Bank of India (RBI) uses the monetary policy to regulate liquidity in a manner that balances inflation and help in GDP growth and development.

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