The Reserve Bank of India was established on ___ by an act passed by the parliament.

True or False: The Hilton Young Commission recommended the establishment of a central bank in India.

False. The commission recommended it in 1926. The RBI Act came in 1934, and RBI started in 1935.

The composition of the RBI's Board includes a governor and ___ deputy governors appointed by the central government.

Not more than four

Fill in the blank: The RBI acts as a ___ between the government and commercial banks.

Liaison

Which committee consists of the governor, deputy governors, and other members present during meetings?

The committee of central board

True or False: The capital of the RBI is set at 10 Crore.

False. The capital of the RBI should be 5 Crore.

What are the main objectives of the monetary policy conducted by the RBI?

Regulation of monetary growth, maintenance of price stability, ensuring adequate expansion of credit, and strengthening the banking system.

Fill in the blank: The current Cash Reserve Ratio (CRR) maintained by the RBI is ___%.

3%

What is the bank rate, and how does it influence credit control?

The bank rate is the official interest rate at which the RBI lends to commercial banks; increasing it helps control credit and inflation.

True or False: The RBI has the authority to issue bills of exchange and promissory notes.

True.

What is the purpose of the Statutory Liquidity Ratio (SLR) in the context of commercial banks?

SLR refers to the portion of deposits that banks must keep as liquid assets to ensure solvency and stability.

Fill in the blank: The RBI is known as the ___ of the last resort.

Lender

What measures does the RBI use to control credit selectively?

Qualitative measures such as margin requirements and consumer credit regulations.

What is the role of local boards within the structure of the RBI?

Local boards consist of members nominated to ensure regional representation and facilitate local banking needs.