RBI & Monetary Policy

J&K Bank PO · General & Financial Awareness · 19 practice questions with answers and explanations: 8 Easy, 11 Medium, 0 Hard.

Sample questions

Sample Easy question 1

Where is the headquarters of the RBI?

  1. New Delhi
  2. Kolkata
  3. Chennai
  4. Mumbai
Show answer

Answer: D. The RBI's central office is in Mumbai.

Sample Easy question 2

Which authority issues currency notes in India (except the one-rupee note)?

  1. Reserve Bank of India
  2. SEBI
  3. State Bank of India
  4. Ministry of Finance
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Answer: A. The one-rupee note is issued by the Government of India; all other notes are issued by the RBI.

Sample Easy question 3

The RBI acts as the banker to the:

  1. Stock exchanges
  2. Insurance companies
  3. The general public
  4. Government and to other banks
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Answer: D. It is the banker to the government and the 'bankers' bank'.

Sample Medium question 4

Foreign exchange in India is regulated under which Act, administered by the RBI?

  1. Banking Regulation Act, 1949
  2. Foreign Exchange Management Act, 1999 (FEMA)
  3. Insurance Act, 1938
  4. Companies Act, 2013
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Answer: B. FEMA replaced the older FERA.

Sample Medium question 5

Which Act gives the RBI the power to regulate and supervise commercial banks?

  1. RBI Act, 1934
  2. Companies Act, 1956
  3. Banking Regulation Act, 1949
  4. Negotiable Instruments Act, 1881
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Answer: C. The Banking Regulation Act, 1949 governs banking companies.

Sample Medium question 6

The rate at which the RBI gives long-term loans to commercial banks, without needing government securities as in repo, is traditionally called the:

  1. Reverse repo rate
  2. Bank rate
  3. CRR
  4. Repo rate
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Answer: B. Bank rate is the rate at which the RBI lends to banks, generally for longer periods.

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