RBI Functions — Set 2
Banking · RBI के कार्य · Questions 11–20 of 80
What is the primary objective of the RBI's 'Open Market Operations' (OMO)?
Correct Answer: C. Managing liquidity in the economy
Open Market Operations involve the buying and selling of government securities by the RBI in the open market. Selling securities absorbs excess liquidity, while buying securities injects money into the system. It is a direct quantitative tool for credit control.
The 'Monetary Policy Committee' (MPC) of the RBI is headed by whom?
Correct Answer: C. Governor of RBI
The Governor of the RBI is the ex-officio Chairperson of the Monetary Policy Committee. The MPC consists of six members and is responsible for fixing the benchmark interest rate (Repo Rate). This committee was established to bring more transparency to policy decisions.
The RBI acts as a banker and debt manager to which of the following entities?
Correct Answer: C. Both Central and State Governments
The RBI serves as a banker to both the Central and State Governments of India. It manages their public debt, handles their receipts and payments, and provides temporary advances. This function helps the government manage its fiscal operations smoothly.
Which symbol is featured on the official seal of the Reserve Bank of India?
Correct Answer: D. Tiger and Palm Tree
The RBI seal features a Tiger and a Palm Tree. Originally, the seal featured a Lion and a Palm Tree, but it was changed to the Tiger to reflect the national animal. This seal is used on all official RBI documents and publications.
The RBI's function of 'Controller of Credit' aims to achieve which of the following?
Correct Answer: D. Price stability and economic growth
The RBI controls credit to ensure that the money supply remains consistent with the needs of the economy. This balance helps in controlling inflation while supporting industrial and agricultural growth. It uses tools like Repo rate and Reserve ratios to achieve this.
What does 'CRR' stand for in the context of RBI functions?
Correct Answer: C. Cash Reserve Ratio
CRR or Cash Reserve Ratio is the specific percentage of total deposits that commercial banks must keep with the RBI in cash. The RBI does not pay any interest on these reserves. Changing the CRR is a powerful tool to control the lending capacity of banks.
Under the 'Clean Note Policy', the RBI aims to?
Correct Answer: D. Withdraw soiled and mutilated notes from circulation
The Clean Note Policy was introduced to provide good quality currency notes to the public. Under this policy, banks are instructed to withdraw torn or defaced notes and replace them with fresh ones. This helps in maintaining the integrity and life of the currency in circulation.
The RBI publishes the 'Financial Stability Report' (FSR) how many times a year?
Correct Answer: B. Twice a year (Bi-annually)
The correct answer is 'Twice a year (Bi-annually)'. The Financial Stability Report is a bi-annual publication that assesses the health of India's financial system. It looks at potential risks to the stability of the banking and non-banking sectors. The report reflects the collective assessment of the Sub-Committee of the FSDC.
Which of the following is the 'Benchmark Interest Rate' used by the RBI to signal its policy stance?
Correct Answer: B. Repo Rate
The Repo Rate is the main policy rate at which the RBI lends short-term money to banks against securities. It serves as the benchmark for all other interest rates in the economy. An increase in the Repo rate usually makes loans more expensive.
The 'Statutory Liquidity Ratio' (SLR) can be maintained by banks in the form of?
Correct Answer: D. Cash, Gold, and Unencumbered Government Securities
SLR is the portion of NDTL that banks must maintain in liquid assets like cash, gold, or government bonds. Unlike CRR, SLR is kept by the banks themselves, not with the RBI. This ensures that banks have a safety net of liquid assets to meet sudden demands.