RBI Functions — Set 7
Banking · RBI के कार्य · Questions 61–70 of 80
As a 'Banker to the Government', the RBI performs which of the following?
Correct Answer: C. Managing the government's bank accounts
The RBI maintains the accounts of the Central and State governments. It handles their receipts and payments and provides temporary loans. This ensures the government's financial operations run smoothly.
The 'Lender of Last Resort' function is performed by the RBI for?
Correct Answer: B. Commercial Banks
The RBI provides emergency financial assistance to commercial banks facing liquidity problems. This prevents a lack of confidence in the banking system. It is a critical role in maintaining financial stability.
Who is the current Governor of the Reserve Bank of India (as of 2024)?
Correct Answer: D. Shaktikanta Das
Shaktikanta Das is the 25th Governor of the RBI. He was appointed in December 2018. He has played a key role in navigating the economy through global challenges.
What is the main purpose of the 'Cash Reserve Ratio' (CRR)?
Correct Answer: D. To regulate the liquidity in the banking system
CRR is used to control the amount of money banks can lend. By increasing CRR, the RBI reduces the liquidity available in the market. This is a common tool used to fight inflation.
Which rate is the rate at which the RBI lends money to commercial banks for a short period?
Correct Answer: D. Repo Rate
The Repo Rate is the benchmark interest rate at which the RBI lends money to banks. It is the most important tool of the Monetary Policy. A change in this rate affects all other interest rates.
The RBI manages the 'Foreign Exchange Reserves' of India. What does this include?
Correct Answer: A. Foreign currencies, Gold, and SDRs
India's foreign exchange reserves consist of foreign currencies like the Dollar, Gold, and Special Drawing Rights (SDRs). The RBI manages these to maintain the stability of the Rupee. These reserves are used during trade deficits.
In which city is the RBI's 'College of Agricultural Banking' located?
Correct Answer: D. Pune
The College of Agricultural Banking (CAB) is an RBI training institute located in Pune. it specializes in training for rural and agricultural finance. It helps bank officials understand rural credit needs.
The 'Statutory Liquidity Ratio' (SLR) is maintained by banks in the form of?
Correct Answer: D. Cash, Gold, or Government Securities with themselves
SLR is the minimum percentage of deposits that banks must keep in liquid assets. Banks keep this reserve with themselves to ensure they can meet sudden demands. It also creates a market for government securities.
The RBI's headquarters were shifted from Kolkata to which city in 1937?
Correct Answer: A. Mumbai
The RBI's headquarters was permanently moved to Mumbai in 1937. Mumbai is considered the financial capital of India. The central office manages the bank's national policy.
What happens when the RBI 'Increases' the Repo Rate?
Correct Answer: D. Borrowing for banks becomes expensive
Increasing the Repo Rate makes it costlier for banks to borrow from the RBI. Banks then pass this cost to customers by increasing loan interest rates. This is used to suck out liquidity and control high inflation.