RBI & Policy — Set 10
Economics · RBI और नीति · Questions 91–100 of 120
Which committee recommended the nationalization of RBI?
Correct Answer: D. There was no specific committee
The correct answer is 'There was no specific committee'. The nationalization was a direct policy decision of the newly independent Indian government. It was implemented through the RBI (Transfer to Public Ownership) Act, 1948. This ensured that the central bank served the national development goals.
Who was the first Indian Governor of RBI?
Correct Answer: A. C.D. Deshmukh
Sir Chintaman Dwarkanath Deshmukh was the first Indian to be appointed as Governor in 1943. He played a key role during the transition to independence and nationalization. He was a member of the Indian Civil Service.
What is the full form of SLR?
Correct Answer: B. Statutory Liquidity Ratio
The correct answer is 'Statutory Liquidity Ratio'. SLR is the mandatory portion of deposits that banks must maintain in liquid assets like gold or government securities. It is a tool used by the RBI to control credit growth and ensure bank solvency. The RBI sets the maximum and minimum limits for SLR.
The 'Lender of Last Resort' function is performed by?
Correct Answer: B. Reserve Bank of India
This function means that the RBI provides liquidity to banks when they have no other source of funds. It prevents a local liquidity problem from becoming a large-scale financial panic. It is a core responsibility of any central bank.
Which of the following is NOT a subsidiary of RBI?
Correct Answer: C. NHB
The National Housing Bank (NHB) was once a subsidiary, but the RBI sold its entire stake to the government in 2019. DICGC, BRBNMPL, and ReBIT are still subsidiaries of the RBI. This separation helps in reducing conflicts of interest in regulation.
The logo of RBI features which animal?
Correct Answer: C. Tiger
The RBI logo features a Tiger. Originally, it was a lion, but it was changed to a tiger to give it a more Indian identity. The tiger is positioned in front of a palm tree.
In which year did the RBI start its operations?
Correct Answer: B. 1935
The RBI commenced its operations on April 1, 1935. It took over the management of government accounts and note issuance from the Imperial Bank of India. Its first year was spent organizing its regional offices.
Who was the Governor of RBI during the 1991 economic reforms?
Correct Answer: D. S. Venkitaramanan
S. Venkitaramanan was the Governor from 1990 to 1992, during India's balance of payments crisis. He managed the gold pledging and initial reform measures. He was succeeded by C. Rangarajan.
The Cash Reserve Ratio (CRR) is maintained in the form of?
Correct Answer: A. Cash with RBI
CRR must be kept strictly in the form of cash with the Reserve Bank. Banks do not earn any interest on these deposits. It is used as a direct tool to control the liquidity available for lending.
Which of the following describes the function 'Banker to the Government'?
Correct Answer: A. Managing public debt
As banker to the government, the RBI manages the public debt of the central and state governments. It also manages their cash balances and provides short-term loans through WMA. It acts as an advisor to the government on economic matters.