RBI & Policy — Set 2
Economics · RBI और नीति · Questions 11–20 of 120
The requirement for banks to maintain a certain percentage of their assets in liquid forms like gold or government securities is called?
Correct Answer: D. SLR
The Statutory Liquidity Ratio (SLR) ensures that banks maintain a portion of their net demand and time liabilities in liquid assets. This provides a safety cushion for depositors and promotes stability. Banks earn interest on assets kept under SLR, unlike CRR.
Which department of the RBI is responsible for the design and security features of banknotes?
Correct Answer: C. Currency Management Department
The Department of Currency Management handles the core function of issuing and managing notes and coins. It coordinates with printing presses and mints to ensure sufficient supply. Modern Indian currency features advanced security elements like color-shifting ink.
The Reserve Bank of India manages the foreign exchange of India under which act?
Correct Answer: B. FEMA, 1999
The Foreign Exchange Management Act (FEMA), 1999, replaced FERA to simplify foreign trade and payments. The RBI acts as the regulator and custodian of India's foreign exchange reserves. This function helps maintain the external value of the Indian Rupee.
Which organization's logo features a tiger and a palm tree?
Correct Answer: B. Reserve Bank of India
The official emblem of the Reserve Bank of India consists of a Tiger and a Palm tree. It was originally derived from the seal of the East India Company. The tiger represents strength and the palm tree represents prosperity.
How many Deputy Governors can the Reserve Bank of India have at maximum?
Correct Answer: B. Four
According to the RBI Act, the central bank can have a maximum of four Deputy Governors. They are appointed by the Government of India for specific terms. They oversee various specialized departments within the organization.
Which monetary policy tool involves the buying and selling of government securities in the open market?
Correct Answer: D. Open Market Operations
Open Market Operations (OMO) are used by the RBI to regulate the volume of money in the economy. When the RBI buys securities, it injects liquidity; when it sells, it absorbs liquidity. It is a flexible and effective indirect monetary tool.
What is the standard duration of the RBI's accounting year currently?
Correct Answer: C. April to March
The RBI aligned its accounting year with the government's fiscal year (April to March) starting from 2021. Previously, the RBI followed a July to June cycle for many decades. This alignment helps in better coordination of financial data and budgeting.
Which of the following is the 'Lender of Last Resort' in India?
Correct Answer: C. RBI
As the central bank, the RBI provides emergency liquidity to commercial banks facing financial crises. This role prevents bank failures and maintains public confidence in the banking system. It ensures that temporary liquidity shortages do not lead to systemic collapses.
The Monetary Policy Committee (MPC) of the RBI has how many members?
Correct Answer: D. Six
The MPC consists of six members, with three from the RBI and three external members appointed by the government. The Governor of the RBI acts as the ex-officio chairperson. It meets at least four times a year to decide the benchmark interest rates.
Which of the following denominations is NOT currently printed by the RBI?
Correct Answer: D. ₹1
The ₹1 note is issued by the Ministry of Finance and bears the signature of the Finance Secretary. The RBI issues all other currency notes, which carry the Governor's signature. Currently, the ₹2,000 note is also being withdrawn from circulation.