Economics quiz, which are covered in this chapter, relate to the topic, Reserve Bank of India (RBI). Economics quiz contains 20 questions. Answers to Economics quiz are available after clicking on the answer.
1._______ is the Banker’s Bank in India :
(a) SBI
(b) PNB
(c) RBI
(d) OBC
Answer
Answer: (c) RBI
2.Which of the following is not a qualitative credit control measure of the RBI ?
(a) Capital Rationing
(b) Moral Suasion
(c) SLR
(d) Margin requirement
Answer
Answer: (c) SLR
3.RBI was Nationalized in :
(a) 1959
(b) 1947
(c) 1945
(d) 1949
Answer
Answer: (d) 1949
4.When the bank rate increases the demand for loans______:
(a) Reduces
(b) Increases marginally
(c) Remains unchanged
(d) Increases drastically
Answer
Answer: (A) Reduces
5.Which of the following is not a selective credit control method :
(a) Rationing of credit
(b) Direct Action
(c) Changes in margin requirements
(d) Reserve Requirement
Answer
Answer: (d) Reserve Requirement
Economics Quiz – Reserve Bank of India (RBI)
6.The Reserve Bank of India issues all currency notes except:
(a) 500 Rupee note
(b) 100 Rupee note
(c) 10 Rupee note
(d) 1 Rupee note
Answer
Answer: (d) 1 rupee note
7.Buying and selling of securities or bills in open market is called:
(a) Cash Reserve Ratio
(b) Open Market operation
(c) Bank rate policy
(d) None of these
Answer
Answer: (b) Open Market operation
8.Which of the following methods cannot be used as an instrument of quantitative control of credit by the central Bank?
(a) Bank Rate policy
(b) Open Market operations
(c) Taxation
(d) Variations in reserve ratio
Answer
Answer: (c) Taxation
9.CRR according to October 2007, was:
(a) 7.5%
(b) 25%
(c) 30%
(d) 2%
Answer
Answer: (A) 7.5%
10.Which of the following is the monetary authority of a country?
(a) The government of the country
(b) The Banking system of the country
(c) The Central Bank of the country
(d) All of these
Answer
Answer: (c) The Central Bank of the country
Economics Quiz – Reserve Bank of India (RBI)
11.The CRR is determined in India by:
(a) Ministry of finance
(b) State Bank of India
(c) Reserve Bank of India
(d) Parliament
Answer
Answer: (c) Reserve Bank of India
12.An increase in money supply _______.in a nations Economy will decrease the following.
(a) Open market purchase by the nations Central Bank
(b) A deserve in the bank rate
(c) A decrease in the reserve ratio
(d) A decrease in the margin requirement.
Answer
Answer: (a) Open market purchase by the nations Central Bank
13.Identify the selective instruments used by RBI for Controlling Credit.
(a) Margin Requirement
(b) Issue of directives
(c) Regulation of consumer credit
(d) All of the above
Answer
Answer: (d) All of the above
14.Which system of note issue prevails in India at present?
(a) Minimum Reserve System
(b) Proportionate system
(c) Fixed fiduciancy system,
(d) None of the above
Answer
Answer: (A) Minimum Reserve System
15.Bank Rate is also known as ________.
(a) Discount Rate
(b) REPO Rate
(c) Reserve Repo Rate
(d) Lending Rate
Answer
Answer: (A) Discount Rate
Economics Quiz – Reserve Bank of India (RBI)
16.Which of the following is a tool of monetary policy that a nation’s Central Bank could use to stabilize the economy during an inflationary period?
(a) Selling Government Securities
(b) Lowering banks reserve requirements
(c) Lowering bank discount rate
(d) None of the above.
Answer
Answer: (A) Selling Government Securities
17.Central Bank of a country does not deal with ______.
(a) State Government
(b) Public
(c) Central Government
(d) Commercial Banks
Answer
Answer: (b) Public
18._______ is the rate at which the Central Bank discounts the bill of Commercial Banks.
(a) Bank rate
(b) Interest rate
(c) Growth rate
(d) None of the above.
Answer
Answer: (A) Bank rate
19.________ control affect indiscriminately all sectors of the economy.
(a) Selective control
(b) Quantitative
(c) Margin Requirements
(d) None of the above.
Answer
Answer: (b) Quantitative
20.Which one of the following is not an objective of RBI?
(a) Economic Stability
(b) Issue of currency
(c) Advancing loans to Public
(d) Maintenance of Foreign Exchange Reserves
Answer
Answer: (c) Advancing loans to Public