Banking Awareness Prayaas Test Sheet 1
Questions and Answers
- 1.
When was Reserve Bank of India (RBI) Nationalized?
- A.
1935
- B.
1937
- C.
1949
- D.
1950
Correct Answer
C. 1949Explanation
The Reserve Bank of India (RBI) was nationalized in 1949. This means that the government took control and ownership of the central bank. Prior to this, the RBI was privately owned. Nationalization of the RBI was a significant step towards centralizing and regulating the banking system in India. It allowed the government to have greater control over monetary policy and financial stability in the country.Rate this question:
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- 2.
Who is the current RBI Governor?
- A.
Lakshmi Kant Jha
- B.
Manmohan Singh
- C.
Urjit Patel
- D.
Shaktikanta Das
Correct Answer
D. Shaktikanta DasExplanation
Shaktikanta Das is the current RBI Governor. He was appointed as the 25th Governor of the Reserve Bank of India in December 2018. Prior to his appointment, he served as the Secretary of the Department of Economic Affairs in the Ministry of Finance. As the RBI Governor, Das is responsible for overseeing the monetary policy of the country and maintaining financial stability.Rate this question:
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- 3.
The section 19 of the Reserve Bank of India Act, 1934 states that the Reserve Bank of India has been prohibited from?
- A.
Making loans or advances
- B.
Drawing or accepting bills payable otherwise than on demand
- C.
Allowing interest on deposits or current accounts
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Section 19 of the Reserve Bank of India Act, 1934 prohibits the Reserve Bank of India from making loans or advances, drawing or accepting bills payable otherwise than on demand, and allowing interest on deposits or current accounts. This means that the Reserve Bank of India is not allowed to engage in these activities as they are restricted by law. Therefore, the correct answer is "all of the above".Rate this question:
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- 4.
In terms of Section 24 of the Reserve Bank of India Act, 1934, the Reserve Bank of India may issue bank notes for the maximum denomination of?
- A.
500 rupees
- B.
5000 rupees
- C.
10000 rupees
- D.
1000 rupees
Correct Answer
C. 10000 rupeesExplanation
According to Section 24 of the Reserve Bank of India Act, 1934, the Reserve Bank of India is authorized to issue bank notes for the maximum denomination of 10,000 rupees.Rate this question:
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- 5.
As per newspaper reports, inflation in India and China were at a very high level. In such a situation the Central Banks of these countries are required to follow?
- A.
A more liberal credit policy
- B.
Create an atmosphere of easy liquidity in the market
- C.
A very tight credit policy
- D.
None of the above
Correct Answer
C. A very tight credit policyExplanation
Inflation in India and China being at a high level indicates an increase in the general price level of goods and services. To combat this, the Central Banks of these countries are required to follow a very tight credit policy. This means that they will implement measures to reduce the availability of credit in the market, such as increasing interest rates and tightening lending requirements. By doing so, they aim to decrease the money supply and curb inflationary pressures.Rate this question:
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- 6.
Reserve Bank of India is the lender of the last resort to scheduled commercial banks because
- A.
The parties can approach R B I when their limits are exhausted
- B.
They are not able to get loans from other banks
- C.
R B I meets directly or indirectly all their reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policy
- D.
None of the above
Correct Answer
C. R B I meets directly or indirectly all their reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policyExplanation
The correct answer is that the Reserve Bank of India (RBI) meets directly or indirectly all the reasonable demands for financial accommodation from scheduled commercial banks, subject to certain terms and conditions which constitute its discount rate policy. This means that when banks are in need of additional funds and are unable to obtain loans from other banks, they can approach the RBI as a lender of last resort. The RBI provides financial accommodation to banks, but this assistance is subject to specific terms and conditions set by the RBI, including its discount rate policy.Rate this question:
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- 7.
Who introduced the Banking Ombudsman Scheme ?
- A.
RBI
- B.
SIDBI
- C.
SBI
- D.
ICICI
Correct Answer
A. RBIExplanation
The correct answer is RBI. The Banking Ombudsman Scheme was introduced by the Reserve Bank of India (RBI). This scheme was established to provide a platform for customers to file complaints against deficiencies in banking services. The RBI acts as the regulatory authority for banks in India and plays a crucial role in ensuring the smooth functioning of the banking sector. By introducing the Banking Ombudsman Scheme, the RBI aims to protect the rights and interests of bank customers and promote transparency and accountability in the banking system.Rate this question:
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- 8.
The Imperial Bank of India, after its nationalization came to be known as
- A.
State Bank of India
- B.
Reserve Bank of India
- C.
United Bank of India
- D.
Indian Overseas Bank
Correct Answer
B. Reserve Bank of IndiaExplanation
After its nationalization, the Imperial Bank of India came to be known as the Reserve Bank of India. The Reserve Bank of India is the central banking institution of India, responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system. It functions as the banker's bank and the lender of last resort for commercial banks. It also plays a crucial role in maintaining financial stability and promoting economic growth in the country.Rate this question:
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- 9.
Which of the following banks was inaugurated by Mahatma Gandhi in 1919?
- A.
Bank of Maharashtra
- B.
Bank of Baroda
- C.
State Bank of Saurashtra
- D.
Union Bank of India
Correct Answer
D. Union Bank of IndiaExplanation
Mahatma Gandhi inaugurated the Union Bank of India in 1919.Rate this question:
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- 10.
Which of the following is the apex institution which handles refinance for agriculture and rural development in India?
- A.
RBI
- B.
SIDBI
- C.
NABARD
- D.
SEBI
Correct Answer
C. NABARDExplanation
NABARD, which stands for National Bank for Agriculture and Rural Development, is the apex institution that handles refinance for agriculture and rural development in India. It provides financial support to various institutions involved in agriculture and rural development, such as commercial banks, regional rural banks, and cooperative banks. NABARD plays a crucial role in promoting sustainable and inclusive growth in the rural economy by providing refinance facilities, conducting research, and implementing development programs.Rate this question:
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