Money and Banking

Which institution issues currency notes in India?
a) Ministry of Finance
b) SBI
c) RBI
d) NABARD
✅ c) RBI

Who controls the monetary policy in India?
a) NITI Aayog
b) Ministry of Finance
c) RBI
d) SEBI
✅ c) RBI

Which is the legal tender in India?
a) Gold coins
b) Paper currency
c) Credit cards
d) Shares
✅ b) Paper currency

The minimum denomination of coin legally accepted in India is:
a) 10 paise
b) 25 paise
c) 50 paise
d) ₹1
✅ c) 50 paise

Which is not a function of money?
a) Store of value
b) Medium of exchange
c) Source of income
d) Unit of account
✅ c) Source of income

Fiat money is:
a) Backed by gold
b) Accepted on government order
c) International currency
d) Used in barter system
✅ b) Accepted on government order

What does M1 in money supply include?
a) Currency + Demand deposits
b) Currency + Time deposits
c) Only currency
d) Bonds and shares
✅ a) Currency + Demand deposits

Who is the lender of last resort?
a) IMF
b) SBI
c) RBI
d) NABARD
✅ c) RBI

Which rate is used by RBI to lend short-term funds to banks?
a) CRR
b) Repo rate
c) Reverse repo rate
d) Bank rate
✅ b) Repo rate

Reverse repo rate is used to:
a) Control inflation
b) Provide liquidity
c) Absorb excess liquidity
d) Boost exports
✅ c) Absorb excess liquidity

What is CRR?
a) Cash held with public
b) Reserve ratio for savings
c) Cash Reserve Ratio with RBI
d) Consumer Rate Regulation
✅ c) Cash Reserve Ratio with RBI

When RBI increases CRR, it leads to:
a) More liquidity
b) Less liquidity
c) No effect
d) Higher inflation
✅ b) Less liquidity

Open Market Operations (OMO) refers to:
a) Selling of bank shares
b) Buying/selling govt securities by RBI
c) Money laundering
d) Increasing exports
✅ b) Buying/selling govt securities by RBI

Bank rate is:
a) Rate charged by RBI on long-term lending
b) Repo rate
c) Fixed deposit rate
d) Reverse repo rate
✅ a) Rate charged by RBI on long-term lending

Commercial banks in India are regulated by:
a) SEBI
b) RBI
c) Ministry of Finance
d) SBI
✅ b) RBI

Scheduled banks are listed under:
a) RBI Act, 1934
b) Banking Regulation Act, 1949
c) Companies Act, 2013
d) None of the above
✅ a) RBI Act, 1934

The apex bank for agriculture and rural development is:
a) RBI
b) SIDBI
c) NABARD
d) ICICI
✅ c) NABARD

What is a non-performing asset (NPA)?
a) Asset under litigation
b) Loan not repaid for 90 days or more
c) Assets sold off
d) Government bond
✅ b) Loan not repaid for 90 days or more

Digital payment interface developed by NPCI:
a) AEPS
b) NEFT
c) UPI
d) BHIM
✅ c) UPI

Which body regulates mutual funds and stock markets?
a) RBI
b) SEBI
c) IRDAI
d) Ministry of Finance
✅ b) SEBI

The full form of IFSC code is:
a) Indian Financial System Code
b) Indian Fund Service Code
c) Internal Finance Settlement Code
d) Investment Fund Security Code
✅ a) Indian Financial System Code

Which of these is not a function of RBI?
a) Issue currency
b) Banker to the government
c) Provide personal loans
d) Maintain foreign exchange
✅ c) Provide personal loans

In India, monetary policy is announced:
a) Monthly
b) Quarterly
c) Yearly
d) Once in 5 years
✅ b) Quarterly (MPC review)

Which bank is considered India's central bank?
a) SBI
b) HDFC
c) RBI
d) ICICI
✅ c) RBI

The currency printing press is managed by:
a) RBI
b) Government of India
c) Ministry of Commerce
d) Nationalised Banks
✅ a) RBI

What is the base year for WPI inflation (as of 2023)?
a) 2004–05
b) 2011–12
c) 2017–18
d) 2010–11
✅ b) 2011–12

Who manages foreign exchange reserves in India?
a) SEBI
b) RBI
c) Ministry of External Affairs
d) SBI
✅ b) RBI

What does RTGS stand for?
a) Real-Time Gross Settlement
b) Rapid Transaction Gateway System
c) Regular Transfer Gross Scheme
d) Reserve Transfer Gateway System
✅ a) Real-Time Gross Settlement

The headquarters of RBI is located in:
a) Delhi
b) Mumbai
c) Kolkata
d) Chennai
✅ b) Mumbai

Monetary policy committee (MPC) consists of how many members?
a) 5
b) 6
c) 7
d) 8
✅ b) 6

What is SLR?
a) Statutory Liquidity Ratio
b) Securities Lending Rate
c) Short-term Lending Rate
d) Strategic Loan Ratio
✅ a) Statutory Liquidity Ratio

SLR is maintained in:
a) Gold
b) Government securities
c) Cash and liquid assets
d) All of the above
✅ d) All of the above

The chairperson of MPC is:
a) RBI Governor
b) Finance Minister
c) SEBI Chairman
d) SBI Chairperson
✅ a) RBI Governor

Which body issues one-rupee notes and coins in India?
a) RBI
b) Ministry of Finance
c) SBI
d) NSO
✅ b) Ministry of Finance

Currency notes are issued under which system in India?
a) Gold standard
b) Proportional reserve system
c) Minimum reserve system
d) Full reserve system
✅ c) Minimum reserve system

What is the function of the Clearing House?
a) Issue loans
b) Maintain records
c) Settle interbank transactions
d) Allocate taxes
✅ c) Settle interbank transactions

In India, money supply is measured by:
a) SEBI
b) NITI Aayog
c) RBI
d) Finance Commission
✅ c) RBI

The currency notes in India are printed by:
a) SPMCIL
b) RBI
c) Ministry of Commerce
d) SEBI
✅ a) SPMCIL (Security Printing and Minting Corporation of India)

What is bank nationalization year in India?
a) 1955
b) 1965
c) 1969
d) 1972
✅ c) 1969

The largest commercial bank in India is:
a) RBI
b) HDFC
c) ICICI
d) SBI
✅ d) SBI

Which of the following is NOT a type of money?
a) Commodity money
b) Fiat money
c) Virtual money
d) Black money
✅ d) Black money

Plastic money refers to:
a) E-wallets
b) Credit and debit cards
c) Bonds
d) Cheques
✅ b) Credit and debit cards

The primary function of money is:
a) Create employment
b) Store black money
c) Medium of exchange
d) Build inflation
✅ c) Medium of exchange

The liquidity adjustment facility (LAF) is operated through:
a) CRR
b) SLR
c) Repo and Reverse Repo
d) OMO
✅ c) Repo and Reverse Repo

What is financial inclusion?
a) Credit only to farmers
b) Banking services to all sections
c) Digital payments in urban areas
d) Tax rebates
✅ b) Banking services to all sections

Which scheme promotes financial inclusion?
a) PMAY
b) Ujjwala Yojana
c) PM Jan Dhan Yojana
d) KUSUM
✅ c) PM Jan Dhan Yojana

Cheque truncation system helps in:
a) Faster cheque clearing
b) ATM security
c) UPI functioning
d) Insurance claims
✅ a) Faster cheque clearing

Which of the following is a development bank?
a) SBI
b) NABARD
c) HDFC
d) ICICI
✅ b) NABARD

E-RUPI is a:
a) Digital currency
b) UPI alternative
c) Voucher-based digital payment
d) Cryptocurrency
✅ c) Voucher-based digital payment

Which of the following affects money supply in the economy?
a) CRR changes
b) Repo rate
c) Government borrowing
d) All of the above
✅ d) All of the above