GK question and answer on Indian Economy: Banking Sector in India

This set of 10 questions based on the Indian Economy contains questions on the “Banking Sector in India”. This set of quiz is made while considering the trends of the exams conducted in the past.

1. Which of the following bank has launched ‘iwatch’ Banking project?

(a) SBI

(b) ICICI

(c) HDFC

(d) PNB

Ans. c

Explanation: iwatch’ is a mobile app; available on the apple watch launched by the HDFC bank in April 2015.

2. Which of the following is not the function of the RBI?

(a) Banker’s Bank

(b) Controller of credit

(c) Custodian of Foreign Exchange Reserve

(d) Allotting money directly to farmers for agricultural development

Ans. d

Explanation: Allotting money to farmers for agricultural development is the responsibility of the NABARD.

3. Who issues one rupee notes in India?

(a) RBI

(b) Ministry of Finance

(c) Ministry of Corporate Affairs

(d) NABARD

Ans. b

Explanation: one rupee notes are printed by the Ministry of Finance while other notes are printed by the RBI.

4. When was RBI established?

(a) 1935

(b) 1949

(c) 1929

(d) 1914

Ans. a

Explanation: Reserve Bank of India was established in April, 1935 with a capital of 5 cr.

5. Which of the following sentence is not correct?

(a) RBI was nationalized on January 1, 1935.

(b) RBI’s head quarter is in Delhi

(c) RBI is the custodian of the foreign currency in India

(d) RBI has 4 Deputy Governors

Ans. b

Explanation: RBI’s headquarter is in Mumbai.

6. If a farmer want to take loan to purchase a tractor; which type of bank he should contact?

(a) Commercial banks

(b) RBI

(c) Regional Rural Bank

(d) NABARD

Ans. a

Explanation: Commercial banks and Regional Rural Bank

7. Now who decides the monetary policy of India?

(a) Reserve Bank of India

(b) Banking Association of India

(c) Monetary Policy Committee

(d) NITI Aayog

Ans. c

Explanation:  Monetary Policy Committee

8. At present how many public sector banks are working in India?

(a) 27

(b) 25

(c) 29

(d) 21

Ans. d

Explanation: There are 21 public sector banks are working in India.

9. Which of the following term is not related to banking sector?

(a) BASEL III

(b) Forex Reserve

(c) Statutory Liquidity Ratio

(d) Marginal Standing Facility

Ans. b

Explanation: Forex Reserve is the short form of Foreign Exchange Reserve which is the collection of foreign currency.

10. Which of the following term is not used in the Formation of Monetary Policy?

(a) Cash Reserve Ratio

(b) Repo Rate

(c) Bank Rate

(d) Blue chip

Ans. d

Explanation: Blue chip is not considered while deciding the monetary policy of the country. Blue chip is called that company which gives safe returns to investors.

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