Reserve Bank of India is the supreme monetary authority of India. It issues guidelines for all commercial banks in the country. In this article; a set of 10 questions based on the Reserve Bank of India is given. For the convenience of the aspirants, we have given answers and explanation of the questions.
1. On which commission’s recommendations; Reserve Bank of India was established?
(a) Chamberlain Commission
(b) Hilton Young Commission
(c) Keynes Commission
(d) None of the above
Explanation: RBI was established on 1 April 1935, based on recommendations of Hilton Young Commission.
2. Which of the following is not the work of RBI?
(a) Bank of the banks
(b) Credit controller
(c) Custodian of foreign currency
(d) Allocating funds directly to the farmers for agricultural development
Explanation: RBI allocates funds to NABARD for agricultural development. NABARD further allocates funds to farmers for agricultural development through rural banks and commercial banks.
3. Who mints the coins in India?
(a) Ministry of Finance
(b) Reserve Bank of India
(c) Prime Minister's Office
(d) Commerce and Industry Ministry
Explanation: In India, the RBI is responsible for the printing of currency notes, while the work of printing one rupee note and all the minting of coins is done by the Finance Ministry.
4. When was R.B.I. nationalised?
Explanation: The Reserve Bank of India was established on April 1, 1935 with a capital of 5 cr. rupees and nationalised in 1 January 1949.
5. Who was the first governor of Reserve Bank of India from Indian origin?
(a) Osborne Smith
(b) C. Rajagopalachari
(c) L. K. Jha
(d) C.D. Deshmukh
Explanation: The first Indian-origin governor of the Reserve Bank of India was C.D. Deshmukh while very first Governor of RBI was Osborne Smith, an Englishman.
5. How long does the accounting year of the Reserve Bank of India come from?
(a) 1st July to 1st June
(b) 1st April to 30th March
(c) 1st July to 30th June
(d) January 1 to December 31
Explanation: The accounting year of the Reserve Bank of India is between 1 July and 30 June, while the country's financial year is between 1 April and 30 March.
10. Which of the following words is not used in Monetary Policy?
(a) Cash reserve ratio
(b) Repo Rate
(c) Bank rate
(d) Blue chip
Explanation: The term blue chip is not related to monetary policy. Blue chip is an adjective given to a company which provides assured profit.