Chapter 10: Reserve Bank of India — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 10: Reserve Bank of India with a free chapter-wise online MCQ test.
This chapter covers: Exploring central banking this chapter details the origin history structure and monetary functions of the Reserve Bank of India. Students study credit control currency issue and fi....
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Chapter 10: Reserve Bank of India — Important Questions & Answers
When was the Reserve Bank of India established?
- A. 1 April 1935
- B. 15 August 1947
- C. 26 January 1950
- D. 1 January 1949
Answer: A. 1 April 1935
The Reserve Bank of India was established on 1 April 1935 under the Reserve Bank of India Act, 1934.
The Reserve Bank of India was established on 1 April 1935 under the Reserve Bank of India Act, 1934.
Which Act governs the functioning of the Reserve Bank of India?
- A. Companies Act, 2013
- B. Reserve Bank of India Act, 1934
- C. Banking Regulation Act, 1949
- D. Negotiable Instruments Act, 1881
Answer: B. Reserve Bank of India Act, 1934
The RBI was constituted and is governed by the Reserve Bank of India Act, 1934.
The RBI was constituted and is governed by the Reserve Bank of India Act, 1934.
The RBI is known as the banker's bank because it:
- A. Lends money only to farmers
- B. Provides banking services to other banks
- C. Accepts deposits from the public only
- D. Issues shares to the public
Answer: B. Provides banking services to other banks
The RBI acts as the banker to other banks by maintaining their reserves and providing funds when needed.
The RBI acts as the banker to other banks by maintaining their reserves and providing funds when needed.
Which statement best explains the currency-issuing function of the RBI?
- A. It prints all coins and notes in India
- B. It issues currency notes through the Department of Currency Management
- C. It issues only coins and not notes
- D. Private banks can issue notes under RBI permission
Answer: B. It issues currency notes through the Department of Currency Management
The RBI is the sole authority for issuing currency notes in India, while coins are issued by the Government of India.
The RBI is the sole authority for issuing currency notes in India, while coins are issued by the Government of India.
Which of the following pairs is correctly matched?
- A. Bank rate - Qualitative credit control
- B. Open market operations - Qualitative credit control
- C. Margin requirement - Quantitative credit control
- D. CRR - Quantitative credit control
Answer: D. CRR - Quantitative credit control
Cash Reserve Ratio (CRR) is a quantitative credit control tool because it affects the total volume of bank lending.
Cash Reserve Ratio (CRR) is a quantitative credit control tool because it affects the total volume of bank lending.