Chapter Exam

Chapter 10: Reserve Bank of India — Online MCQ Test

Q: When was the Reserve Bank of India established?

Answer: A. 1 April 1935 — The Reserve Bank of India was established on 1 April 1935 under the Reserve Bank of India Act, 1934.

Q: Which Act governs the functioning of the Reserve Bank of India?

Answer: B. Reserve Bank of India Act, 1934 — The RBI was constituted and is governed by the Reserve Bank of India Act, 1934.

Q: The RBI is known as the banker's bank because it:

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.

Q: Which of the following pairs is correctly matched?

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.

COMMERCE · CLASS 11th · Tamil Nadu State Board

Practice Chapter 10: Reserve Bank of India with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 11th COMMERCE. 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.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 10: Reserve Bank of India — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 11th COMMERCE — Chapter 10: Reserve Bank of India, with answers and explanations. These are sample questions; the exam has its own separate question set.

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.

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 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.

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.

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.

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