With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements: 1. There is no minimum capital requirement for wholly owned banking subsidiaries in India. 2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals. Which of the statements given above is/are correct?

With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of:

Consider the following statements in respect of the digital rupee: 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. 2. It appears as a liability on the RBI’s balance sheet. 3. It is insured against inflation by its very design. 4. It is freely convertible against commercial bank money and cash. Which of the statements given above are correct?

Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements?

Correct the following statements: Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements?

Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?

With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-fame for spending it. Which of the statements given above is/are correct?

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market. 3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. Which of the statements given above are correct?

Consider the following statements: 1. Tight monetary policy of US Federal Reserve could lead to capital flight. 2. Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs). 3. Devaluation of domestic currency decreases the currency risk associated with ECBs. Which of the statements given above are correct?

With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? 1. The Governor of RBI is the Chairman of BBB. 2. BBB recommends for the selection of heads for Public Sector Banks. 3. BBB helps the Public Sector Banks in developing strategies and capital raising plans. Select the correct answer using the code given below:

Consider the following statements: 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest. 3. The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct?

The money multiplier in an economy increases with which one of the following?

Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve Bank of India 3. Inflation and short-term interest rates Select the correct answer using the code given below.

In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following? 1. Lending to trade and industry bodies when they fail to borrow from other sources 2. Providing liquidity to the banks having a temporary crisis 3. Lending to governments to finance budgetary deficits Select the correct answer using the code given below.

Consider the following statements: Other things remaining unchanged, market demand for a good might increase if 1. Price of its substitute increases 2. Price of its complement increases 3. The good is an inferior good and income of the consumers increases 4. Its price falls Which of the above statements are correct?

With reference to ‘Urban Cooperative Bank’s in India, consider the following statement: 1. They are supervised and regulated by local set up by the State Government. 2. They can issue equity shares and preference shares. 3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statement given above is/are correct?

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimize the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below:

In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owed by households 2. Amounts outstanding on credit cards 3. Treasury bills Select the correct answer using the code given below:

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? 1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer 2. Cost of a new computer if some miscreant willfully damages it, if proved so 3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion 4. Cost of defence in the Court of Law if any third party files a suit Select the correct answer using the code given below:

Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

The Service Area Approach was implemented under the purview of

What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

The Chairman of public sector banks are selected by the

Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?

Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data diktat, command the payment system providers that 1. They shall ensure that entire data relating to payment systems operated by them are stored in a system only in India 2. They shall ensure that the systems are owned and operated by public sector enterprises 3. They shall submit the consolidated system’ audit report to the Comptroller and Auditor General of India by the end of the calendar year Which of the statements given above is/are correct?

The money multiplier in an economy increases with which one of the following?

Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

Which one of the following links all the ATMs in India?

Consider the following statements: 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account holders fail to repay dues. 2. CAR is decided by each individual bank. Which of the statements given above is/are correct?

Which one of the following statements correctly describes the meaning of legal tender money?

With reference to the governance of public sector banking in India, consider the following statements: 1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade. 2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. Which of the statements given above is/are correct?

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? 1. It decides the RBI’s benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below:

The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context? 1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payments Banks. 2. Payment Banks can issue both credit cards and debit cards. 3. Payment Banks cannot undertake lending activities. Select the correct answer using the code given below.

What is/are the purpose/purposes of the ‘Marginal Cost of funds-based Lending Rate (MCLR)’ announced by RBI? 1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. 2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks. Select the correct answer using the code given below.

What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? 1. To bring the idle gold lying with Indian households into the economy 2. To promote FDI in the gold and jewelry sector 3. To reduce India’s dependence on gold imports Select the correct answer using the code given below.

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public revenue. Which of the above is/are component/ components of Monetary Policy?

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

If the interest rate is decreased in an economy, it will

The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas? 1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages. 2. It enables the beneficiaries in the rural areas to make deposits and withdrawals. Select the correct answer using the code given below.

In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to control the amount of advances the bank can create 2. To make the people’s deposits with bank safe and liquid 3. To prevent the commercial banks from making excessive profits 4. To force the banks to have sufficient vault-cash to meet their day-to-day requirements Select the correct answer using the code given below.

An increase in the Bank Rate generally indicates that the

Priority Sector Lending by banks in India constitutes the lending to

Supply of money remaining the same when there is an increase in demand for money, there will be

Which of the following grants/grant direct credit assistance to rural households? 1. Regional Rural Banks 2. National Bank for Agriculture and Rural Development 3. Land Development Banks Select the correct answer using the codes given below.

Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The correct sequence of these assets in the decreasing order of liquidity is

In the context of Indian economy, ‘Open Market Operations’ refers to

The Reserve Bank of India regulates the commercial banks in matters of: 1. Liquidity of assets 2. Branch expansion 3. Merger of banks 4. Winding-up of banks Select the correct answer using the codes given below:

The basic aim of Lead Bank Scheme is that

The Reserve Bank of India (RBI) acts as a banker’s bank. This would imply which of the following? 1. Other banks retain their deposits with the RBI. 2. The RBI lends funds to the commercial banks in times of need. 3. The RBI advises the commercial banks on monetary matters. Select the correct answer using the codes given below:

Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are: 1. Credit Facilities 2. Saving Facilities 3. Insurance Facilities 4. Fund Transfer Facilities Select the correct answer using the codes given below:

In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by

Why is the offering of “teaser loans” by commercial banks a cause of economic concern? 1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future. 2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units. Which of the statements given above is/are correct?

When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?

The lowering of Bank Rate by the Reserve Bank of India leads to

With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?

With reference to India, consider the following: 1. Nationalization of Banks 2. Formation of Regional Rural Banks 3. Adoption of villages by Bank Branches. Which of the above can be considered as steps taken to achieve the “financial inclusion in India”?

With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements: 1. They cannot engage in the acquisition of securities issued by the government 2. They cannot accept demand deposits like Savings Account. Which of the statements given above is/are correct?

Consider the following pairs: Large Bank — Country of Origin 1. ABN Amro Bank: USA 2. Barclays Bank: UK 3. Kookmin Bank: Japan. Which of the above pairs is/are correctly matched?

In the context of independent India’s economy, which one of the following was the earliest event to take place?

Tarapore Committee was associated with which one of the following?

Basel II relates to which one of the following?

Consider the following statements: 1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India. 2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population. Which of the statements given above is/are correct?

The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following?

Consider the following statements: 1. Life Insurance Corporation of India is the oldest insurance company in India. 2. National Insurance Company Limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India. 3. Headquarters of United India Insurance Company Limited are located at Chennai. Which of the statements given above are correct?

Consider the following statements: 1. Reserve Bank of India was nationalized on 26 January 1950 2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance. Which of the statements given above is/are correct?

Consider the following statements: 1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India 2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India. Which of the statements given above is/are correct?

In India, the first bank of limited liability managed by Indians and founded in 1881 was

Consider the following statements: Full convertibility of the rupee may mean 1. its free float with other international currencies. 2. its direct exchange with any other international currency at any prescribed place inside and outside the country. 3. it acts just like any other international currency. Which of these statements are correct?

Consider the following financial institutions of India: 1. Industrial Finance Corporation of India (IFCI). 2. Industrial Credit and Investment Corporation of India (ICICI). 3. Industrial Development Bank of India (IDBI). 4. National Bank for Agriculture and Rural Development (NABARD). The correct chronological sequence of the establishment of these institutions is

Consider the following statements: The Indian Rupee is fully convertible 1. in respect of Current Account of Balance of Payment 2. in respect of Capital Account of Balance of Payment 3. into gold Which of these statements is/are correct?

A: Devaluation of a currency may promote export. R: Price of the country’s products in the international market may fall due to devaluation.

Consider the following statements: The price of any currency in international market is decided by the: 1. World Bank 2. Demand for goods/services provided by the country concerned 3. Stability of the government of the concerned country 4. Economic potential of the country in question Of these statements: Codes:

Capital Account Convertibility of the Indian Rupee implies

The Capital Account Convertibility of the Indian Rupee implies:

The supply-side economics lays greater emphasis on the point of view of

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called

The accounting year of the Reserve Bank of India is

Economic Survey in India is published officially, every year by the

The accounting year of the Reserve Bank of India is:

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

Bank Rate implies the rate of interest:

The Narasimham Committee for financial sector Reforms has suggested reduction in

Which one of the following is not an instrument of selective credit control in India?

Devaluation of a currency means

Convertibility of the rupee implies

The difference between a bank and a Non-Banking Financial Institution (NBFI) is that

When partial convertibility obtains the exchange rate is

Which one of the following pairs is correctly matched?

Variable reserve rates and Open Market Operations are instruments of

‘Interest Rate Policy’ is a component of

Which one of the following functions of the Reserve Bank of India is not performed by the other banks?

Real owners of the company are

Which one of the following is NOT an affiliate of the Reserve Bank of India?

Regional Rural Banks are designed to work in which one of the following ideals?

Which of the following are under the purview of Industrial Development Bank of India? (1) Unit Trust of India (2) Life Insurance Corporation of India (3) Export-Import Bank (4) State Finance corporation of India. Choose the correct answer from the codes given below:

Which of the following pairs is correct?

Find the correct order of the inception (1) IRDP (2) Nationalization of 14 banks (3) Cooperative Banking (4) Land reforms

NABARD, which is set up to provide loans for rural development, is a

Largest nationalized Bank in India is

What is a Scheduled Bank?

Temporary control of inflation can be effected by

“Gresham’s Law” in Economics relates to