Monetary Policy & Banking Sector Steady

Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI)?

Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative?

Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct?

Which of the following statements about Real-World Assets (RWA) Tokenization are correct? 1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology. 2. Tokenization of r

Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct ? 1. M1xchange provides collateral based loans to MSMEs. 2. M1xchange facilitates discountin

Which of the following statements about Crowdfunding is/are correct ? 1. Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific

With reference to different Committees in India, consider the following details :. Sl. No. Committee Objective Organization under which it was formed --- --- --- --- 1. R.N. Malhotra Committee Comprehensive

Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India : 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs for

Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companie

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

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

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'

Consider the following statements: 1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the

Consider 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

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 distrib

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

In India, which one of the following is responsible for maintaining price stability by controlling inflation?

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. BB

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

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 is

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 t

With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: 1. They are supervised and regulated by local boards set up by the State Governments. 2. They can issue equity shares and preferenc

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

India 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. Which of the s

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

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

Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regi

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

What is the importance of the term “Interest Coverage Ratio” of a firm in India? 1. It help in understanding the present risk of a firm that a bank is going to give loan to. 2. It helps in evaluating the emerging risk o

With reference to the Indian economy, consider the following statements: 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank

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

The Services 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

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 ens

Which of the following is not included in the assets of a commercial bank in India?

Consider the following events: 1. The first democratically elected communist party government formed in a State in India. 2. India's then largest bank, 'Imperial Bank of India', was renamed 'State Bank of India'. 3. Air

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.

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.

Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and th

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 reconstitu

What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units 2. To supply credit to small and marginal farmers 3. To encourage young entrepreneurs to set up busin

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

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 int

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

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?

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

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 banks can create 2. To make the

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

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 decreasing order of Liquidity is

Priority Sector Lending by banks in India constitutes the lending 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.

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

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

An increase in the Bank Rate generally indicates that the:

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 Reserve Bank of India (RBI) acts as a bankers’ 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

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Central Bank 2. Deposit of currency in commercial banks by the p

The basic aim of the Lead Bank Scheme is that:

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 subprime lending and banks may be exposed to the risk of defaulters in future.

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