RBI - Banking awareness questions on current affairs

1)   The Reserve Bank of India will transfer its surplus profit of 65,896 crore rupees to the Centre. This amount is ___ percent higher than previous year.
- Published on 08 Sep 15

a. 5%
b. 19%
c. 25%
d. 33%
Answer  Explanation  Related Ques

ANSWER: 25%

Explanation:
Last year, the apex bank had transferred 52,679 crore rupees of its surplus profit to the Government.


2)   Who was the first governor of RBI?
- Published on 20 Jul 15

a. James Braid Taylor
b. Mihir Sen
c. Nagendra Singh
d. Osborne Smith
Answer  Explanation  Related Ques

ANSWER: Osborne Smith

Explanation:
Osborne Smith was the Governor of Reserve Bank of India from 1 April 1935 to 30 June 1937.


3)   What does RBI regulate through Open Market Operation Transactions?
- Published on 20 Jul 15

a. Flow of Foreign Direct Investment
b. Borrowing powers of the banks
c. Inflation
d. Liquidity in economy
Answer  Explanation  Related Ques

ANSWER: Liquidity in economy

Explanation:
Outright purchase and Repurchase agreement are the two traditional type of OMO's used by RBI.


4)   What is the most powerful tool used by the Reserve Bank of India to control inflation?
- Published on 20 Jul 15

a. Raise interest rates
b. Raise current supply
c. Reduce current supply
d. Reduce interest rates
Answer  Explanation 

ANSWER: Raise interest rates

Explanation:
No explanation is available for this question!


5)   Under whose chairmanship did RBI constitute a Working Group for making balance of payments manual?
- Published on 20 Jul 15

a. Anand Sinha
b. Deepak Mohanty
c. Harun Rashid Khan
d. Kamalesh Chandra Chakrabarty
Answer  Explanation  Related Ques

ANSWER: Deepak Mohanty

Explanation:
Deepak Mohanty is the highest ranked economist in Reserve Bank of India.


6)   Who regulates monetary policy?
- Published on 20 Jul 15

a. IRDA
b. RBI
c. SEBI
d. SIDBI
e. Finance Ministry
Answer  Explanation  Related Ques

ANSWER: RBI

Explanation:
Monetary policy is the process by which the monetary authority of a country controls the supply of money.


7)   Who was the first Indian Governor of RBI?
- Published on 20 Jul 15

a. C. D. Deshmukh
b. Benegal Rama Rau
c. R. K. Shanmukham Chetty
d. K. G. Ambegaonkar
Answer  Explanation 

ANSWER: C. D. Deshmukh

Explanation:
Sir Chintaman Dwarakanath Deshmukh was the first Indian to be appointed as the Governor of the Reserve Bank of India in 1943 by the British Raj authorities.


8)   Which is a tool that helps RBI to stabilize money supply and prices of Government securities?
- Published on 20 Jul 15

a. EOQ
b. EPQ
c. JIT
d. OMO
Answer  Explanation  Related Ques

ANSWER: OMO

Explanation:
An Open Market Operation is an activity by a central bank to buy or sell government bonds on the open market.


9)   Which among the following is incorrect?
- Published on 20 Jul 15

a. RBI is the Bank of Issue
b. RBI acts as Banker to the Government
c. RBI is Banker's Bank
d. RBI does not regulate the flow of credit
Answer  Explanation 

ANSWER: RBI does not regulate the flow of credit

Explanation:
The Reserve Bank of India, as the central bank of the country, regulates the flow of credit.


10)   When did the Centre acquire the Reserve Bank of India's entire 59.73% equity stake in the State Bank of India (SBI) at over Rs. 35,531 crore in New Delhi?
- Published on 20 Jul 15

a. April 5, 2006
b. May 26, 2006
c. June 29, 2007
d. September 30, 2005
Answer  Explanation  Related Ques

ANSWER: June 29, 2007

Explanation:
The Centre acquired the Reserve Bank of India's entire 59.73% equity stake in State Bank of India (SBI) at over Rs. 35,531 crore in New Delhi on June 29, 2007. It is the biggest ever cash purchase. As per the guidelines of the Securities and Exchange Board of India (SEBI), the Government picked up the entire SBI shares held by the SBI at a price of Rs. 1,130.35 a share.


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