MCQs on Reserve Bank of India (RBI)

Question Bank

1. Which among the following is not a function of the Reserve Bank of India?
a) Issuing currency notes and coins
b) Regulating foreign exchange transactions
c) Conducting monetary policy
d) Issuing government securities
Answer: d) Issuing government securities

2. The Reserve Bank of India was established on:
a) April 1, 1935
b) July 1, 1955
c) August 15, 1947
d) January 26, 1950
Answer: a) April 1, 1935

3. Which committee recommended the establishment of the Reserve Bank of India?
a) Hilton Young Commission
b) FSLRC Committee
c) Raghuram Rajan Committee
d) Narasimham Committee
Answer: a) Hilton Young Commission

4. What is the current repo rate in India as of March 2023?
a) 5%
b) 4.75%
c) 4.50%
d) 4.25%
Answer: a) 5%

5. The Reserve Bank of India issues currency notes in denominations up to: a) Rs. 5000
b) Rs. 10,000
c) Rs. 20,000
d) Rs. 50,000
Answer: b) Rs. 10,000

6. Who is the current Governor of the Reserve Bank of India?
a) Urjit Patel
b) Shaktikanta Das
c) Raghuram Rajan
d) Duvvuri Subbarao
Answer: b) Shaktikanta Das

7. The Reserve Bank of India is headquartered in:
a) Kolkata
b) Mumbai
c) New Delhi
d) Chennai
Answer: b) Mumbai

8. The Reserve Bank of India issues monetary policy through which of the following tools?
a) CRR and SLR
b) Repo rate and reverse repo rate
c) Bank rate
d) All of the above
Answer: d) All of the above

9. What is the full form of CRR in the context of the Reserve Bank of India?
a) Cash Reserve Ratio
b) Current Reserve Ratio
c) Credit Reserve Ratio
d) None of the above
Answer: a) Cash Reserve Ratio

10. Which of the following is not a subsidiary of the Reserve Bank of India?
a) National Bank for Agriculture and Rural Development (NABARD)
b) Deposit Insurance and Credit Guarantee Corporation (DICGC)
c) National Housing Bank (NHB)
d) Securities and Exchange Board of India (SEBI)
Answer: d) Securities and Exchange Board of India (SEBI)