Class 12 Finance MCQ Chapter 2 Functions of the RBI Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 2 Functions of the RBI Question Answer and select need one. Class 12 Finance MCQ Chapter 2 Functions of the RBI Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.
Class 12 Finance MCQ Chapter 2 Functions of the RBI
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQs Solutions for All Chapters, You can practice these here.
Functions of the RBI
Chapter: 2
| MCQ |
1. Which of the following is the sole authority for issuing currency notes in India?
(i) Government of India.
(ii) Reserve Bank of India.
(iii) Ministry of Finance.
(iv) State Bank of India.
Ans: (ii) Reserve Bank of India.
2. What is the minimum reserve that the Reserve Bank of India must maintain for issuing currency notes?
(i) Rs. 500 crores.
(ii) Rs. 200 crores.
(iii) Rs. 100 crores.
(iv) Rs. 300 crores.
Ans: (ii) Rs. 200 crores.
3. Who is the lender of last resort in India?
(i) Commercial Banks.
(ii) State Bank of India.
(iii) Reserve Bank of India.
(iv) National Bank for Agriculture and Rural Development.
Ans: (iii) Reserve Bank of India.
4. Under which act does the Reserve Bank of India act as the central banking institution in India?
(i) Reserve Bank of India Act, 1934.
(ii) Banking Regulation Act, 1949.
(iii) Companies Act, 1956.
(iv) Negotiable Instruments Act, 1881.
Ans: (i) Reserve Bank of India Act, 1934.
5. What is the primary function of the Reserve Bank of India as the banker’s bank?
(i) To issue currency notes.
(ii) To regulate money supply.
(iii) To supervise commercial banks.
(iv) To provide financial assistance to governments.
Ans: (iii) To supervise commercial banks.
6. Which of the following is not a function of the Reserve Bank of India?
(i) Control of money supply.
(ii) Issuing passports.
(iii) Acting as banker to the government.
(iv) Managing foreign exchange reserves.
Ans: (ii) Issuing passports.
7. Who appoints the Governor of the Reserve Bank of India?
(i) Prime Minister of India.
(ii) President of India.
(iii) Finance Minister of India.
(iv) Central Government.
Ans: (iv) Central Government.
8. The Reserve Bank of India is authorized to manage India’s foreign exchange reserves under which function?
(i) Banker’s Bank.
(ii) Custodian of Foreign Exchange Reserves.
(iii) Controller of Money Supply.
(iv) Lender of Last Resort.
Ans: (ii) Custodian of Foreign Exchange Reserves.
9. Under which system did the Reserve Bank of India maintain a certain percentage of note issue in gold and convertible securities from 1935 to 1956?
(i) Minimum Reserve System.
(ii) Proportionate Reserve System.
(iii) Flexible Reserve System.
(iv) Monetary Reserve System.
Ans: (ii) Proportionate Reserve System.
10. What is the role of the Reserve Bank of India in the clearing house functions?
(i) To issue new currency notes.
(ii) To regulate the stock market.
(iii) To clear inter-bank transactions.
(iv) To provide loans to commercial banks.
Ans: (iii) To clear inter-bank transactions.
11. Control over the appointment of chairpersons and CEOs of private banks in India lies with which of the following?
(i) Finance Minister.
(ii) Prime Minister.
(iii) Reserve Bank of India.
(iv) Commercial Banks.
Ans: (iii) Reserve Bank of India.
12. The Reserve Bank of India assists in the development of which of the following sectors?
(i) Government sector.
(ii) Cooperative sector.
(iii) Military sector.
(iv) Educational sector.
Ans: (ii) Cooperative sector.
13. What is RBI’s role as a Government’s banker?
(i) To issue cheques for the government.
(ii) To manage government deposits and public debt.
(iii) To control inflation for the government.
(iv) To regulate government loans.
Ans: (ii) To manage government deposits and public debt.
14. The Reserve Bank of India manages the country’s monetary policy through:
(i) Controlling bank rates.
(ii) Issuing government bonds.
(iii) Adjusting interest rates.
(iv) All of the above.
Ans: (iv) All of the above.
15. Which department of the Reserve Bank of India deals with the issuance of currency notes?
(i) Department of Banking Operations.
(ii) Issue Department.
(iii) Foreign Exchange Department.
(iv) Economic Policy Department.
Ans: (ii) Issue Department.
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