MCQ on RBI for RBI Grade B Exam Finance Section

Dear aspirants,
We are presenting you the MCQ on RBI for RBI Grade B for Finance Section of the exam. These questions cover the topics like Issuance of currency, Market Stabilisation Scheme, CRR etc.

mcq on RBI for RBI Grade B

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Let’s read the MCQ on RBI for RBI Grade B and answers are given at the end of the quiz.

  1. Which among the following is correct regarding currency notes issued in India?
    1. Total value of currency notes constitutes the liabilities of Government of India
    2. Total value of currency notes constitutes the assets of Government of India
    3. Total value of currency notes constitutes the liabilities of Reserve Bank of India
    4. Total value of currency notes constitutes the assets of Reserve Bank of India
  2. According to RBI Act, what minimum amount of daily balance needs to be maintained by Government of India with Reserve Bank of India?
    1. Rs 5 crore
    2. Rs 10 crore
    3. Rs 25 crore
    4. Rs 50 crore
  3. According to RBI Act, what minimum amount of balance on every friday needs to be maintained by Government of India with Reserve Bank of India?
    1. Rs 10 crore
    2. Rs 20 crore
    3. Rs 40 crore
    4. Rs 100 crore
  4. Which of the following is/are correct regarding Market Stabilisation Scheme (MSS)?
    a) Market Stabilisation Scheme (MSS) was introduced in April 2004.
    b)It is an agreement between Government of India and Reserve Bank of India to issue government securities
    c)Government securities issued under MSS are used to absorb rupee liquidity created by capital flows of an enduring nature
    d)The proceeds under the MSS were parked in a separate deposit account maintained by the Government with the Reserve Bank
    Select the correct answer from following options:

    1. Only a, b and c
    2. Only b, c and d
    3. Only a, d and c
    4. All are correct
  5. According to RBI Act, what minimum amount of balance on every friday needs to be maintained by State Governments with Reserve Bank of India?
    1. Rs 10 crore
    2. Rs 20 crore
    3. Rs 40 crore
    4. Rs 100 crore
  6. What interest rate is applied on balances on Cash Reserve Ratio (CRR) deposits maintained by Scheduled Commercial Bank (SCB) with RBI?
    1. No interest rate is charged
    2. 2%
    3. 3%
    4. 4%
  7. What is the authorised share capital of Reserve Bank of India?
    1. Rs 1 crore
    2. Rs 5 crore
    3. Rs 10 crore
    4. Rs 25 crore
  8. Which among the following constitutes Forex Exchange Reserves (FER) of India?
    a) Foreign Currency Assets (FCA).
    b) Gold
    c) Special Drawing Rights
    d) Reserve Tranche Position
    Select the correct answer from following options:

    1. Only a and c
    2. Only c and d
    3. Only a, b and c
    4. All are correct
  9. What is the frequency of publishing of the Report on management of Forex Exchange Reserves (FER) by RBI?
    1. Monthly
    2. Quarter
    3. Half-year
    4. Annually
  10. What is the minimum paid up capital and reserve requirement needs to maintain by bank in order to classify as Scheduled Commercial Banks?
    1. Rs 1 lakh
    2. Rs 5 lakh
    3. Rs 10 lakh
    4. Rs 100 lakh

Answers

  1. 3
    The currency notes issued by the Reserve Bank are the Reserve Bank’s liability and this constitutes the liabilities of the Issue Department under RBI.
  2. 2
    The Central and the State Governments maintain deposits with the Reserve Bank. It has been agreed by the Central Government, to maintain a minimum balance of Rs 10 crore daily.
  3. 4
    The Central and the State Governments maintain deposits with the Reserve Bank. It has been agreed by the Central Government, to maintain a minimum balance of Rs 100 crore as on Fridays
  4. 4
    Market Stabilisation Scheme (MSS) was introduced in April 2004 following the Memorandum of Understanding between the Government and the Reserve Bank, whereby, the Government issues securities specifically for the purpose of sterilisation operations. The issuances of Government paper under the MSS are undertaken to absorb rupee liquidity created by capital flows of an enduring nature. In order to neutralize the monetary and budgetary impact of this particular instrument, the proceeds under the MSS were parked in a separate deposit account maintained by the Government with the Reserve Bank which was used only for the purpose of redemption and/or buyback of paper issued under the MSS
  5. 3
    State Governments need to maintain minimum Rs 40 crore balances on every Friday with RBI.
  6. 1
    Deposits under CRR do not carry any interest.
  7. 2
    RBI was started with Share Capital of Rs. 5 Crore, divided into shares of Rs. 100 each fully subscribed shares
  8. 4
    Forex Exchange Reserves (FER) comprises Foreign Currency Assets (FCA), Gold, Special Drawing Rights and Reserve Tranche Position.
  9. 3
  10. 2

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