Reserve Bank of India Practice Questions for all Bank Exams

1. How many deputy governors does RBI have?
a) One
b) Two
c) Three
d) Four
e) None

2. Who appoints the deputy governors of RBI?
a) RBI Governor
b) Union Government of India
c) President of India
d) Board of directors of RBI
e) None

3. RBI is directly controlled by .......
a) Public
b) All banks in India
c) Central board of directors of RBI
d) Union Government of India
e) None of these

4. How many members will be there in RBI central board of directors?
a) 15
b) 5
c) 21
d) 25
e) 272

5. RBI is formed under which act .......
a) RBI act 1935
b) RBI act 1934
c) Banking regulation act 1949
d) Indian Penal Code (IPC) 1947
e) None of these

6. Institutions, that are appearing in the second schedule of the RBI act 1934 are called as .......
a) Scheduled banks
b) Only commercial banks
c) Non Banking Financial Institutions (NBFC)
d) Both a and c
e) None of these

7. ....... acts as fundamentals to the nation's financial system.
a) RBI
b) Central Government
c) Banks
d) Central Bank
e) None of these

8. Regional Rural Banks are supervised by .......
a) NABARD
b) RBI
c) State Government
d) Central Government
e) None of these

9. Identify the RBI Owned Subsidiaries .......
a) National Housing Bank (NHB).
b) Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL).
c) Deposit Insurance and Credit Guarantee Corporation (DICGC).
d) National Bank for Agriculture and Rural Development (NABARD).
e) All of these

10. RBI's quasi judicial authority for solving disputes between banks and their customer is known as .......
a) Banking codes and standards board of India.
b)Customer services and dispute redressal cell.
c) Banking ombudsman
d) Judgments on disputes and services authority
e) None of these

11. FEMA 1999 stands for .......
a) Financial Exchange Management Act 1999
b) Foreign Exchange Management Act 1999
c) Foreign Economy Management Act 1999
d) Foreign External Management Act 1999
e) None of these

12. Primary activities of RBI are .......
a) Managing foreign exchanges
b) Issuing currency notes
c) Maintaining financial stability
d) Regulating banking system in India
e) All of these

13. Maintaining cash balance with RBI as a share of demand and time liabilities of bank is known as .......
a) CRR
b) SLR
c) LAF
d) MSF
e) None of these

14. Identify RBI Regulatory role from following.......
a) Licensing
b) Monitoring governance
c) Regulating interest rates in specific areas
d) Prescribing capital requirements
e) All the above

15. What are the principles that guide RBI in investing its foreign assets?
a) Safety and liquidity
b) Safety and returns
c) Liquidity and returns
d) Safety, liquidity and returns
e) None

16. Larger value settlement of inter-bank transactions from financial markets is done through .......
a) Real time gross settlement
b) Internal payment and settlement
c) RBI payment system
d) National Electronic Funds Transfer
e) All the above

17. National Bank for Agriculture and Rural Development is established for .......
a) Promoting mutual funds in the country
b) Promoting and regulating housing finance in rural areas
c) Promoting rural and agricultural credit
d) Regulating agriculture in rural areas
e) None of these

18. Cash reserves consists of .......
a) Cash
b) Money market instruments
c) Treasury bills
d) All the above
e) Only a and c

19. Main instruments available to Central Banks to control prime rates of leading banks .......
a) Repo rates
b) Reverse repo rate
c) Cash Reserve Ratio
d) Statutory Liquidity Ratio
e) All the above

20. Acceptance of deposits from the public for the purpose of lending and investment is the main activity of .......
a) Commercial banks
b) Financial institutions
c) Primary dealers
d) Non banking financial companies
e) All the above

21. Banks which are controlled by NABARD and State Government are?
a) Urban cooperative banks
b) Rural cooperative banks
c) Commercial banks
d) Non-banking financial companies
e) None of these

22. RBI's facility of repurchase of securities is known as .......
a) REPO Rate
b) Reverse REPO rate
c) Treasury bills
d) Security rate
e) None of these

23. For efficient and effective payment and settlement system RBI must undertake following activity .......
a) Maintain of clearing houses at various centers.
b) Creation of currency holding chests in different areas.
c) Creation of the mechanism for electronic fund transfer.
d) All the above
e) None of these

24. RBI's regulatory and supervisory policy initiatives are aimed at .......
a) Protection of the depositors' interests
b) Orderly development of banking services
c) Conduct of banking operations
d) Liquidity and solvency of banks
e) All the above

25. Name the publicity campaigns by RBI on security features of rupee currency note are display on poster at bank branches?
a) Know Your Bank note
b) Know Your Money
c) Know Your Currency (KYC)
d) Currency Note Education
e) None

26. External commercial borrowings are such as .......
a) Commercial-bank loan
b) Buyers' credit
c) Securitized instruments
d) Suppliers' credit
e) All the above

27. Who all cannot open account with RBI?
a) Schedule banks
b) Non-schedule banks
c) General public
d) Union Government of India
e) Both b and c

28. Whose signature appears on Indian Rs. 100 note?
a) Finance Minister
b) RBI Governor
c) Finance Secretary
d) Chairman, Planning Commission
e) None

29. While discussing investments there is a mention of short term government security.
What is this investment?
a) Debenture
b) Mutual funds
c) Treasury bill
d) Share
e) None of these

30. Which of the following organisations/agencies is not associated with the world of Banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) SPCA

ANSWERS:
1-d, 2-b, 3-c, 4-c, 5-b, 6-a, 7-c, 8-a, 9-e, 10-c
11-b, 12-e, 13-a, 14-e, 15-d, 16-a, 17-c, 18-d, 19-e, 20-a
21-b, 22-a, 23-d, 24-e, 25-a, 26-e, 27-c, 28. b, 29. c, 30. c