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1.

What is/are the main functions of RBI?
(i). Notes Issuance.
(ii). Government's Bankar.
(iii). Banker's Bank.
(iv). Bank's Supervision.

A. Only (i)
B. Both (ii) and (iii)
C. Both (iii) and (iv)
D. All of these.
Answer with Explanation
Answer: Option D
Explanation:

Reserve Bank of India (RBI) is the supreme banking authority of India. All the public & private sector banks or any financial institution in India are controlled by RBI.

RBI is responsible for issuing, exchanging or destroying of currency.

RBI acts as a merchant banker for the Central and State Government. RBI maintains all the banking accounts of the scheduled banks.

RBI operate all the financial and banking operations in India.

Know more : Indian Banking System


Discussion: Click to Discuss
2.

In India, Microfinance development and Equity fund is maintained by-

A. Small industries development Bank of India(SIDBI).
B. RBI(Reserve bank of India).
C. Nabard(National bank for Agriculture and rural development).
D. CII(Confederation of industries in India).
Answer with Explanation
Answer: Option A
Explanation:

Small Industries Development Bank of India (SIDBI) set up on April 2, 1990. It is headquartered at Lucknow, Uttar Pradesh, India. SIDBI is playing the role for the growth and development of Micro, Small and Medium Enterprises (MSME).


Discussion: Click to Discuss
3.

Which of the following rate is decided by the Reserve Bank of India(RBI), is called "Policy Rate"?

A. Cash reserve ratio.
B. Lending rate.
C. Bank rate.
D. Deposite rate.
Answer with Explanation
Answer: Option A
Explanation:

Cash reserve ratio (CRR) is the funds that all the scheduled bank have to maintain with the Reserve Bank of India(RBI), the supreme banking authority of India. By increasing the CRR RBI drain out excessive funds from the scheduled banks.

Example: Suppose the CRR is 5%. A person/customer open a Savings bank account with Rs. 10,000 in State Bank of India. So now State Bank of India has to park Rs. 500 to the Reserve Bank of India (RBI) as per the CRR rate.

5% of 10,000 = 500 (CRR= 5%).


Discussion: Click to Discuss
4.

As per newspaper report, one of the major public sector banks sold out its RS. 500 Cr. loan to IIFCL(India Infrastructure Finance Company Limited). This type of buying and selling of loans in the banking sector is popularly known as,

A. Teaser rate financing.
B. Take-out financing.
C. Infrastructure financing.
D. Development financing.
Answer with Explanation
Answer: Option B
Explanation:

Take-out financing is a kind of long-term financing by the banks. Like 15-20 years. It is also called as 'Take-out Loan'. Usually, Take-out financing is used for real property and commercial purposes.


Discussion: Click to Discuss
5.

'kfw' group released another instalment of its financial aid to India. 'kfw' is an organisation/bank base in;

A. France.
B. Japan.
C. Germany.
D. China.
Answer with Explanation
Answer: Option C
Explanation:

'Kfw' is financial and banking group of Germany. It is Government owned group/bank founded in 1948. It is headquartered in Frankfurt, Germany.


Discussion: Click to Discuss
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