SECTION-6

Economics Multiple Choice Questions

 
Q41. When the Reserve Bank of India was established?      [UKPCS (Pre) 2011]

(A) 1920
(B) 1930
(C) 1935
(D) 1940

Ans:(C) 1935

 

Q42. Which of the following Banks is the Central Bank of India?       [MPPCS (Pre) 2012]

(A) State Bank of India
(B) Bank of India
(C) Union Bank of India
(D) Reserve Bank of India

Ans:(D) Reserve Bank of India

 

Q43. The headquarters of RBI is situated at        [UPPSC (Pre) 2010]

(A) Delhi
(B) Kolkata
(C) Mumbai
(D) Chennai

Ans:(C) Mumbai

 

Q44. Consider the following statements regarding Reserve Bank of India.
1. It is a banks to the Central Government.
2. It formulates and administer monetary policy.
3. It acts as an agent of government in respect of India.
4. It handles the borrowing programme of Government of India.
Which of these statements are correct?         [UPSC (Pre) 2001]

(A) 1 and 2
(B) 2, 3 and 4
(C) 1, 2, 3 and 4
(D) 3 and 4

Ans:(C) 1, 2, 3 and 4

 

Q45. Which one of the following statements is not correct?        [UPPCS (Mains) 2011]

(A) RBI is the Central Bank of the country
(B) RBI is the banker of the Central and State Government
(C) RBI is the custodian of the country’s Foreign Exchange Reserve
(D) RBI was established in 1949

Ans:(D) RBI was established in 1949

 

Q46. In India ‘Money and Credit’ is controlled by the        [UPPCS (Mains) 2010]

(A) Central Bank of India
(B) Industrial Development Bank of India
(C) Reserve Bank of India
(D) State Bank of India

Ans:(C) Reserve Bank of India

 

Q47. When the Reserve Bank of India announces an increase of the Cash Reserve Ratio (CRR), what does it mean?        [UPSC (Pre) 2010]

(A) The commercial banks will have less money to lend
(B) The Reserve Bank of India will have less money to lend
(C) The Union Government will have less money to lend
(D) The commercial banks will have more money to lend

Ans:(A) The commercial banks will have less money to lend

 

Q48. The lowering of Bank Rate by the Reserve Bank of India leads to     [UPSC (Pre) 2010]

(A) more liquidity in the market
(B) less liquidity in the market
(C) no change in the liquidity in the market
(D) mobilisation of more deposits by commercial banks

Ans:(A) more liquidity in the market

 

Q49. A proportion of total deposits and reserves of the commercial banks deposited with the Reserve Bank of  India is called      [MPPCS (Pre) 2008]

(A) Balance of payment
(B) Bank Guarantee
(C) Caution Money
(D) Cash Reserve Ratio

Ans:(D) Cash Reserve Ratio

 

Q50. An increase in CRR by the Reserve Bank of India results in    [UPPSC (Pre) 2010]

(A) decrease in debt of the government
(B) reduction in liquidity in the economy
(C) attracting more FDI in the country
(D) more flow of credit to desired sector

Ans:(B) reduction in liquidity in the economy

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Read More Sections of Indian Economy Objective Questions

Each section contains maximum 80 Questions. To practice more questions visit other sections.
 

 Indian Economy Objective Questions – Section-1

 

 Indian Economy Objective Questions – Section-2

 

 Indian Economy Objective Questions – Section-3

 

 Indian Economy Objective Questions – Section-4

 

 Indian Economy Objective Questions – Section-5

 

 Indian Economy Objective Questions – Section-6

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