Reserve Bank of India GK Questions with Answers
31. What is the principle followed by RBI to determine the amount of currency notes to be printed?
- A) Purely based on government requirement
- B) A combination of the Currency Principle and Banking Principle
- C) Solely based on gold reserves
- D) Determined by the printing capacity of the RBI
B) A combination of the Currency Principle and Banking Principle
Explanation: RBI uses a combination of the Currency Principle (backing notes with reserves) and the Banking Principle (meeting credit needs) to manage the money supply.
32. What is the function of the Cash Reserve Ratio (CRR)?
- A) To determine bank lending rates
- B) To maintain liquidity in the banking system
- C) To control inflation
- D) To generate revenue for the government
To control inflation
Explanation: CRR is the portion of deposits that banks must hold with RBI, acting as a tool to control inflation by influencing the money supply.
33. Which of the following is NOT a function of the RBI?
- A) Issuing government bonds
- B) Managing foreign exchange reserves
- C) Acting as the banker’s bank
- D) Supervising commercial banks
B) Managing foreign exchange reserves
Explanation: The government, not the RBI, issues bonds. RBI manages foreign exchange reserves but doesn’t directly issue them.
34. What is the minimum denomination of currency note printed by the RBI (as of June 2024)?
- A) ₹ 1
- B) ₹ 5
- C) ₹ 10
- D) ₹ 20
A) ₹ 1
Explanation: The RBI currently prints currency notes starting from ₹ 1 denomination.
35. What is the term for the short-term borrowings by banks from RBI?
- A) Cash Credit Limit (CCL)
- B) Repo Rate
- C) Bank Rate (Obsolete)
- D) Statutory Liquidity Ratio (SLR)
B) Repo Rate
Explanation: Repo rate is the rate at which RBI lends short-term funds to banks.
36. Who signs on the front side of a rupee note?
- A) Governor of RBI
- B) Finance Minister
- C) Prime Minister
- D) Chief Economic Advisor
A) Governor of RBI
Explanation: The Governor of RBI’s signature appears on the front side of a rupee note.
37. What is the financial year of the RBI?
- A) April 1 – March 31
- B) January 1 – December 31
- C) May 1 – April 30
- D) July 1 – June 30
A) April 1 – March 31
Explanation: The RBI’s financial year follows the same as the Government of India, running from April 1 to March 31.
38. What is the primary objective of the Financial Stability Report published by the RBI?
- A) To analyze government finances
- B) To assess the stability of the Indian financial system
- C) To report on economic growth
- D) To review government policies
B) To assess the stability of the Indian financial system
Explanation: The Financial Stability Report by RBI evaluates the risks and vulnerabilities within the Indian financial system.
39. Which type of bank account does NOT come under the purview of deposit insurance by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI?
- A) Savings account
- B) Current account
- D) Fixed deposit (up to a specific limit)
- D) Demat account
D) Demat account
Explanation: Demat accounts hold shares and securities electronically, not cash deposits. DICGC insures cash deposits in eligible accounts, not investments like stocks.
40. Who was the first woman deputy governor of RBI?
- A) Shyamala Gopinath
- B) Usha Thorat
- C) K.J. Udeshi
- D) R. Gandhi
C) K.J. Udeshi
Explanation: K.J. Udeshi was the first woman to be appointed as the Deputy Governor of the Reserve Bank of India.