RBI - Selective Questions - 1

RBI – Selective Questions – 1. (Sourced)

1. ‘Not negotiable’ written on a cheque crossing means—
(A) The cheque cannot be paid to anyone but the payee
(B) The cheque is valid only for payment of the transaction for which it is made out

(C) An honest person receiving a stolen cheque is liable to repay the rightful owner  (Ans)
(D) The cheque must be paid into a bank

2. The Central Bank is not expected to perform the function of—
(A) Acting as a clearing house
(B) The banker to the government
(C) Accepting deposit from Commercial Banks
(D) Accepting deposits from general public   (Ans)

3. Increase in bank rates generally is followed by—
(A) An increase in market rate of interest    (Ans)
(B) A fall in market rates of interest
(C) A rise only in the deposits rates but not the lending rates
(D) A rise only in the lending rates

4. The major quantitative monetary tool available with the Central Bank is—
(A) Rationing of credit
(B) Regulation of consumer credit
(C) Margin requirements
(D) Reserve ratio requirements      (Ans)

5. Bank must refuse payment of a cheque where—
(A) Cheque is not dated
(B) Where cheque is stale, i.e. date has expired
(C) Payment has been stopped by customer    (Ans)
(D) The cheque is not presented during working hours of Bank

6. A ‘Stale’ cheque is one that is—
(A) Over three months old   (Ans)
(B) Convening an overdue payment
(C) Cancelled by the drawer
(D) Written on an account which is overdrawn

7. When the Central Bank sells securities, as a result—
(A) The cash resources at the disposal of the commercial banks increase
(B) The cash resources of the commercial banks remain unchanged
(C) The cash resources at the disposal of commercial banks get diminished   (Ans)
(D) None of the above

8. When a cheque is returned by the bank marked ‘Refer to Drawer’ this means the drawer—
(A) Has instructed the bank not to pay the cheque
(B) Wishes to be contacted before the cheque is cashed
(C) Has improperly completed the cheque and must correct it before payment
(D) Had insufficient funds in his account to pay the cheque     (Ans)

9. The current Bank Rate is—
(A) 6%
(B) 8%
(C) 9%      (Ans)
(D) 9·5%

10. It has been made compulsory for Non-Banking Financing Companies to get themselves registered with … before July 8, 1997.
(A) RBI    (Ans)
(B) SEBI
(C) Government of India
(D) None of the above

 11. Which of the following is not a tool in the hands of RBI to control the inflationary pressure in the country?
(A) Bank Rate (BR)
(B) Special Drawing Rights (SDR)     (Ans)
(C) Statutory Liquidity Ratio (SLR)
(D) Cash Reserve Ratio (CRR)

12. Which of the following is/are included in Legal Tender Money in India?
(A) Coins and currency notes     (Ans)
(B) Coins and bank drafts
(C) Currency notes and SDRs
(D) Currency notes issued by RBI

13. Which of the following is correctly matched?
(A) CRR on FCNR (B) Scheme—12%
(B) Bank Rate—9%      (Ans)
(C) SLR on NRE deposits—31·5%
(D) CRR on NRE—13%

14. India’s First Financial Archive has been set up at—
(A) Mumbai
(B) New Delhi
(C) Ahmedabad
(D) Kolkata     (Ans)

15. Which of the following Bank merged with Oriented Bank of Commerce?
(A) New Bank of India
(B) Punjab Co-operative Bank
(C) Bari Doab Bank
(D) (B) and (C) both   (Ans)