Money & Banking PYQs

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1. Prelims 2018Q16Money & Banking

   Consider the following statements :

   1.Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.

   2.CAR is decided by each individual bank.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
2. Prelims 2018Q28Money & Banking

   With reference to digital payments, consider the following statements :

   1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.

   2.While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
3. Prelims 2018Q46Money & Banking

   Which one of the following statements correctly describes the meaning of legal tender money ?

   aThe money which is tendered in courts of law to defray the fee of legal casesbThe money which a creditor is under compulsion to accept in settlement of his claimscThe bank money in the form of cheques, drafts, bills of exchange, etc.dThe metallic money in circulation in a country
4. Prelims 2018Q96Money & Banking

   With reference to the governance of public sector banking in India, consider the following statements :

   1.Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.

   2.To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
5. Prelims 2017Q11Money & Banking

   Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC) ?

   1.It decides the RBI's benchmark interest rates.

   2.It is a 12-member body including the Governor of RBI and is reconstituted every year.

   3.It functions under the chairmanship of the Union Finance Minister.

   Select the correct answer using the code given below :

   a1 onlyb1 and 2 onlyc3 onlyd2 and 3 only
6. Prelims 2017Q40Money & Banking

   What is the purpose of setting up of Small Finance Banks (SFBs) in India ?

   1.To supply credit to small business units

   2.To supply credit to small and marginal farmers

   3.To encourage young entrepreneurs to set up business particularly in rural areas.

   Select the correct answer using the code given below :

   a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
7. Prelims 2017Q43Money & Banking

   Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)' ?

   aMobile wallets will not be necessary for online payments.bDigital currency will totally replace the physical currency in about two decades.cFDI inflows will drastically increase.dDirect transfer of subsidies to poor people will become very effective.
8. Prelims 2017Q64Money & Banking

   Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news ?

   aIt is a procedure for considering ecological costs of developmental schemes formulated by the Government.bIt is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.cIt is a disinvestment plan of the Government regarding Central Public Sector Undertakings.dIt is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.
9. Prelims 2017Q79Money & Banking

   Consider the following statements :

   1.National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.

   2.NPCI has launched RuPay, a card payment scheme.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
10. Prelims 2016Q4Money & Banking

    The establishment of 'Payment Banks' is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

    1.Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.

    2.Payment Banks can issue both credit cards and debit cards.

    3.Payment Banks cannot undertake lending activities.

    Select the correct answer using the code given below.

    a1 and 2 onlyb1 and 3 onlyc2 onlyd1, 2 and 3
11. Prelims 2016Q29Money & Banking

    The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term?

    1.It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.

    2.It is an effort to increase RBI's control over commercial banks through computerization.

    3.It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

    Select the correct answer using the code given below.

    a1 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
12. Prelims 2016Q43Money & Banking

    What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI?

    1.These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.

    2.These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

    Select the correct answer using the code given below.

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
13. Prelims 2016Q66Money & Banking

    With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct?

    1.Bitcoins are tracked by the Central Banks of the countries.

    2.Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.

    3.Online payments can be sent without either side knowing the identity of the other.

    Select the correct answer using the code given below.

    a1 and 2 onlyb2 and 3 onlyc3 onlyd1, 2 and 3
14. Prelims 2016Q73Money & Banking

    Pradhan Mantri MUDRA Yojana is aimed at

    abringing the small entrepreneurs into formal financial systembproviding loans to poor farmers for cultivating particular cropscproviding pensions to old and destitute personsdfunding the voluntary organizations involved in the promotion of skill development and employment generation
15. Prelims 2015Q1Money & Banking

    'Pradhan Mantri Jan-Dhan Yojana' has been launched for

    aproviding housing loan to poor people at cheaper interest ratesbpromoting women's Self-Help Groups in backward areascpromoting financial inclusion in the countrydproviding financial help to the marginalized communities
16. Prelims 2015Q22Money & Banking

    When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

    aIndia's GDP growth rate increases drasticallybForeign Institutional Investors may bring more capital into our countrycScheduled Commercial Banks may cut their lending ratesdIt may drastically reduce the liquidity to the banking system
17. Prelims 2015Q65Money & Banking

    'Basel III Accord' or simply 'Basel III', often seen in the news, seeks to

    adevelop national strategies for the conservation and sustainable use of biological diversitybimprove banking sector's ability to deal with financial and economic stress and improve risk managementcreduce the greenhouse gas emissions but places a heavier burden on developed countriesdtransfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
18. Prelims 2015Q86Money & Banking

    With reference to Indian economy, consider the following :

    1.Bank rate

    2.Open market operations

    3.Public debt

    4.Public revenue

    Which of the above is/are component/components of Monetary Policy?

    a1 onlyb2, 3 and 4c1 and 2d1, 3 and 4
19. Prelims 2015Q100Money & Banking

    With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

    1.It is a Public Limited Government Company.

    2.It is a Non-Banking Financial Company.

    Select the correct answer using the code given below.

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
20. Prelims 2014Q31Money & Banking

    The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

    abanking operationsbcommunication networkingcmilitary strategiesdsupply and demand of agricultural products
21. Prelims 2014Q32Money & Banking

    What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

    1.It enables the beneficiaries to draw their subsidies and social security benefits in their villages.

    2.It enables the beneficiaries in the rural areas to make deposits and withdrawals.

    Select the correct answer using the code given below.

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
22. Prelims 2014Q33Money & BankingAnswer disputed

    In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

    1.To enable the Central Bank to control the amount of advances the banks can create

    2.To make the people’s deposits with banks safe and liquid

    3.To prevent the commercial banks from making excessive profits

    4.To force the banks to have sufficient vault cash to meet their day-to-day requirements

    Select the correct answer using the code given below.

    a1 onlyb1 and 2 onlyc2 and 3 onlyd1, 2, 3 and 4
23. Prelims 2014Q61Money & Banking

    If the interest rate is decreased in an economy, it will

    adecrease the consumption expenditure in the economybincrease the tax collection of the Governmentcincrease the investment expenditure in the economydincrease the total savings in the economy
24. Prelims 2013Q42Money & Banking

    The Reserve Bank of India regulates the commercial banks in matters of

    1.Liquidity of assets

    2.Branch expansion

    3.Merger of banks

    4.Winding-up of banks

    Select the correct answer using the codes given below.

    a1 and 4 onlyb2, 3 and 4 onlyc1, 2 and 3 onlyd1, 2, 3 and 4
25. Prelims 2013Q43Money & Banking

    An increase in the Bank Rate generally indicates that the

    amarket rate of interest is likely to fallbCentral Bank is no longer making loans to commercial bankscCentral Bank is following an easy-money policydCentral Bank is following a tight-money policy
26. Prelims 2013Q74Money & Banking

    Consider the following liquid assets:

    1.Demand deposits with the banks

    2.Time deposits with the banks

    3.Savings deposits with the banks

    4.Currency The correct sequence of these assets in the decreasing order of liquidity is

    a1–4–3–2b4–3–2–1c2–3–1–4d4–1–3–2
27. Prelims 2013Q75Money & Banking

    In the context of Indian economy, ‘Open Market Operations’ refers to

    aborrowing by scheduled banks from the RBIblending by commercial banks to industry and tradecpurchase and sale of government securities by the RBIdNone of the above
28. Prelims 2013Q76Money & Banking

    Priority Sector Lending by banks in India constitutes the lending to

    aagriculturebmicro and small enterprisescweaker sectionsdAll of the above
29. Prelims 2013Q85Money & Banking

    Supply of money remaining the same when there is an increase in demand for money, there will be

    aa fall in the level of pricesban increase in the rate of interestca decrease in the rate of interestdan increase in the level of income and employment
30. Prelims 2012Q75Money & Banking

    The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?

    1.Other banks retain their deposits with the RBI.

    2.The RBI lends funds to the commercial banks in times of need.

    3.The RBI advises the commercial banks on monetary matters.

    Select the correct answer using the codes given below :

    a2 and 3 onlyb1 and 2 onlyc1 and 3 onlyd1, 2 and 3