Money & Banking PYQs

Tap an option to check it. For one question at a time, use Start practice above.

1. Prelims 2012Q77Money & Banking

   Which of the following measures would result in an increase in the money supply in the economy?

   1.Purchase of government securities from the public by the Central Bank

   2.Deposit of currency in commercial banks by the public

   3.Borrowing by the government from the Central Bank

   4.Sale of government securities to the public by the Central Bank

   Select the correct answer using the codes given below :

   a1 onlyb2 and 4 onlyc1 and 3d2, 3 and 4
2. Prelims 2012Q80Money & Banking

   The basic aim of Lead Bank Scheme is that

   abig banks should try to open offices in each districtbthere should be stiff competition among the various nationalized bankscindividual banks should adopt particular districts for intensive developmentdall the banks should make intensive efforts to mobilize deposits
3. Prelims 2011Q38Money & Banking

   Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are:

   1.Credit facilities

   2.Savings facilities

   3.Insurance facilities

   4.Fund Transfer facilities

   Select the correct answer using the codes given below the lists:

   a1 onlyb1 and 4 onlyc2 and 3 onlyd1, 2, 3 and 4
4. Prelims 2011Q80Money & Banking

   Why is the offering of "teaser loans" by commercial banks a cause of economic concern?

   1.The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.

   2.In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

   Which of the statements given above is/are correct?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
5. Prelims 2011Q88Money & Banking

   The lowering of Bank Rate by the Reserve Bank of India leads to

   aMore liquidity in the marketbLess liquidity in the marketcNo change in the liquidity in the marketdMobilization of more deposits by commercial banks
6. Prelims 2010Q16Money & Banking

   Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government ?

   aCash Credit RatiobDebt Service ObligationcLiquidity Adjustment FacilitydStatutory Liquidity Ratio
7. Prelims 2010Q25Money & Banking

   With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements:

   1.They cannot engage in the acquisition of securities issued by the government.

   2.They cannot accept demand deposits like Savings Account.

   Which of the statements given above is/are correct?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
8. Prelims 2010Q50Money & Banking

   In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by

   aUnion Ministry of FinancebUnion Finance CommissioncIndian Banks’ AssociationdNone of the above
9. Prelims 2010Q81Money & Banking

   When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?

   aThe commercial banks will have less money to lendbThe Reserve Bank of India will have less money to lendcThe Union Government will have less money to lenddThe commercial banks will have more money to lend
10. Prelims 2010Q137Money & Banking

    With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct ?

    aThe Banking Ombudsman is appointed by the Reserve Bank of IndiabThe Banking Ombudsman can consider complaints from Non-Resident Indians having accounts in IndiacThe orders passed by the Banking Ombudsman are final and binding on the parties concerneddThe service provided by the Banking Ombudsman is free of any fee
11. Prelims 2010Q138Money & Banking

    With reference to India, consider the following :

    1.Nationalization of Banks

    2.Formation of Regional Rural Banks

    3.Adoption of villages by Bank Branches

    Which of the above can be considered as steps taken to achieve the “financial inclusion” in India ?

    a1 and 2 onlyb2 and 3 onlyc3 onlyd1, 2 and 3
12. Prelims 2010Q142Money & Banking

    Consider the following statements :

    The functions of commercial banks in India include

    1.Purchase and sale of shares and securities on behalf of customers.

    2.Acting as executors and trustees of wills.

    Which of the statements given above is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
13. Prelims 2009Q29Money & Banking

    Consider the following pairs :

    Large Bank : Country of origin

    1.ABN Amro Bank : USA

    2.Barclays Bank : UK

    3.Kookmin Bank : Japan

    Which of the above pairs is/are correctly matched ?

    a1 onlyb2 onlyc1 and 2d2 and 3
14. Prelims 2009Q119Money & Banking

    In the context of independent India's economy, which one of the following was the earliest event to take place ?

    aNationalisation of Insurance companiesbNationalisation of State Bank of IndiacEnactment of Banking Regulation ActdIntroduction of First Five-Year Plan
15. Prelims 2007Q86Money & Banking

    Consider the following statements:

    1.The repo rate is the rate at which other banks borrow from the Reserve Bank of India.

    2.A value of 1 for the Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.

    Which of the statements given above is/are correct?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
16. Prelims 2007Q113Money & Banking

    Basel II relates to which one of the following?

    aInternational standard for safety in civil aviationbMeasure against cyber crimescMeasure against drug abuse by sportspersonsdInternational standards for measuring the adequacy of a bank’s capital
17. Prelims 2006Q30Money & Banking

    Which one of the following Indian banks is not a nationalized bank?

    aCorporation BankbDena BankcFederal BankdVijaya Bank
18. Prelims 2005Q140Money & Banking

    Consider the following statements:

    1.Global Trust Bank has been amalgamated with the Punjab National Bank.

    2.The second report of the Kelkar Committee dealing with direct and indirect taxes has maintained its original recommendations, including the abolition of exemptions relating to housing loans.

    Which of the statements given above is/are correct?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
19. Prelims 2004Q130Money & Banking

    Consider the following statements:

    1.Reserve Bank of India was nationalized on 26 January 1950.

    2.The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.

    Which of these statements given above is/are correct?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
20. Prelims 2003Q32Money & Banking

    In India, the first bank of limited liability managed by Indians and founded in 1881 was

    aHindustan Commercial BankbOudh Commercial BankcPunjab National BankdPunjab and Sind Bank
21. Prelims 2003Q96Money & Banking

    Consider the following statements:

    1.The maximum limit of shareholding of Indian promoters in private sector banks in India is 49 per cent of the paid-up capital.

    2.Foreign Direct Investment up to 49 per cent from all sources is permitted in private sector banks in India under the automatic route.

    Which of these statements is/are correct?

    aOnly 1bOnly 2cBoth 1 and 2dNeither 1 nor 2
22. Prelims 2002Q116Money & Banking

    Consider the following:

    1.Currency with the public

    2.Demand deposits with banks

    3.Time deposits with banks

    Which of these are included in Broad Money (M3) in India?

    a1 and 2b1 and 3c2 and 3d1, 2 and 3
23. Prelims 2001Q4Money & Banking

    Which of the following committees examined and suggested Financial Sector Reforms?

    aAbid Hussain CommitteebBhagwati CommitteecChelliah CommitteedNarasimham Committee
24. Prelims 2001Q54Money & Banking

    Consider the following statements regarding Reserve Bank of India:

    I.It is a banker to the Central Government.

    II.It formulates and administers monetary policy.

    III.It acts as an agent of the Government in respect of India’s membership of IMF.

    IV.It handles the borrowing programme of Government of India.

    Which of these statements are correct?

    aI and IIbII, III and IVcI, II, III and IVdIII and IV
25. Prelims 1998Q76Money & Banking

    The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called

    aSBR (Statutory Bank Ratio)bSLR (Statutory Liquid Ratio)cCBR (Central Bank Reserve)dCLR (Central Liquid Reserve)
26. Prelims 1998Q87Money & Banking

    The accounting year of the Reserve Bank of India is

    aApril – MarchbJuly – JunecOctober – SeptemberdJanuary – December
27. Prelims 1997Q17Money & Banking

    The sum of which of the following constitutes Broad Money in India?

    I.Currency with the Public

    II.Demand deposits with banks

    III.Time deposits with banks

    IV.Other deposits with RBI

    Choose the correct answer using the codes given below:

    aI and IIbI, II and IIIcI, II, III and IVdI, II and IV
28. Prelims 1995Q55Money & Banking

    Which one of the following is not an instrument of selective credit control in India?

    aRegulation of consumer creditbRationing of creditcMargin requirementsdVariable reserve ratios
29. Prelims 1995Q60Money & Banking

    Bank Rate implies the rate of interest

    apaid by the Reserve Bank of India on the deposits of Commercial Banksbcharged by Banks on loans and advancescpayable on Bondsdat which the Reserve Bank of India discounts the Bills of Exchange
30. Prelims 1995Q64Money & Banking

    The Narasimham Committee for Financial Sector Reforms has suggested reduction in

    aSLR and CRRbSLR, CRR and Priority Sector FinancingcSLR and financing to capital goods sectordCRR, Priority Sector Financing and financing to capital goods sector