MCQ on RBI | Reserve Bank of India MCQ

Banking MCQs
Multiple Choice Questions and Answers
MCQ on RBI (Reserve Bank of India MCQ)

1. In which year the RBI act was passed?

a) 1921

b) 1934

c) 1955

d) 1969

2. In which year RBI came into existence or established?

a) 1921

b) 1934

c) 1935

d) 1969

3. In which year the RBI nationalized or becomes a state owned institution?

a) 1921

b) 1934

c) 1935

d) 1949

Hint: The RBI was nationalized under the Reserve Bank (Transfer to public ownership) Act 1948, on January 1, 1949.

4. How many members are there in the Central Board of the director of the RBI?

a) 5

b) 10

c) 20

d) 100

Hint: There are 20 members in the Central Board of Directors.  Its head office is located in Mumbai.

5. Head office of RBI is located in:

a) Delhi

b) Kolkata

c) Mumbai

d) Chennai

6. How many local Boards are there in the organizations structures of RBI?

a) One

b) Two

c) Three

d) Four

Hint: Four local boards located at Kolkata, Mumbai, New Delhi and Chennai.

7. Who appointed the Governor and the deputy governor of RBI

a) The Central Government

b) The State Government

c) Finance Minister

d) Staff Selection Commission

8. Who was the first governor or RBI?

Ans: Osborne Smith

9. Who was the first Indian Governor or RBI?

Ans: Sri C.D. Deshmukh

10. Who was the present governor or RBI?

Ans: Sri Shaktikant Das

11. The term of Appointment of RBI Governor is:

a) 1 Year

b) 4 Years

c) 5 Years

d) 10 Years

12. Who is the chairman of the Central Board?

Ans: The Government is the chairman of the Central Board.

13. Which department of the RBI is responsible for issuing currency notes?

a) The Loan Department

b) The issue Department

c) The Agricultural Department

d) Advisory Committee

Hint: The issue department of the RBI is responsible for issuing currency notes. 

14. In which year the RBI adopted the minimum reserves system of note issue?              2015

a) 1921

b) 1934

c) 1935

d) 1956

15. One rupee coins and notes are issued in India by:

a) The Central Government

b) The State Government

c) Finance Ministry, Government of India.

d) Staff Selection Commission

Hint: The RBI issue currency notes of Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 200, Rs. 500 Rs. 2000 denominations. The One Rupee notes are issued by the Minister of Finance, Government of India. 

16. What are the principles of issuing notes?

a) Uniformity

b) Elasticity

c) Security

d) All of the above

Hint: The three principles of issuing notes are Uniformity, Elasticity and Security.

17. The RBI was originally set up a _______

a) Public Bank

b) Private Bank

c) Development Bank

d) Merchant Bank

18. Which principle is followed to constitute various departments in RBI?

a) Divisional Structure

b) ‘Functional specialisation’

c) Functional Foremanship

d) Military Organisation

19. Credit authorization scheme was introduced by RBI in:

a) 1935

b) 1949

c) 1965

d) 1969

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Also Read:

1. HS 12 Banking Chapter wise Notes

2. AHSEC Class 12 Banking Question Papers From 2012 Till Date

3. AHSEC Class 12 Banking Solved Question Papers From 2012 Till Date

4. Banking Chapter wise MCQs

5. Class 12 Banking Important Questions and Question Bank

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20. Repo rate is the rate at which RBI lends to scheduled commercial banks for:

a) Short term purpose

b) Medium term purpose

c) Long term purpose

21. In order to inject money into the economy, what does RBI do?

a) Decrease in Repo Rate

b) Purchase of Securities in Open Market

c) Reduction in CRR and SLR

d) All of the above

22. The Bill of discounting for the first time was introduced by RBI in the year

a) 1952

b) 1970

c) 1980

d) 2004

23. What is the period for the bank rate of RBI to issue loan for banks?

a) 3 Years

b) 5 Years

c) 10 Years

d) 20 Years