Who appoints the governor of Reserve Bank of India? [A]President of India [B]Prime Minister of India [C]Central Government [D]Vice President of India Show Answer Central GovernmentThe Governor of RBI is appointed by the Central Government. The approval comes from Appointments Committee of the Cabinet.
RBI has a principle that overseas banks are given near national treatment in India only if their home country allowed Indian banks to open branches there without much restrictions. This principle is known as __? [A]Reciprocity [B]National Treatment [C]Equal Treatment [D]Fair Deal Show Answer Reciprocity
What is sold and purchased during Open Market Operations by RBI? [A]Government Securities [B]Commercial Papers [C]Certificates of Deposits [D]Global Depository Receipts Show Answer Government Securities OMOs are conducted by the RBI via the sale/purchase of government securities to/from the market with the primary aim of modulating rupee liquidity conditions in the market OMOs are an […]
The custodian of India’s foreign exchange reserve is__: [A]Department of Finance [B]State Bank of India [C]Reserve Bank of India [D]Board of Financial Supervision Show Answer Reserve Bank of India In 1946, India became a member of the International Monetary Fund (IMF) and from that time RBI has the responsibility of maintaining fixed exchange rates with […]
If Repo Rate is 6%, then which among the following is correct about Reverse Repo and Marginal Standing Facility?
If Repo Rate is 6%, then which among the following is correct about Reverse Repo and Marginal Standing Facility? [A]Reverse Repo Rate is 7% and Marginal Standing Facility is 8% [B]Reverse Repo Rate is 5% and Marginal Standing Facility is 8% [C]Reverse Repo Rate is 5% and Marginal Standing Facility is 7% [D]Reverse Repo Rate […]
Which of the following is available to banks to borrow overnight funds from RBI against the approved government securities?
Which of the following is available to banks to borrow overnight funds from RBI against the approved government securities? [A]Repo Rate [B]Bank Rate [C]Base Rate [D]Marginal Standing Facility Show Answer Marginal Standing Facility MSF is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities. The […]
What is the minimum bid under Liquidity Adjustment Facility? [A]1 Crore [B]2 Crore [C]5 Crore [D]10 Crore Show Answer 5 Crore Under the Liquidity Adjustment Facility, bids need to be for a minimum amount of Rs.5 crore and in multiples of Rs. 5 Crore thereafter.
Which of the following is NOT a correct statement with regard to Liquidity Adjustment Facility: [A]Only Government securities are used as collateral [B]Repo Inject liquidity in the system, while reverse repo absorbs liquidity from the system [C]RBI makes separate announcements for Repo and Reverse Repo Rates [D]Regional Rural Banks are not eligible to participate in […]
Which of the following is the main objective of conductive Open Market Operations? [A]Adjust the capitalization of Banks [B]To contain current account deficit [C]To boost share markets [D]To adjust liquidity conditions Show Answer To adjust liquidity conditions Open Market Operations (OMO) refer to the purchase and sale of the Government Securities (G-Secs) by RBI from […]
What is the number of non-official directors in RBI? [A]12 [B]16 [C]18 [D]20 Show Answer 16 There are 16 non-official directors in RBI. Out of them, there are four represent the local Boards located in Delhi, Chennai, Kolkata and Mumbai, thus representing 4 regions of India. Rest 12 are nominated by the Reserve Bank of […]