27 RBI Functions – Custodian of Foreign

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on RBI Functions – Custodian of Foreign Exchange Reserves for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank

1. Which of the following is the custodian of India’s foreign exchange reserve?

[A] Department of Finance
[B] State Bank of India
[C] Reserve Bank of India
[D] Board of Financial Supervision

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2. Which of the following is the main component of Foreign exchange reserves?

[A] Gold
[B] Loans
[C] Domestic currency
[D] Foreign currency assets

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3. Which of the following acts as the first line of defense for India in case of economic slowdown?

[A] Securities
[B] Foreign-exchange reserves
[C] Currency
[D] Gold reserves

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4. Which of the following is/are not included in FOREX?

  1. Foreign currency assets held by the RBI
  2. Gold holdings of the RBI
  3. SDRs
  4. Reserve position in the IMF

Select the correct answer:

[A] 1,2,3
[B] 2,3,4
[C] 1,3,4
[D] None

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5. What is the frequency of publishing of the report on management od FOREX Exchange Reserves (FER) by RBI?

[A] Monthly
[B] Quarterly
[C] Annually
[D] Half year

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6. Which of the following is/are included in FOREX? 1. Foreign currency assets held by the RBI 2. Gold holdings of the RBI 3. SDRs 4. Reserve position in the IMF

[A] 1,2,3
[B] 2,3,4
[C] 1,2,4
[D] All of the above

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7. Which of the following is the biggest contributor of foreign exchange reserve of India?

[A] Foreign Currency assets
[B] Gold
[C] Reserve tranche with IMF
[D] Special Drawing Rights

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8. Which of the followinf is/are uses of foreign exchange reserves?

[A] Back liablities on their own
[B] Influence Monetary policy
[C] Both 1 and 2
[D] None of the above.

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9. How much foreign exchange can be brought in while visiting India?

[A] Without any limit
[B] 10 crore
[C] 25 lac
[D] 5 crore

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10. Which of the following is facilitated by Foreign Exchange Reserves?

[A] External trade
[B] Orderly development
[C] Maintenance of foreign exchange market
[D] All of the above

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