Join Telegram Group and Get FREE Alerts! Join Now
Join WhatsApp Group For FREE Alerts! Join Now

Money and Banking MCQs

5/5 - (1 vote)

Money and Banking MCQs. We covered all the Money and Banking MCQs in this post for free so that you can practice well for the exam.

Install our MCQTUBE Android app from the Google Play Store and prepare for any competitive government exams for free.

These types of competitive MCQs appear in the exams like UPSC, State PCS, CDS, NDA, Assistant Commandant, SSC, Railway, Bank, Delhi Police, UPSSC, and other Competitive Examinations, etc. We created all the competitive exam MCQs into several small posts on our website for your convenience.

You will get their respective links in the related posts section provided below.

Related Posts:

Mock Test on Money and Banking for Students

Consider the following statements. I. The printing of notes is the total management of the Reserve Bank of India. II. The volume of rupee coins by the are controlled Minister coins of Finance. Which of the statements given above is/are correct?

(a) Only I

(b) Only II

(c) Both I and II

(d) Neither I nor II

Option a – Only I

Consider the following statements. of India can print and I. Reserve Bank issues currency notes of denominations from two rupee notes to ten-thousand rupee notes. II. Reserve Bank of India maintains a separate issue department to look after currency issues. Which of the statements given above is/are correct?

(a) Only I

(b) Only II

(c) Both I and II

(d) Neither I nor II

Option c – Both I and II

Which State of India experiences the maximum annual variation of rainfall?

(A) Meghalaya

(B) Kerala

(C) Rajasthan

(D) West Bengal

Show Answer

The Government of India and RBI have decided to introduce 1 billion pieces of 10 notes in polymer/plastic on a field trial basis. Which of the following is or are the objectives behind this move? I. Increase of the lifetime of the notes II. Combating counterfeiting III. Reducing the cost of minting currency. Select the correct answer using the codes given below.

(a) I and II

(b) Only II

(c) Only III

(d) All of these

Option d – All of these

In the context of India, which of the following factors is/are contributor/ contributors to reducing the risk of a currency crisis? I. The foreign currency earnings of India’s IT sector. II. Increasing the government expenditure. III. Remittances from Indians abroad. Select the correct answer by using the codes given below.

(a) Only I

(b) I and III

(c) Only II

(d) I, II, and III

Option b – I and III

Pakyong Airport is located in?

(A) Sikkim

(B) Jammu and Kashmir

(C) Arunachal Pradesh

(D) Mizoram

Show Answer

Which one of the following is not the most likely measure the government/RBI takes to stop the slide of the Indian Rupee?

(a) Curbing imports of non-essential goods and promoting exports.

(b) Encouraging Indian borrowers to issue rupee-denominated Masala Bonds.

(c) Easing conditions relating to external commercial borrowing.

(d) Following an expansionary monetary policy.

Option d – Following an expansionary monetary policy

Consider the following statements. I. The Reserve Bank of India (RBI) was established in 1935. II. The share capital RBI was divided into shares of 100 each which was entirely owned by private shareholders in the beginning. Which of the statements given above is/are correct?

(a) Only I

(b) Only Il

(c) Both I and II

(d) Neither I nor Il

Option c – Both I and II

Which of the following prints currency notes of the denomination of 100?

(a) The Indian Security Press, Nasik Road

(b) The Bank Note Press, Dewas

(c) The Security Printing Press, Hyderabad

(d) All of the above

Option b – The Bank Note Press, Dewas

The 100 Rupee Currency Note in India is signed by

(a) Governor, the Reserve Bank of India

(b) the Secretary, the Ministry of Finance

(c) the Finance Minister of India

(d) the Prime Minister of India

Option a – Governor, the Reserve Bank of India

Which among the following currencies is the costliest?

(a) French Franc

(b) Swiss Franc

(c) Euro

(d) Pound sterling

Option d – Pound sterling

Money for public utility is issued by the government through the consolidated fund of India through

(a) Finance Minister

(b) RBI Governor

(c) Finance Secretary

(d) None of the above

Option a – Finance Minister

Where is India’s modernized currency notes press situated?

(a) Nasik

(b) Mysore

(c) Hoshangabad

(d) Hyderabad

Option b – Mysore

Financial inclusion as per RBI means

(a) greater consumer protection for newly included customers.

(b) an easily accessed and speedy grievance redressal process.

(c) expanded efforts on financial literacy.

(d) All of the above

Option d – All of the above

Gilt-edged means

(a) bullion market

(b) the market of Government securities

(c) market of guns

(d) the market of pure metals

Option b – the market of Government securities

PCA stands for

(a) Public Current Account

(b) Principles of Corporate Accounting

(c) Prompt Corrective Action

(d) Public Channel Agency

Option c – Prompt Corrective Action

Which of the following is called a Banker’s Cheque?

(a) Demand Draft

(b) Debit Card

(c) Pay Order

(d) Fixed Deposit

Option a – Demand Draft

Which one of the following is the mechanism used by the Reserve Bank of India (RBI) under its credit policy which provides the states banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments?

(a) State Liquidity Adjustment Facility

(b) Cash Reserve Requirement

(c) Liquidity Adjustment Facility

(d) Ways and means advances

Option d – Ways and means advances

Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Asset’s (S4A), recently seen in the news?

(a) It is a procedure for considering the ecological costs of developmental schemes formulated by the government.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(c) It is a disinvestment plan of the government regarding Central Public Sector Undertakings.

(d) It is a recently implemented provision of ‘The Insolvency and Bankruptcy Code’.

Option b – It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties

Consider the following statements I. The Reserve Bank of India was nationalized in the year 1955. II. Reserve Bank of India is a member bank of the Asian Clearing Union. Which of the statements given above is/are correct?

(a) Only I

(b) Only Il

(c) Both I and II

(d) Neither I nor II

Option b – Only II

Consider the following statements. The price of any currency in the international market is decided by the I. World Bank. II. demand for goods/services provided by the country concerned. III. stability of the government of the concerned country. IV. the economic potential of the country in question. Which of the statements given above is correct?

(a) I, II, III and IV

(b) II and III

(c) III and IV

(d) I and IV

Option b – II and III

The Reserve Bank of India was established in the year

(a) 1930

(b) 1935

(c) 1947

(d) 1951

Option b – 1935

The RBI was established on 1st April 1935 on the recommendation of

(a) the Khandwal Commission

(b) Narasimham Commission

(c) Nachiket Mor Commission

(d) Hilton Young Commission

Option d – Hilton Young Commission

When was RBI nationalized?

(a) 1935

(b) 1949

(c) 1929

(d) 1914

Option b – 1949

Who was the first Governor of RBI?

(a) CD Deshmukh

(b) Sir James Taylor

(c) PC Bhattacharya

(d) Sir Osborne Smith

Option d – Sir Osborne Smith

To lower interest rates, the RBI should ( Money and Banking MCQs )

(a) purchase securities.

(b) decrease the money supply.

(c) raise the treasury bill rate.

(d) raise the reserve requirement.

Option a – purchase securities

If the interest rate is decreased in an economy, it will ( Money and Banking MCQs )

(a) decrease consumption expenditure in the economy.

(b) increase the tax collection of the government.

(c) increase the investment expenditure of the economy.

(d) increase in the total savings of the economy.

Option c – increase the investment expenditure of the economy

We covered all the money and banking mcqs above in this post for free so that you can practice well for the exam.

Check out the latest MCQ content by visiting our mcqtube website homepage.

Also, check out:

Leave a Comment