MCQ Central Banking

Prepared by
Asst Professor Maithili Kende

(NKTT College)
Question Bank MCQ’s
Subject- Central Banking

Class- TY BBI Sem-VI
Fill in the blanks
Unit-I
1) RBI was nationalized in the year_______(a)1949 b)1935 c) 1934 )
2) The RBI is establish in the year _____(a) 1934 b)1935 c) 1949 )
3) Growth with ______is one of the important objectives of monetary policy of the RBI.
(a) Price feasibility, b) Price Stability, c)Price liability)
4) Forecasting or fixing rate of inflation is called______ (a)deflation targeting b)
Inflation targeting c) both)
5) _____is considered as an alternative to CB (a) currency Board, b) National Board c)
Both)
6) Central bank is that bank which controls ______(a)credit, b) assets, c) gold)
7) The inflation target at present for India is_____ (a) 5%, b) 3%, c) 4%)
8) Monetary policy in India is formulated by ______(a) fiscal policy committee b) fiscal
policy committee c) general committee )
9) RBI’s monetary policy has to sub serve the ____, economic & social objectives (a)
national, b) local, c) state)
10) The autonomy of a central bank is limited by______(a) government intervention b)
government restrictions, c) government security)
11) Transparency improves _________ of CB (a) accountability b) credibility c) both)
12) _____is the apex bank of the banking sector of an economy. (a)BOI, b)SBI, c)RBI)
True and false

1) Transparency improves accountability of CB.
2) Globalization has increased the role of central bank.
3) The RBI was established as a private shareholders bank.
4) RBI’s monetary policy has to sub serve the national, economic & social objectives
5) The RBI is totally autonomous and independent of the government.
6) Liberalisation has led to more responsibilities for the CB.
7) Central bank is that bank which controls gold and different metals
8) The autonomy of a central bank is limited by government intervention
9) Monetary policy in India is formulated by general committee of RBI
10) Transparency does not improves accountability of CB
11) CB always ensure transparency
Unit-II
Fill in the blanks
1) There are ____ deputy governor in the RBI.( a) Five, b) Four, c) Six )
2) The present governor of the RBI is the ______ governor ( a)24th ,b)25th,c)26th )
3) The Monetary policy committee meets ______times in a year (a) Four, b) Five c) Six)
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4) The RBI is managed by the ____(a) Central board, b) State board, c) national board)
5) _____was the first governor of RBI (a) Sir Osboume Arkell Smith, b) Sir Mical
Arkell Smith, c) Sir Osboume Arkell bush )
6) Central bank accountability implies that they bear responsibility
for______(a)Monetary policy actions, b)Personnel selections, c)Customer relations)
7) Issue of ____is one of the traditional functions of central bank (a) notes, b) goods, c)
services)
8) The present governor of the RBI is the ______ governor ( a) 24th ,b) 25th,c) 26th )
9) Repos are used to inject____ in the market (a) liquidity b) liability, c) sustainability)
10) Foreign exchange operations are governed by the ______a)-FERA, b) FEMA c) Both)
11) central bank is ____ bank (a) customers b) proprietors c) Bankers)
12) Public Debt is mobilise during____(a)deflation b) Inflation c) Recession )
13) During recession time CRR is_____(a) Increase b) decrease c) constant)
14) Bank rate is ____credit control weapon (a)Qualitative b) Quantitative c) both)
True and false

1) The RBI is managed by central board
2) Foreign exchange operations are governed by the FERA
3) Liquidity adjustment facility are adjusted through CRR and SLR
4) Repos are used to inject liquidity in the market
5) Market stabilization scheme helps to stabilize the exchange rate
6) Short term liquidity is managed through liquidity adjustment facility
7) The Monetary policy committee meets five times in a year
8) Central bank accountability implies that they bear responsibility for customer
selection
9) Monetary policy alone can control inflation
10) CRR and SLR are monetary policy instruments
11) During Recession government increases its expenditure
12) There is no conflict between monetary and fiscal policy
13) central bank is banker’s bank
Unit –III
Fill in the blanks
1) The Banking Regulation Act was pass in the year___ (a) 1935 b)1949 c)1950)
2) Licenses to start a bank are issued by the ____ (a)FERA b)SEBI c) RBI)
3) India’s financial sector has ___regulators (a) multiple b)single c) double )
4) The Core principles for effective supervision were framed by the______ (a)Basel
committee b) Bansel committee c) Tondon Committee)
5) At present there are _____core principles for banking supervision (a) 27 b) 28 c) 29)
6) _____helps both the central and commercial banks(a)OSMOS b) OSMPS c) OSMOP)
7) ___market is the most volatile market (a) pull Money b)call Money c) capital market)
8) Certificate of deposits are issued by_____(a) commercial bank b) Public bank c) both)
9) ____was the first mutual fund established in India (a) Bajaj b) UTI c) ULIP’s)
10) Money markets deals with ____ finance (a) short term b) medium term c) long term)
11) Corporates raise capital by issuing _____(a)Commercial Papers b) debentures c) ROI)
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True and false

1) The banking regulation Act, 1979 give powers to the commercial banks
2) The RBI inspects both banking and non banking finance companies
3) UTI was the first mutual fund established in India
4) Off –site monitoring is concern with supervision of foreign banks
5) OSMOS helps both the central and commercial banks
6) Money laundering and financing terrorism is control through OSMOS
7) SEBI is the leader of the money market
8) Money markets deals with short term funds
9) Money markets deals with long term funds
10) Commercial papers issued by RBI
11) The Banking Regulation Act was pass in the year 1934
Unit-IV
1) The Brettonwoods conference led to the establishment of the _____(a) RBI b) FEMA
c) IMF)
2) IMF provide____ financial assistance to member countries (a) long term b) short term
c) medium term)
3) The ____is the central bank of USA (a) Federal Reserve system b) Reserve system of
USA, Reserve bank of USA)
4) There are ___federal reserve bank in USA (a) 11, b)13, c)12 )
5) The bank of England establish in the year_______ (a)1695, b) 1694, c)1696)
6) At present _____countries adopt EURO as their currency(a) 12, b) 18, c)19)
7) The US$ said to be a_____currency (a) Vehicle, b) valuable c) payable)
8) The World Bank consist of ______ Institutions (a) 4, b) 5, c) 6)
9) Federal reserve bank maintain the stability of the financial system and contain
_____risk in financial markets (a) unsystematic b) systematic c) both)
10) The Bank of England is the central bank of the_____(a) UK b) US c) China)
11) The Bank of Japan was reorganized in____(a) 1942, b) 1948, c)1945)
12) The Bank of Japan, (BOJ) is headquartered in______(a)Tokyo b) Nara c)Kanazawa )
13) The people bank of china was established on _____(a)December 1, 1948, b)
December 2, 1948, c) December 10, 1948)
True and false
1) Reserve bank is the central bank of USA
2) The Asian Development bank is concerned with reduction of poverty in the asian-
pacific region
3) The World Bank consist of 5 Institutions
4) The bank of England is the oldest central bank in the world
5) Federal reserve bank maintain the stability of the financial system and contain
systemic risk in financial markets
6) The Bank of England is the central bank of the United Kingdom
7) The Bank of Japan was reorganized in 1948.
8) The Bank of Japan, (BOJ) is headquartered in Nihonbashi business district in Tokyo.
9) The people bank of china was established on December 1, 1948,
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Unit-V
1) Electronic money is called as______ money (a) E-cash, b) E-money, c) E-Rupee )
2) RTGS stands for _____ ( a)Real time goods settlement b) Real time gross settlement
c) Real time gross standardize )
3) E-payments are increased due to_____(a) online work b) online payments c) online
shopping)
4) There is competition between _______ banking and e- banking (a) traditional b)
Modern c) private )
5) There is ____ in terms of transaction with E-banking (a) privacy b) risk c) freedom)
True and false
1) Electronic money is called as E-cash money
2) E-banking has no disadvantages
3) There is no competition between traditional banking and e- banking
4) There is risk in E-banking
5) E-banking will lead to new type of job opportunity.
Answers
Unit I
Fill in the blanks
1)-a, 2)-a, 3) –b, 4)-b, 5)-a, 6)-a, 7)-c, 8)-b, 9)-a, 10) - a, 11)-b, 12)-c
True and false
1)-F, 2)-T, 3)-T, 4)- T,5)-F, 6)-T ,7)-F,8)-T, 9)-F 10)-T, 11)-T
Unit-II
Fill in the blanks
1)-b, 2)-b, 3) –a, 4)-a, 5)-a, 6)-a, 7)-a, 8)-b, 9)-a, 10)- a, 11)-c, 12)-b, 13)-b, 14)-b
True and false
1)- T, 2)-F, 3)-F, 4)-T, 5)-T, 6)-T 7)-F, 8)-F, 9)- F,10)-T, 11)-T 12)-F 13)-T
Unit-III
Fill in the blanks
1)-b, 2)-c, 3)-a, 4)-a, 5)-c, 6)- a,7)-b), 8)-a,9)-b, 10)-a, 11)-a,
True and false
1)-F, 2)-T, 3)-T, 4)-F, 5)-T, 6)-T, 7)-F, 8)-T, 9)-F, 10)-F, 11)-F
Unit- IV
Fill in the blanks
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1)-c, 2)-b, 3)-a, 4)-c, 5)-b, 6)-c, 7)-a, 8)-b, 9)- b, 10)-a, 11)-a, 12-a, 13-a
True and false
1)-F, 2)-T, 3)-T, 4)-F, 5)-T, 6)-T, 7)-F, 8)-T, 9)-T
Unit-V
Fill in the blanks
1)-b, 2)-b, 3)-c, 4)-a, 5)-b
True and false
1)-F, 2)-F, 3)-F, 4)-F, 5)-T
Prepare by – Asst. Prof. Maithili A Kende
(Asst. Prof NKTT college)

MCQ Central Banking

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MCQ Central Banking

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Prepared by

Asst Professor Maithili Kende

Question Bank MCQ’s

Subject- Central Banking

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True and false

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