Professional Documents
Culture Documents
Introduction
Functions of RBI
Role of RBI
Indian monetary policy
Instruments of Credit controls
Multiple Choice Questions
The Executive head of the Bank is called the Governor, who is assisted by
Deputy Governors and other executive officers.
The General superintendence and direction has been entrusted to the Central
Board of Directors, consisting of the Governor, Dty. Governors, one Govt.
Official from the Ministry of Finance and Directors nominated by the Govt. of
India representing the Local Boards and various elements of the economy.
Besides the Central board there are 4 Local Boards with headquarters in
Mumbai, Kolkata, Chennai and New Delhi.
Issue of Currency
Banker to the Government
Bankers Bank
Custodian of foreign exchange reserves
Controller of credit
Lender of last resort
Central clearance, settlement and transfer of money
Promotional functions
Others
The RBI is the custodian of monetary reserve in India and RBI also is
the custodian of national reserve of international currency.
It has to ensure that normal short term fluctuations do not affect the
exchange rate.
COMMERCIAL BANK
CENTRAL BANK
It is profit-seeking institution
Meaning:
Monetary policy is the one employed by the state through its
central bank, to control the supply of money as an instrument of
achieving the objectives of general economic policy.
Objectives:
Margin Requirements
Issue of directive
General measures of
credit control
Qualitative or
Selective
Measures
1.Margin Requirements:
3. Issue of directive:
4.Rationing of credit:
5. Moral suasion:
6. Direct action:
MCQs
Answer:d
Answer:
C
Answer:d
b. Stability in currency
Answer.: D
c. Control of credit
a. Create
b. Controls
c. Restricts
d. None of the above
Answer.: B
Explanation.:
Creation of credit is
done by commercial
banks.
a. Dear
b. Cheap
c. Restricted
d. Green
Answer.: B
Explanation.: People will
borrow more and
spend/Invest more.
Answer:d
a. Control inflation
b. Discourage hoarding of commodities
c. Encourage flow of credit into neglected sector
d. All of the above
Ans.: D Expln: (Please refer Slide No.:21)
a. Credit
b. Financial
c. Monetary
d. fiscal
Answer;C
Answer:A
Answer: B
Bank rate is the rate at
which the Central Bank
gives loans or
rediscounts the bills of
exchange to the
commercial banks.
a. 9%
b. 10%
c. 4.5%
d. 23%
Answer: A
Note : the bank rate
is as updated up to
Sept. 2012.
a. 4.5%
b. 7.5%
c. 15%
d. 23%
Answer:A
Note : the CRR is as
updated up to Sept.
2012.
a. 4.5%
b. 7.5%
c. 15%
d. 23%
Answer:D
Note : the SLR is as
updated up to Sept.
2012.
Answer:A
RBI is not a profit
making Institution and
it acts in the public
Interest.