RBI & Monetary Policy Instruments Quiz — 7 Free Questions

Question 1

What is the name of one of the principal functions of the Reserve Bank of India, under which it manages the banking needs, accounts and public debt of both the central government and state governments?

Question 2

What is the name of the integrated platform, generally known by its abbreviation BBPS, enabling customers to pay a wide range of recurring bills, such as electricity and mobile phone bills, through a single unified interface?

Question 3

What is the name of the Reserve Bank of India-backed system allowing individuals to securely share their own financial data, held across different institutions, with a lender or other financial service provider, only with their explicit consent?

Question 4

What is the name of a further principal function of the Reserve Bank of India, under which it holds the cash reserves of commercial banks and acts as a lender of last resort during times of financial stress?

Question 5

What general term describes currency that must, by law, be accepted as valid payment for a debt within a particular country, a status that can be formally withdrawn, as occurred during the 2016 demonetisation discussed elsewhere in this pack?

Question 6

Bringing together the discussion of recent developments from throughout this pack with the earlier packs of this quiz, what general relationship exists between them?

Question 7

How many Deputy Governors are generally cited as typically assisting the Governor of the Reserve Bank of India in managing the institution's various functions?

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About RBI & Monetary Policy Instruments

This quiz is meant for students preparing for the IAS examination and other competitive tests, and for anyone who wants a thorough, well-rounded understanding of the Reserve Bank of India and the tools it uses to manage the country's money and credit. It begins with the RBI's own history, legal foundations and organisational structure, from its 1935 founding through 1949 nationalisation to its present-day departments and governance. It then covers monetary policy instruments in depth -- the repo rate, CRR, SLR, bank rate, the Liquidity Adjustment Facility corridor and the newer Standing Deposit Facility -- followed by a further pack of technical detail on how these tools actually work together. A fourth pack covers qualitative tools and the RBI's wider regulatory and developmental role, including deposit insurance and financial inclusion. A fifth pack covers currency management and payment systems, from demonetisation through UPI to the newly launched Digital Rupee. It closes with recent developments in bank lending rate benchmarks and a synthesis tying the whole institution together. When complete it will have one hundred and forty carefully checked questions, arranged in six packs.

Every question has four options, and the correct option can be in any position. After each question there is a detailed explanation of more than five lines, in simple Indian English that a school student can follow, giving the important names, figures and the points that examiners like to test.

Every fact has been checked against standard reference material on the Reserve Bank of India and Indian monetary policy, current as of this quiz's preparation.