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WorksheetsCentral Banking Quiz
Total questions: 15
Worksheet time: 22mins
The role of Central Banks have increased due to the emergence of all the following except _______________.
Increase in the overall population of the world
Increase of International Trade and Globalization
Rapid growth of the financial sector
Free flow of capital between countries
Out of the 4 deputy governors in the Central Board of the RBI, the CAG wants to appoint 2 candidates, a CFA and CA who are very well experienced for above 20 years in matters pertaining to investment & fund management, taxation, and banking systems respectively. Can the CAG go ahead with the appointment of such candidates?
No, the candidates are not fit for the said positions as they are not qualified.
No, the candidates are not fit for the said positions as they have no experience of working in Government Sector
Even if the candidates are eligible for appointment the CAG does not have the power to appoint the Deputy Governor. It may only recommend their candidature.
According to the provisions of Sec. 8(1)(a) of the RBI Act the appointment of these 2 candidates as Deputy Governors by CAG is valid
The farmers of Vidharbha region in Maharashtra have apporached the NABARD's Vidharbh Branch for funding their project where the want to create an artificial pond through rain water harvesting technique as a solution to their irrigation related issues. The NABARD has approached RBI to seek the shortfall in financing this project. What should the RBI do?
RBI should finance the project as it falls under one of its developmental role.
The RBI should help the farmers by giving monetary relief as a part of its CSR activity.
RBI should first seek the permission of the Ministry of Agriculture and take their approval for providing such funds.
The RBI should deny the request as it is the responsibility of the State Government and not of RBI to help the farmers.
Eventhough Adrian Orr, the Govenor of the Reserve Bank of New Zealand (RBNZ) does not agree with the governmen's decision of deficit financing. Due to the pressure from the Prime Minister and Finance Minister the Governor had to change his deceion and allow for printing of excess currency notes for fulfilling the BOP Dues of the government. In the given case, which of the following rights of the central bank were abused?
Right to maintain transperancy
Right to enjoy autonomy and independence
Right to act as Custodian of Foreign Exchange
Right to be held accountable
The members of the Government of Republic of Panama are of the opinion that there is no need to maintain any central bank as it's a waste of resources. Hence, in Pananma the monetary functions of a central bank are managed by the government itself and the non-monetary functions are monitored by the Government owned commercial bank, Banco Nacional de Panamá. What banking philosophy is being followed by the Panamanian Government?
The Modern Banking School
The Rational School
The Banking Monopoly School
The Free Banking School
The higher the accountability and transparency of a central bank, the _______________ is the credibility of the central bank.
Lower
Higher
Negligible
more irrelevant
On a Quarterly or monthly basis the RBI issues certain reports about the monetary, economic and financial developments taking place in India along with showing the contributions it is making to the overall financial systems of India. This help to increase the _______________ of the RBI as a central bank.
Independence
Autonomy
Transparency
Profitability
The monetary transmission rate witnessed by the Central Bank of a developing country is generally _______________ as compared to that of a developed country.
Faster
Slower
Almost the same
Non-Existant
In the developing countries the problem of _______________ market is relatively high which at times lead to disruptions in the overall financial system.
Money
Equity
Unorganized Financial
Organized Financial
With the new proposal of a recognized cryptocurrency by the RBI, the Finance Minister has asked the team of RBI to design a model more advanced and safer than the block-chain mechanism for the Digitla Rupee. The responsibility of creating such a model would be primarily undertaken by the Department of _______________.
Inspection and Supervision
Foreign Exchange
Currency Management
Information Technology
The first Indian Governor of the RBI was _______________.
Mr. Shaktikanta Das
M. Narasimha
Mr. C. D. Deshmukh
Mr. A. Ghosh
The RBI achieves stability in the foreign exchange market through _______________.
Bank rateBank rate
Repo & reverse repo
Market stabilisation scheme
Marginal standing facility
Maintaining the details of the meetings of Central Board and its Committee, Deputy Governors' Committee, Senior Management Committee (SMC) conducted at the RBI and also providing administrative support, including IT related, to the top management is the role of the _______________ Department of the RBI
Currency Management
Secretary's
Rajbhasha
Financial Market Operations
The Reserve bank was nationalized by taking over the British own RBI through government shareholding in ________________.
April 1935
August 1955
July 1969
Jan 1949
The non-official directors of the Central Banks are allowed to hold the office for _______________ years but are eligible for reappointment keeping in mind their retiring age as well.
4
3
5
7
