Reserve Bank of India

Question 1 : Which of the following is not an essential role of the RBI in the country?

a) Supervision of banks and the payment system.
b) Public debt management.
c) Currency management.
d) Inflation fighting.

Question 2: Which of the following institutions act as an issuer and custodian of currency in India?

a) Ministry of Finance.
b) Reserve Bank of India.
c) State Bank of India.
d) None of the above.

Question 3: Which of the following statements is correct with respect to the Reserve Bank of India?

a) The constitution of India renders an autonomous status to the RBI.
b) RBI act as a Merchant banker for both the state and the central government.
c) RBI has entered into an agreement with the government of India on targeting inflation.
d) Both b and c

Further Reading : RBI Governor

Answers:

1) b. The government of India has taken the  debt management function of the RBI on the recommendation of Financial Sector Reforms Legislative Commission  (FSRLC).
2) b
3) d. The RBI has no constitutional backing.

New Governor of Reserve Bank of India

1) Dr. Urjit Patel, an economist, is slated to succeed Dr. Raghuram Rajan as the new Governor of RBI. Which of the following statements is incorrect with respect to Dr. Urjit Patel?

a) He will be the 8th Deputy Governor to be promoted as central bank chief.
b) Presently, he is the Deputy Governor in RBI in charge of monetary policy.
c) He is the architect of new monetary policy framework for flexible inflation targeting in India.
d) He will be the 21st Governor of RBI.

2) Who of the following authorities is not the member of the Appointments Committee of the Cabinet (ACC) that recently announced the appointment of the new RBI Governor?

a) Prime Minister of India
b) Union Home Minister of India
c) Union Finance Minister of India
d) All of the above are members of ACC.

Answers

1) d, Dr. Urjit Patel will be the 24th Governor of RBI.
2) c , Financial Sector Regulatory Appointments Committee (FSRASC), headed by the Cabinet Secretary recommends the names to ACC for its consideration.