Indian Economy PYQ – Reserve Bank of India

← Back

Indian Economy PYQ – Reserve Bank of India – 22 questions, subject: Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

Get daily current affairs & exam alerts – follow us YouTube WhatsApp Channel Telegram Channel Facebook Page Instagram
Share with friends & study groups
Link to this page from your website / blog (HTML code)
1.  
ARGS 2020
Which of the following function/s is/are performed by the Reserve Bank of India?
1. Issue of currency
2. Control of exchange rate
3. Neutrality of money
4. Control of commercial banking

Correct Answer: C [1, 2 and 4 only]

Explanation:

The RBI issues currency, controls the exchange rate and regulates commercial banks, but 'neutrality of money' is an economic concept, not an RBI function.

2.  
Jailor 2022 · Group 1 2022
Which of the following function/s is/are performed by the Reserve Bank of India?
(1) Issue of currency
(2) Control of bank credit
(3) Bankers to the Government
(4) Control of exchange rate

Correct Answer: D [(1), (2), (3) and (4)]

Explanation:

The RBI issues currency, controls bank credit, acts as banker to the Government and is the banker's bank, so all four are its functions.

3.  
Reporter 2022
Main functions of Reserve Bank of India is / are
1. Bank of issue of notes
2. Safety locker
3. Letter of credit
4. Banker's bank

Correct Answer: A [1 and 4 are correct]

Explanation:

Issuing notes and acting as the banker's bank are central bank functions, while safety lockers and letters of credit are services of commercial banks.

4.  
Group 3A 2023
Which of the following statements are true about Central Bank or RBI?
(i) The issuer of currency
(ii) The issuer of industrial licence
(iii) Banker to the Government

Correct Answer: C [(i) and (iii) only]

Explanation:

The RBI issues currency and is banker to the Central and state governments, but industrial licences are issued by the commerce and industry ministry.

5.  
DPGS 2022
What are the Non-Monetary functions of the RBI?
(a) Control of bank credit
(b) Control of foreign exchange operations
(c) Licensing of banks
(d) Deposit insurance scheme

Correct Answer: C [(c) and (d)]

Explanation:

Licensing of banks and deposit insurance (through DICGC) are supervisory and developmental, i.e. non-monetary functions, while credit and forex control are monetary functions.

6.  
GSASO 2020 · DPGS 2022
The Reserve Bank of India was nationalised on

Correct Answer: A [January 1, 1949]

Explanation:

The Reserve Bank of India was nationalised on 1 January 1949 under the Reserve Bank (Transfer to Public Ownership) Act, 1948.

7.  
Group 3A 2023
Who was the first Governor of Reserve Bank of India?

Correct Answer: A [Osborne Smith]

Explanation:

Sir Osborne Smith was the first Governor of the RBI (1935-37); C.D. Deshmukh was the first Indian Governor.

8.  
Bursar 2023
______ system of note-issue is followed by RBI.

Correct Answer: B [Minimum Reserve]

Explanation:

Since 1957 the RBI follows the Minimum Reserve System of note issue, holding at least Rs 200 crore in gold and foreign exchange, of which gold is at least Rs 115 crore.

9.  
SI (Fisheries) 2023
Which bank is called as lender of last resort?

Correct Answer: C [Reserve Bank of India]

Explanation:

The RBI is the lender of last resort because it lends to commercial banks in a crisis when they cannot get funds elsewhere.

10.  
Mass Interviewer 2023
Why is the Reserve Bank of India called the lender of last resort?
(i) It prints the currency notes
(ii) It mints the coins
(iii) At times of crisis, it is the only source capable of lending to commercial banks
(iv) At times of crisis, banks lend to Reserve Bank

Correct Answer: C [(iii) only]

Explanation:

The RBI is called the lender of last resort because in times of crisis it is the final source of loans to banks; printing notes or minting coins is not the reason.

11.  
ACF 2023
Consider the following statements :
(i) Reserve Bank of India is a custodian of forex
(ii) Reserve Bank of India was formed on April 1, 1934
(iii) Reserve Bank of India is also called "Lender of first resort"
(iv) Reserve Bank of India collects receipts of funds and makes payments on behalf of the Government
Which are correct statements?

Correct Answer: B [(i) and (iv)]

Explanation:

The RBI is the custodian of forex reserves and the lender of last resort; it began on 1 April 1935, though the RBI Act was passed in 1934.

12.  
GSASO 2020
Who is responsible to maintain the official rate of exchange?

Correct Answer: A [The Reserve Bank of India]

Explanation:

As custodian of forex reserves, the RBI manages the foreign exchange market under FEMA 1999 and maintains the official exchange rate.

13.  
AHGS 2021
The Credit Authorisation Scheme was introduced by

Correct Answer: B [Reserve Bank of India]

Explanation:

The Credit Authorisation Scheme, a selective credit control, was introduced by the RBI in 1965, requiring banks to get prior approval for large loans.

14.  
Group 1 2021
What are the recent trends in the global economy which led to RBI's 'sell/buy' swap of USD/INR?
(a) Financial markets worldwide facing intense selling pressures due to the spread of Covid-19 infections
(b) Slump in international crude prices
(c) Emerging market currencies experiencing upward pressure

Correct Answer: C [(a) and (b) only]

Explanation:

The RBI's USD/INR swap in March 2020 responded to global selling pressure in financial markets and the Covid-19 shock with falling crude oil prices and bond yields.

15.  
PSY 2022
The Reserve Bank of India on ______ issued new ₹200 denomination banknotes in the Mahatma Gandhi (New) Series, bearing the signature of RBI Governor Dr. Urjit Patel.

Correct Answer: B [25.08.2017]

Explanation:

The RBI first issued the new Rs 200 banknote of the Mahatma Gandhi (New) Series on 25 August 2017, with the Sanchi Stupa on the back.

16.  
EO Gr. III (HR&CE) 2022
Find out which pair is not correct?

Correct Answer: B [FCI – Financial assistance to commercial institutions]

Explanation:

The Food Corporation of India (1965) handles foodgrain procurement, storage and distribution, not financial assistance to commercial institutions, so that pair is wrong.

17.  
Group 1 2022
What are the forms of Central Bank Digital Currency (CBDC) proposed to be introduced by RBI?
1. Account-based
2. Token-based

Correct Answer: C [(1) and (2)]

Explanation:

The RBI's concept note on CBDC (October 2022) describes two forms, account-based and token-based, with the wholesale e-rupee launched on 1 November 2022 and retail on 1 December 2022.

18.  
Research Asst. (Animal Husbandry) 2023
Which one of the following is not a part of central office departments in Reserve Bank of India?

Correct Answer: C [Department of Recruiting Human Resources]

Explanation:

The RBI's central office has a Human Resource Management Department; there is no 'Department of Recruiting Human Resources'.

19.  
EO Gr. I (HR&CE) 2024
If the RBI wishes to practise cheap money policy, it may

Correct Answer: C [lower the bank rate]

Explanation:

A cheap money policy expands credit and money supply, which the RBI achieves by lowering the bank rate, whereas the other options tighten money.

20.  
Group 1 & 1A 2025
Identify the correct statements :
(a) The rate at which the RBI is willing to borrow from the commercial banks is called reverse repo rate
(b) If the RBI increases repo rate, it makes borrowing expensive for banks and vice versa
(c) Repo rate is a tool to control inflation
(d) A lower reverse repo rate decreases inflation

Correct Answer: A [(a), (b) and (c) are correct]

Explanation:

The rate at which RBI borrows from banks is the reverse repo rate; a cut in it pushes banks to lend more, so statements (a), (b) and (c) are correct and (d) is wrong.

21.  
CTS (Interview Posts) 2025
When Reserve Bank of India reduces repo rate, it results in

Correct Answer: A [Increase in the loan disbursements of commercial banks]

Explanation:

A cut in the repo rate lowers banks' borrowing costs and loan interest rates, so commercial banks' loan disbursements increase.

22.  
Group 2A Mains (Re-exam) 2026
Consumer Confidence Survey is released by which one of the following institutions?

Correct Answer: C [Reserve Bank of India]

Explanation:

The Reserve Bank of India conducts and releases the bimonthly Consumer Confidence Survey ahead of its monetary policy meetings.

? Full explanations with tables – Indian Economy PYQ book (₹149): www.shanmugamiasacademy.in/study-materials/tnpsc-indian-economy-pyq

📘 இந்தியப் பொருளாதாரம் — முந்தைய ஆண்டு வினா – விடை – விளக்கம் (2020 – 2026)
Here you get the answer with a one-line explanation. 474 வினாக்கள் தமிழ் + ஆங்கிலத்தில் · சரிபார்க்கப்பட்ட விடை + விளக்கம் · 46 அட்டவணைகள் & குறிப்புகள் · 25 பகுதிகள் · 2020 – 2026 TNPSC தேர்வுகள்
Get the book – ₹149 ₹299 →
Score: 0 Answered: 0 / 0