Banking Awareness - Banking System of India

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Question - 1

Under Section 19 of the Reserve Bank of India act, the RBI has been prohibited from

  • A making loans or advances
  • B drawing or accepting bills or payable otherwise than on demand
  • C allowing interest on deposits or current accounts
  • D All of the above
  • E None of these

Question - 2

Section 31 (2) of the Reserve Bank of India act, 1934 prohibits of making or issuing of a expressed to be payable to bearer thereof

  • A Cheque
  • B bill of exchange
  • C promissory note
  • D demand draft
  • E None of these

Question - 3

Drawing, accepting, making or issuing of any promissory note, hundi or bill of exchange expressed to be payable to bearer on demand by a person other than the Reserve Bank of India or the Central Government is prohibited under

  • A Banking Regulation Act, 1949
  • B Section 31 (1) of the Reserve Bank of India Act, 1934
  • C Negotiable Instruments Act, 1881
  • D Indian Contract Act, 1872
  • E None of the above

Question - 4

Rupee coins are the legal tender in India under the provisions of

  • A Reserve Bank of India Act, 1934
  • B Negotiable Instruments Act, 1881
  • C Banking Regulation Act, 1949
  • D Indian Coinage Act, 1906
  • E None of the above

Question - 5

In India, the system of decimal coinage was introduced on

  • A 15th August, 1947
  • B 26th January, 1950
  • C 1st April, 1957
  • D All of the above
  • E None of the above

Question - 6

Sub-section 12AB of Section 17 of the Reserve Bank of India Act, 1934 defines the term as an instrument for borrowing funds by selling securities of the Central Government or a State Government or such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities, with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed?

  • A Bank rate
  • B LAP
  • C Repo
  • D Reverse repo
  • E None of these

Question - 7

In terms of Section 24 of the Reserve Bank of India Act, 1934, the Reserve Bank of India may issue bank notes for the maximum denomination of  

  • A Rs 500
  • B Rs 5000
  • C Rs 10000
  • D Rs 1000
  • E None of these

Question - 8

Sub-section 12AB of Section 17 of the Reserve Bank of India Act, 1934 defines the term as an instrument for borrowing funds by purchasing securities of the Central Government or a State Government or such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities, with an agreement to reseel the said securities on a mutually agreed future date at an agreed price which includes interest for the funds lent.

  • A Bank rate
  • B LAP
  • C Repo
  • D Reverse repo
  • E None of these

Question - 9

Which of the following is the sale authority for issue of currency in India?

  • A Government of India
  • B Reserve Bank of India
  • C Controller of Currency
  • D All of the above
  • E None of the above

Question - 10

The miniting of rupee coin is governed by

  • A Coinage Act, 1906
  • B Reserve Bank of India Act, 1934
  • C Banking Regulation ACt, 1949
  • D Currency Act, 1902
  • E None of the above
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