Reserve Bank of India : Functions; Role and monetary policy management

1. In India the basic objectives of Monetary Policy is/ are
   (a) Price stability and adequate credit flow
   (b) Price control and command on economy
   (c) Price reduction and credit reduction
   (d) All of the above
2. “Repo Rate” refers to the rate at which
   (a) RBI borrows short term money from the markets
   (b) Banks keeps the money with RBI
   (c) Bills are discounted by RBI
   (d) Forex purchased by RBI
3. Cash Reserve Ratio (CRR) is maintained in the form of:
   (a) Investment in Money Market
   (b) Government Securities
   (c) Balance with RBI
   (d) All of the above
4. Who is authorized to issue coin in India
   (a) RBI
   (b) Ministry of Finance
   (c) SBI
   (d) None of these
5. The rate of which discounting the bills of first class banks is done by RBI is called
   (a) Bank Rate
   (b) Prime Lending Rate
   (c) Loan Rate
   (d) Discounting Rate
6. Which is not a function of central bank?
   (a) Regulator of currency
   (b) Banker of the government
   (c) Controller of credit
   (d) Receiver of public deposits M.Com Entrance (BHU 2010)
7. Which is not a method of credit control?
   (a) Issue of currency
   (b) Bank rate policy
   (c) Open market operations
   (d) Selective credit controls M.Com Entrance (BHU 2010)
8. Which principle of Note Issue is also called security principle?
   (a) Banking principle
   (b) Gresham’s principle
   (c) Currency principle
   (d) None of these M.Com Entrance (BHU 2018)