Money, Banking and RBI — UPSC Prelims PYQs (Set 2)

Q1. Consider the following statements in respect of RTGS and NEFT :
I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.
II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT.
Which of the statements given above is/are correct? UPSC Prelims 2025

Question 1 optionsAI onlyBI and IICI and IIIDIII only
Q2. Consider the following countries :
I. United Arab Emirates
II. France
III. Germany
IV. Singapore
V. Bangladesh
How many countries amongst the above are there other than India where international merchant payments are accepted under UPI? UPSC Prelims 2025

Question 2 optionsAOnly twoBOnly threeCOnly fourDAll the five
Q3. With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of : UPSC Prelims 2024

Question 3 optionsABond marketBForex marketCMoney marketDStock market
Q4. Consider the following statements :
1. window of the Reserve Bank of India.
2.
3.
Which of the statements given above is/are correct ? UPSC Prelims 2024

Question 4 optionsA1 and 2 onlyB3 onlyC1, 2 and 3D2 and 3 only
Q5. In India, which of the following can trade in Corporate Bonds and Government Securities ?
1. Insurance Companies
2. Pension Funds
3. Retail Investors
Select the correct answer using the code given below : UPSC Prelims 2024

Question 5 optionsA1 and 2 onlyB2 and 3 onlyC1 and 3 onlyD1, 2 and 3
Q6. Consider the following :
1. Exchange-Traded Funds (ETF)
2. Motor vehicles
3. Currency swap
Which of the above is/are considered financial instruments ? UPSC Prelims 2024

Question 6 optionsA1 onlyB2 and 3 onlyC1, 2 and 3D1 and 3 only
Q7. With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements :
1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.
2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.
Which of the statements given above is/are correct ? UPSC Prelims 2024

Question 7 optionsA1 onlyB2 onlyCBoth 1 and 2DNeither 1 nor 2
Q8. Consider the following statements in respect of the digital rupee :
1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
2. It appears as a liability on the RBI's balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.
Which of the statements given above are correct ? UPSC Prelims 2024

Question 8 optionsA1 and 2 onlyB1 and 3 onlyC2 and 4 onlyD1, 2 and 4
Q9. Consider the following statements :
Statement–I : Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement–II : InvITs are recognized as borrowers under the ‘Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002’.
Which one of the following is correct in respect of the above statements? UPSC Prelims 2023

Question 9 optionsABoth Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–IBBoth Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–ICStatement–I is correct but Statement–II is incorrectDStatement–I is incorrect but Statement–II is correct
Q10. Consider the following statements :
Statement–I : In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.
Statement–II : Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.
Which one of the following is correct in respect of the above statements? UPSC Prelims 2023

Question 10 optionsABoth Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–IBBoth Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–ICStatement–I is correct but Statement–II is incorrectDStatement–I is incorrect but Statement–II is correct
Q11. Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'? UPSC Prelims 2023

Question 11 optionsAConducting 'Open Market Operations'BOversight of settlement and payment systemsCDebt and cash management for the Central and State GovernmentsDRegulating the functions of Non-banking Financial Institutions
Q12. Consider the following markets :
1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market
How many of the above are included in capital markets? UPSC Prelims 2023

Question 12 optionsAOnly oneBOnly twoCOnly threeDAll four
Q13. Consider the investments in the following assets :
1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients
How many of the above are considered intangible investments? UPSC Prelims 2023

Question 13 optionsAOnly oneBOnly twoCOnly threeDAll four
Q14. With reference to Central Bank digital currencies, consider the following statements :
1. It is possible to make payments in a digital currency without using US dollar or SWIFT system.
2. A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it.
Which of the statements given above is/are correct? UPSC Prelims 2023

Question 14 optionsA1 onlyB2 onlyCBoth 1 and 2DNeither 1 nor 2
Q15. In the context of finance, the term ‘beta’ refers to UPSC Prelims 2023

Question 15 optionsAthe process of simultaneous buying and selling of an asset from different platformsBan investment strategy of a portfolio manager to balance risk versus rewardCa type of systemic risk that arises where perfect hedging is not possibleDa numeric value that measures the fluctuations of a stock to changes in the overall stock market

0 of 15 answered

Money, Banking and RBI — UPSC Prelims PYQs (Set 2)

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