Money, Banking and RBI — UPSC Prelims PYQs (Set 4)

12 questions · UPSC Prelims · 2019–2020 · Indian Economy · Source: UPSC Civil Services Prelims (official papers)

  1. Q1. The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of UPSC Prelims 2020

  2. Q2. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do ?
    1. Cut and optimize the Statutory Liquidity Ratio
    2. Increase the Marginal Standing Facility Rate
    3. Cut the Bank Rate and Repo Rate
    Select the correct answer using the code given below : UPSC Prelims 2020

  3. Q3. Consider the following statements :
    1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
    2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
    Which of the statements given above is/are correct ? UPSC Prelims 2020

  4. Q4. What is the importance of the term “Interest Coverage Ratio” of a firm in India ?
    1. It helps in understanding the present risk of a firm that a bank is going to give loan to.
    2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
    3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.
    Select the correct answer using the code given below : UPSC Prelims 2020

  5. Q5. With reference to the Indian economy, consider the following statements :
    1. ‘Commercial Paper’ is a short-term unsecured promissory note.
    2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
    3. ‘Call Money’ is a short-term finance used for interbank transactions.
    4. ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.
    Which of the statements given above is/are correct ? UPSC Prelims 2020

  6. Q6. The Service Area Approach was implemented under the purview of UPSC Prelims 2019

  7. Q7. Which of the following is not included in the assets of a commercial bank in India? UPSC Prelims 2019

  8. Q8. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly? UPSC Prelims 2019

  9. Q9. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently? UPSC Prelims 2019

  10. Q10. The Chairmen of public sector banks are selected by the UPSC Prelims 2019

  11. Q11. Consider the following statements : The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that
    1. they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India
    2. they shall ensure that the systems are owned and operated by public sector enterprises
    3. they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year
    Which of the statements given above is/are correct? UPSC Prelims 2019

  12. Q12. The money multiplier in an economy increases with which one of the following? UPSC Prelims 2019

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