General Awareness question that can be asked in exams like IBPS PO, Clerk, RRB, SSC etc.(GK Quiz-1)

Here are some questions that were asked in exams and that can be asked in various examinations like SSC, IBPS PO, Clerk, RRB, etc.

1.    Depreciation means___________

a)    decrease in monetary value of an asset  over time due to use, wear and tear

b)    Loss due to destruction of plant or factory

c)    Closure of a plant due to some reason

d)    Decrease of currency.
 

2.    Depreciation of currency means__________

a)    Official lowering of the value of a country's currency within a fixed exchange rate system.

b)    Increase of value of a country's currency with respect to one or more foreign reference currency

c)    loss of value of a country's currency with respect to one or more foreign reference currency

d)    Official increasing of the value of a country's currency within a fixed exchange rate system

3.    Devaluation means__________

a)    Official lowering of the value of a country's currency within a fixed exchange rate system.

b)    Increase of value of a country's currency with respect to one or more foreign reference currency

c)    loss of value of a country's currency with respect to one or more foreign reference currency

d)    Official increasing of the value of a country's currency within a fixed exchange rate system

4.    Appreciation of currency means____________

a)    Official lowering of the value of a country's currency within a fixed exchange rate system.

b)    Increase of value of a country's currency with respect to one or more foreign reference currency

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Monetary Policies of India, Monetary Policy instruments/Tools, Objectives of Monetary policy of RBI Quatitative and Qualitative Control measure

Monetary Policies of India, Monitary Policy instruments/Tools, Objectives of Monetary policy of RBI, Quatitative and Qualitative Control measure, What is CRR, What is SLR, What is REPO, What is reverse Repo, Difference between repo and reverse repo, Credit rationing etc.

Monetory Policy: This policy affects the growth of money supply in the economy by changing the cost of credit. It is controlled by Central Bank of India i.e RBI.

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It is of two types:

  I.        Expansionary or Cheap money Policy: It increases money supply by making credit cheaply available.

II.        Contractionary Money Supply: It decreses money supply by making credit expensive.

Monetary policy / monetary management:

It is regarded as an important tool of economic management in India. To push up growth this policy determines the amount of money and credit that will be available to various sector of the economy, whether it is High scale Sector or Small scale Sector. While adopting this policy, it has also to keep in mind that money supply does not exceed the genuine demands of various sectors and lead to inflation.

To strike a balance between the two objectives of pushing growth on the one hand and control inflation on the other, RBI has followed a policy of CONTROLLED EXPANSION that means money supply is expanded to meet only the genuine requirement of various sector taking a caution that it does not leads to inflation.

Objectives of Monetary Policy in INDIA:

1.    Growth With Stability :

Traditionally, RBI’s monetary policy was focused on controlling inflation through contraction of money supply and credit. This resulted in poor growth performance. Thus, RBI has now adopted the policy of ‘Growth with Stability’ as earlier discussed. This means sufficient credit will be available for growing needs of different sectors of economy and at the same time, inflation will be controlled.

2.     Promoting Priority Sector :

 To promote the sector that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises, RBI have put all these sectors under priority sector. RBI with the help of bank provides timely and adequately credit at affordable cost of weaker sections and low income groups. RBI, along with NABARD, is focusing on microfinance through the promotion of Self Help groups and other institutions.

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Most Frequently asked questions related to RBI, important for all the competitive exams and in banking Interviews

1.When did Reserve Bank of India (RBI) formed?

   Ans: 1st April 1935

2. Under Which act RBI was formed?

   Ans: RBI Act 1934

3. When did Reserve Bank of India (RBI) Nationalised ?
   Ans: 1st Jan 1949.

4. Under which act RBI was Nationalised?

   Ans: RBI Nationalisation Act 1949.

5. Who was the First Reserve Bank of India (RBI) Governor ?
   Ans: Sir Osborne Smith

6. Who was the first Indian RBI Governor ?
   Ans: C.D.Deshmukh

7. Where was the first Headquarters of Reserve Bank of India (RBI) ?
   Ans: Kolkata

8. When did the Headquarters of Reserve Bank of India (RBI) moved to Mumbai ?
   Ans: 1937

9. Which Commission recommended the formation of Reserve Bank of India (RBI) ?
   Ans: Hilton Young Commission (Royal commission)

10. Which bank is known as Banker's Bank ?
   Ans: Reserve Bank of India (RBI)

11.Who introduced the Banking Ombudsman Scheme ?
   Ans: Reserve Bank of India

12. How much Minimum Reserve RBI has to keep?

   Ans: Rs 200 crore out of which 115 crore worth of Gold,  85 crore worth of  Foreign Securities.

13. Governor of India?

   Ans: Dr. Raghuram Rajan (From: 5Sep2013 )

14. How many Deputy Governor  RBI has at at a time?

    Ans:  Four.          

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