Correct Answer: C) Maintaining price stability
Explanation: The main objective of the Monetary Policy Committee (MPC) of the RBI is to maintain price stability while keeping in mind the objective of growth.
A) Initial public offering
B) Maturity
C) Start-up
D) Decline
Correct Answer: C) Start-up
Explanation: Angel investors typically provide financial backing for small startups or entrepreneurs, often in exchange for ownership equity in the company.
A) Controlling the foreign exchange reserves
B) Regulating the issue of Indian currency
C) Maintaining price stability
D) Promoting big infrastructure projects
Correct Answer: C) Maintaining price stability
Explanation: The main objective of the Monetary Policy Committee (MPC) of the RBI is to maintain price stability while keeping in mind the objective of growth.
A) Debt Financing
B) Equity Financing
C) Mezzanine Financing
D) Bridge Financing
Correct Answer: B) Equity Financing
Explanation: Venture capital is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
A) Wholesale Price Index (WPI)
B) Consumer Price Index (CPI)
C) SENSEX
D) NIFTY
Correct Answer: B) Consumer Price Index (CPI)
Explanation: RBI uses the Consumer Price Index (CPI) as its major index for measuring inflation and changes in monetary policies.
A) Non-Personal Account
B) Non-Performing Asset
C) Non-Priority Area
D) Non-Probate Asset
Correct Answer: B) Non-Performing Asset
Explanation: An NPA, or Non-Performing Asset, refers to a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
A) The rate at which RBI lends to commercial banks
B) The rate charged by banks to customers for home loans
C) The rate at which RBI borrows money from commercial banks
D) The rate offered on fixed deposits by banks
Correct Answer: A) The rate at which RBI lends to commercial banks
Explanation: The repo rate is the rate at which the central bank of a country (RBI in the case of India) lends money to commercial banks in the event of any shortfall of funds.
A) Urjit Patel Committee
B) Rangarajan Committee
C) Narasimham Committee
D) Kelkar Committee
Correct Answer: C) Narasimham Committee
Explanation: The Narasimham Committee was set up in the 1990s to look into banking sector reforms and to further strengthen the financial institutions of India.
A) Bank Rate
B) Repo Rate
C) Reverse Repo Rate
D) Marginal Standing Facility Rate
Correct Answer: B) Repo Rate
Explanation: The Repo Rate is considered the key interest rate set by the RBI to control inflation and stabilize the currency through the regulation of liquidity in the economy.
A) NIFTY 50
B) BSE Midcap
C) BSE Sensex
D) NIFTY IT
Correct Answer: C) BSE Sensex
Explanation: The BSE Sensex, also called the S&P BSE Sensex, tracks the performance of 30 financially sound and well-established companies listed on the Bombay Stock Exchange (BSE).
A) Corporate governance
B) Poverty estimates
C) Defense expenditures
D) Educational reforms
Correct Answer: B) Poverty estimates
Explanation: The Tendulkar Committee was formed to provide a more comprehensive method for estimating poverty in India, accounting for spending on health and education besides the minimum calorie intake.
A) Large corporations
B) Micro, small and medium enterprises
C) Foreign investors
D) Non-profit organizations
Correct Answer: B) Micro, small and medium enterprises
Explanation: MUDRA (Micro Units Development & Refinance Agency Ltd.) focuses on the development of the MSME sector by providing financial assistance to micro-enterprises.
A) Tax collection
B) Pension fund management
C) Financial sector development
D) Strengthening financial stability
Correct Answer: D) Strengthening financial stability
Explanation: The Financial Stability and Development Council (FSDC) aims to strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination, and promoting financial sector development in India.
A) Deflation
B) Fiscal Deficit
C) Inflation
D) Recession
Correct Answer: B) Fiscal Deficit
Explanation: A fiscal deficit occurs when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowings.
A) International Monetary Fund (IMF)
B) United Nations (UN)
C) World Bank Group
D) World Economic Forum
Correct Answer: C) World Bank Group
Explanation: The Ease of Doing Business Index is compiled by the World Bank Group to measure regulations directly affecting businesses and overall ease of doing business.
A) Increases the export prices
B) Decreases the export prices
C) Stabilizes the export prices
D) Does not affect export prices
Correct Answer: B) Decreases the export prices
Explanation: Depreciation of the currency makes a country’s exports cheaper and more competitive in the global market, potentially increasing the volume of exports.
A) Maharashtra
B) Rajasthan
C) Tamil Nadu
D) Gujarat
Correct Answer: B) Rajasthan
Explanation: Rajasthan launched the Chiranjeevi Health Insurance Scheme to provide health insurance to its residents.
A) Industrial
B) Educational
C) Agricultural
D) Health
Correct Answer: C) Agricultural
Explanation: NABARD (National Bank for Agriculture and Rural Development) focuses on the agricultural sector and rural development.
A) General State Tax
B) General Sales Tax
C) Goods and Services Tax
D) Government Service Tax
Correct Answer: C) Goods and Services Tax
Explanation: GST stands for Goods and Services Tax, which is a unified indirect tax across India on goods and services.
A) New Delhi
B) Mumbai
C) Kolkata
D) Chennai
Correct Answer: B) Mumbai
Explanation: The headquarters of the Reserve Bank of India is located in Mumbai, the financial capital of India.
A) Foreign Exchange Management
B) Government’s banker
C) Trade Facilitation
D) Monetary Authority
Correct Answer: C) Trade Facilitation
Explanation: Trade facilitation is not a function of RBI. The RBI’s functions include monetary authority, government’s banker, and foreign exchange management among others.
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