UPSC Prep Engine

2016•Prelims•Paper 1 (GS)•Q.26

With reference to 'Stand Up India Scheme', which of the following statements is/are correct?

Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.

It provides for refinance through SIDBI.

2016•Prelims•Paper 1 (GS)•Q.29

The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term?

It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.

It is an effort to increase RBI's control over commercial banks through computerization.

It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

Economy and Banking

2016•Prelims•Paper 1 (GS)•Q.43

What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI?

These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.

These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

2016•Prelims•Paper 1 (GS)•Q.56

With reference to 'Financial Stability and Development Council', consider the following statements:

It is an organ of NITI Aayog.

It is headed by the Union Finance Minister.

It monitors macroprudential supervision of the economy.

Indian Economy (GS-III)

2016•Prelims•Paper 1 (GS)•Q.66

With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct?

Bitcoins are tracked by the Central Banks of the countries.

Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.

Online payments can be sent without either side knowing the identity of the other.

General Science

2017•Prelims•Paper 1 (GS)•Q.11

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

It decides the RBI's benchmark interest rates.

It is a 12-member body including the Governor of RBI and is reconstituted every year.

It functions under the chairmanship of the Union Finance Minister.

2017•Prelims•Paper 1 (GS)•Q.40

What is the purpose of setting up of Small Finance Banks (SFBs) in India?

To supply credit to small business units

To supply credit to small and marginal farmers

To encourage young entrepreneurs to set up business particularly in rural areas.

2017•Prelims•Paper 1 (GS)•Q.43

Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)'?

2017•Prelims•Paper 1 (GS)•Q.64

Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?

2017•Prelims•Paper 1 (GS)•Q.79

Consider the following statements:

National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.

NPCI has launched RuPay, a card payment scheme.

2018•Prelims•Paper 1 (GS)•Q.15

Which one of the following links all the ATMs in India?

2018•Prelims•Paper 1 (GS)•Q.16

Consider the following statements:

Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.

CAR is decided by each individual bank.

2018•Prelims•Paper 1 (GS)•Q.28

With reference to digital payments, consider the following statements :

BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.

While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

GS-III - Science and Technology- developments and their applications and effects in everyday life

2018•Prelims•Paper 1 (GS)•Q.56

Consider the following statements :

The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.

Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.

Treasury bills offer are issued at a discount from the par value.

2018•Prelims•Paper 2 (CSAT)•Q.73

The graph given below indicates the changes in key policy rates made by the Central Bank several times in a year : Which one of the following can be the most likely reason for the Central Bank for such an action?

CSAT

2019•Prelims•Paper 1 (GS)•Q.64

Which of the following is not included in the assets of a commercial bank in India?

2019•Prelims•Paper 1 (GS)•Q.72

What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

Banking Sector Reforms

2019•Prelims•Paper 1 (GS)•Q.73

The Chairmen of public sector banks are selected by the

Public Sector Bank Governance

2019•Prelims•Paper 1 (GS)•Q.87

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?

Polity

2019•Prelims•Paper 1 (GS)•Q.90

The money multiplier in an economy increases with which one of the following?

2020•Prelims•Paper 1 (GS)•Q.50

If you withdraw ₹ 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

2020•Prelims•Paper 1 (GS)•Q.54

In the context of the Indian economy, non-financial debt includes which of the following?

Housing loans owed by households;

Amounts outstanding on credit cards;

Treasury bills.

2020•Prelims•Paper 1 (GS)•Q.57

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

Cut and optimize the Statutory Liquidity Ratio;

Increase the Marginal Standing Facility Rate;

Cut the Bank Rate and Repo Rate.

2020•Prelims•Paper 1 (GS)•Q.62

What is the importance of the term "Interest Coverage Ratio" of a firm in India?

It helps in understanding the present risk of a firm that a bank is going to give loan to.

It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.

The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt.

2020•Prelims•Paper 1 (GS)•Q.67

Consider the following statements:

The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

The WPI does not capture changes in the prices of services, which CPI does.

Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

2020•Prelims•Paper 1 (GS)•Q.70

With reference to the Indian economy, consider the following statements:

'Commercial Paper' is a short-term unsecured promissory note.

'Certificate of Deposit' is a long-term instrument issued by the Reserve Bank of India to a corporation.

'Call Money' is a short-term finance used for interbank transactions.

'Zero-Coupon Bonds' are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.

2021•Prelims•Paper 1 (GS)•Q.1

Consider the following statements :

The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.

Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.

The Governor of the RBI draws his power from the RBI Act.

Polity

2021•Prelims•Paper 1 (GS)•Q.5

With reference to 'Urban Cooperative Banks' in India, consider the following statements :

They are supervised and regulated by local boards set up by the State Governments.

They can issue equity shares and preference shares.

They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Polity

2021•Prelims•Paper 1 (GS)•Q.6

Indian Government Bond Yields are influenced by which of the following?

Actions of the United States Federal Reserve

Actions of the Reserve Bank of India

Inflation and short-term interest rates

2021•Prelims•Paper 1 (GS)•Q.11

The money multiplier in an economy increases with which one of the following?

Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

2021•Prelims•Paper 1 (GS)•Q.13

With reference to India, consider the following statements :

Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market.

The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.

The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

2021•Prelims•Paper 1 (GS)•Q.15

In India, the central bank's function as the 'lender of last resort' usually refers to which of the following?

Lending to trade and industry bodies when they fail to borrow from other sources

Providing liquidity to the banks having a temporary crisis

Lending to governments to finance budgetary deficits

Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

2022•Prelims•Paper 1 (GS)•Q.3

With reference to the Indian economy, consider the following statements :

If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.

If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.

If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

Economics (Monetary Policy & Forex)

2022•Prelims•Paper 1 (GS)•Q.63

Consider the following statements :

In India, credit rating agencies are regulated by Reserve Bank of India.

The rating agency popularly known as ICRA is a public limited company.

Brickwork Ratings is an Indian credit rating agency.

2022•Prelims•Paper 1 (GS)•Q.68

In India, which one of the following is responsible for maintaining price stability by controlling inflation ?

Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

2023•Prelims•Paper 1 (GS)•Q.22

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?

2023•Prelims•Paper 1 (GS)•Q.24

Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?

2023•Prelims•Paper 1 (GS)•Q.25

Consider the following markets :

Government Bond Market

2023•Prelims•Paper 1 (GS)•Q.72

With reference to Central Bank digital currencies, consider the following statements :

It is possible to make payments in a digital currency without using US dollar or SWIFT system.

A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it.

Science and Technology

2024•Prelims•Paper 1 (GS)•Q.40

With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of:

2024•Prelims•Paper 1 (GS)•Q.42

Consider the following statements:

In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.

In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).

In India, Stock Exchanges can offer separate trading platforms for debts.

2024•Prelims•Paper 1 (GS)•Q.43

In India, which of the following can trade in Corporate Bonds and Government Securities?

2024•Prelims•Paper 1 (GS)•Q.44

Consider the following:

Exchange-Traded Funds (ETF)

Motor vehicles

Currency swap

2024•Prelims•Paper 1 (GS)•Q.49

With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:

There is no minimum capital requirement for wholly owned banking subsidiaries in India.

For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.

2024•Prelims•Paper 1 (GS)•Q.53

Consider the following statements in respect of the digital rupee:

It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.

It appears as a liability on the RBI's balance sheet.

It is insured against inflation by its very design.

It is freely convertible against commercial bank money and cash.

2025•Prelims•Paper 1 (GS)•Q.2

Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below.

2025•Prelims•Paper 1 (GS)•Q.7

Consider the following statements :

Statement I

As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders.

Statement II

Bondholders are lenders to a company whereas stockholders are its owners.

Statement III

For repayment purpose, bondholders are prioritized over stockholders by a company.

Which one of the following is correct in respect of the above statements?

Economics/Finance

2025•Prelims•Paper 1 (GS)•Q.8

Consider the following statements : I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India's stock market has grown rapidly in the recent past even overtaking Hong Kong's at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

Economics/Finance

2025•Prelims•Paper 1 (GS)•Q.68

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?

Science & Technology

2026•Prelims•Paper 1 (GS)•Q.99

Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India:

NBFCs cannot accept demand deposits.

All the NBFCs operating in India have to be registered with the RBI.

NBFCs form part of the payment and settlement system and can issue cheque drawn on itself.

Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs.

What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also?

2021•Mains•GS-I•Q.19

GS-I

2021•Mains•GS-III•Q.9

Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels.

Keeping in view India's internal security, analyse the impact of cross-border cyber attacks. Also discuss defensive measures against these sophisticated attacks.

2021•Mains•GS-III•Q.10

What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation.

2024•Mains•GS-III•Q.2

GS-III - Indian Economy, Inflation and Monetary Policy

2026•Mains•GS-III•Q.1

What do you mean by Digital Rupee? In this context, explain the working and progress of India's Central Bank Digital Currency (CBDC).

Discuss counterfeit currency and money laundering as major sources of terror funding in India. State the actions being taken at International level to check these menaces. Highlight the role of Financial Action Task Force (FATF) and methods of compliance by its member states in preventing terror funding.

2026•Mains•GS-III•Q.20

2013•Prelims•Paper 1 (GS)•Q.42

The Reserve Bank of India regulates the commercial banks in matters of 1. liquidity of assets 2. branch expansion 3. merger of banks 4. winding-up of banks Select the correct answer using the codes given below.

2013•Prelims•Paper 1 (GS)•Q.43

An increase in the Bank Rate generally indicates that the

2013•Prelims•Paper 1 (GS)•Q.75

In the context of Indian economy, 'Open Market Operations' refers to

2013•Prelims•Paper 1 (GS)•Q.76

Priority Sector Lending by banks in India constitutes the lending to

2013•Prelims•Paper 1 (GS)•Q.85

Supply of money remaining the same when there is an increase in demand for money, there will be

2014•Prelims•Paper 1 (GS)•Q.61

If the interest rate is decreased in an economy, it will

2014•Prelims•Paper 2 (CSAT)•Q.61

If the interest rate is decreased in an economy, it will

2015•Prelims•Paper 1 (GS)•Q.22

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

2015•Prelims•Paper 1 (GS)•Q.65

'Basel III Accord' or simply 'Basel III', often seen in the news, seeks to

2015•Prelims•Paper 1 (GS)•Q.86

With reference to Indian economy, consider the following:

Bank rate

Open market operations

Public debt

Public revenue