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IBPS RRB Office Assistant Awards — practice questions

Explore 35 free Awards questions in IBPS RRB Office Assistant Banking Awareness. Open each question or exercise to read its content, reference answers and available explanation.

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Awards questions and exercises with answers

Showing questions 1–30 of 35.

In which year did India get its central bank, the Reserve Bank of India?Read the answer and worked solution →Which function of money removes the need for a double coincidence of wants in trade?Read the answer and worked solution →The Cash Reserve Ratio is the percentage of a bank's deposits that it must hold asRead the answer and worked solution →The RBI is described as the 'lender of last resort' because itRead the answer and worked solution →Which of these is a function of the Reserve Bank of India?Read the answer and worked solution →Currency issued by the central bank, held by the public or by banks, is known asRead the answer and worked solution →A commercial bank's 'spread' is the difference between the interest itRead the answer and worked solution →Which requirement obliges a bank to hold reserves in liquid form in the short term?Read the answer and worked solution →When the RBI buys government bonds in the open market, the money supplyRead the answer and worked solution →The rate at which the RBI lends money through a repurchase agreement is theRead the answer and worked solution →Under a reverse repurchase agreement, the RBI is effectivelyRead the answer and worked solution →An increase in the bank rate affects the money supply by makingRead the answer and worked solution →Which of these is a quantitative tool of monetary control?Read the answer and worked solution →As interest rates rise, the quantity of money people wish to holdRead the answer and worked solution →A general rise in the price level means the purchasing power of money hasRead the answer and worked solution →Jan Dhan accounts and Aadhaar-enabled payment systems are steps towardsRead the answer and worked solution →With a CRR of 20 per cent and an initial deposit of Rs 100, how much can the bank lend in the first round?Read the answer and worked solution →How does an outright open market operation differ from a repo?Read the answer and worked solution →The banking system can create credit primarily because depositorsRead the answer and worked solution →In the RBI's measures of money supply, M1 is defined asRead the answer and worked solution →Which pair of monetary aggregates is classified as broad money?Read the answer and worked solution →Which measure of money supply is the one most commonly used?Read the answer and worked solution →Income of Rs 100 arrives on day one and is spent evenly through the month. The average transaction demand for money isRead the answer and worked solution →Sort each item into narrow money or broad money.Read the answer and worked solution →Match each RBI instrument to what it does.Read the answer and worked solution →In each set, tap the item that does not belong.Read the answer and worked solution →True or false: statements on how the RBI moves money supply.Read the answer and worked solution →Work out the credit the banking system can create.Read the answer and worked solution →Tap every quantitative tool of monetary control.Read the answer and worked solution →Answer fast: money supply and RBI tools.Read the answer and worked solution →

Worked practice questions

In which year did India get its central bank, the Reserve Bank of India?

  1. 1949
  2. 1921
  3. 1935
  4. 1947
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Correct answer: C. 1935

1. The central bank of a country is the institution that issues its currency and controls money supply. 2. India's central bank is the Reserve Bank of India. 3. It was established in **1935**, before independence. 4. 1949 is the year the RBI was nationalised, and 1947 is independence, so both are common traps here. _Source: syllabus Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.2 DEMAND FOR MONEY AND SUPPLY OF MONEY_

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Which function of money removes the need for a double coincidence of wants in trade?

  1. Medium of exchange
  2. Store of value
  3. Unit of account
  4. Deferred payment
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Correct answer: A. Medium of exchange

1. Under barter, a trade needs both parties to want what the other has. 2. Money is accepted by everyone, so a seller takes money rather than goods. 3. That role is money acting as a **medium of exchange**. 4. Unit of account is about measuring value, and store of value is about carrying wealth forward, so neither solves the matching problem. _Source: syllabus Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.1 FUNCTIONS OF MONEY_

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The Cash Reserve Ratio is the percentage of a bank's deposits that it must hold as

  1. foreign currency
  2. cash reserves
  3. loans to industry
  4. government bonds
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Correct answer: B. cash reserves

1. The RBI caps credit creation by fixing a minimum reserve. 2. CRR is the share of deposits a bank must keep as **cash reserves**. 3. With a CRR of 20 per cent, deposits of Rs 100 require Rs 20 held back, leaving Rs 80 to lend. 4. Holding government securities is the SLR requirement, which is a separate rule. _Source: syllabus Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.3.2 Limits to Credit Creation and Money Multiplier_

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More Banking Awareness topics

RBI BasicsNPA & RecoveryBanker-Customer RelationshipNegotiable Instruments ActRBI Act & BR ActMonetary PolicyBasel Norms & CapitalFinancial Institutions