Banking General Awareness Question Answers 2017Q1-Who appoints the governor of Reserve Bank of India?
[A]President of India
[B]Prime Minister of India
[D]Vice President of India
Answer - Central Government The Governor of RBI is appointed by the Central Government. The approval comes from Appointments Committee of the Cabinet.
Q2- The Reserve Bank of India has power to print currency notes of up to Rs ____?
Answer - 10,000 The RBI has power to print currency notes of up to Rs 10,000. At present, notes of Rs 10, Rs 100, Rs 500 and Rs 1,000 are only printed.
Q3- Which among the following is a qualitative tool of monetary policy?
[A] Bank Rate
[D]Cash Reserve Ratio
Answer - Credit rationing The quantitative instruments are Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR, Bank Rate, Credit Ceiling etc. On the other hand, qualitative instruments are: credit rationing, moral suasion and direct action (by RBI on banks).