Financial & Market Regulators PYQs — 14 UPSC CSE Previous Year Questions

Question 1

With reference to different Committees in India, consider the following details: Sl. No. Committee Objective Organization under which it was formed 1. R.N. Malhotra Committee Comprehensive reforms of Insurance sector in India Insurance Regulatory and Development Authority of India 2. L.C. Gupta Committee Preparing a roadmap for the introduction of derivatives trading in India Securities and Exchange Board of India 3. Urjit R. Patel Committee Preparing a roadmap for reforming bank lending to the Housing sector Reserve Bank of India 4. Y.H. Malegam Committee Preparing a roadmap for reforms in Microfinance sector in India Reserve Bank of India In which of the above rows are all the details correctly matched?

Accepted Answer

D. 2 and 4

Question 2

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

Accepted Answer

D. I, II and V

Question 3

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. Which of the above statements are correct?

Accepted Answer

C. 1 and 3 only

Question 4

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. Which of the statements given above is/are correct?

Accepted Answer

C. 2 and 3 only

Question 5

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

Accepted Answer

D. 1, 2, 3 and 4

Question 6

Which of the following grants/grant direct credit assistance to rural households? Regional Rural Banks National Bank for Agriculture and Rural Development Land Development Banks Select the correct answer using the codes given below.

Accepted Answer

C. 1 and 3 only

Question 7

The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following? Other banks retain their deposits with the RBI. The RBI lends funds to the commercial banks in times of need. The RBI advises the commercial banks on monetary matters. Select the correct answer using the codes given below:

Accepted Answer

D. 1, 2 and 3

Question 8

In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by –

Accepted Answer

D. None of the above

Question 9

The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following?

Accepted Answer

B. Reserve Bank of India

Question 10

Consider the following statements:

Life Insurance Corporation of India is the oldest insurance company in India.
National Insurance Company Limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India.
Headquarters of United India Insurance Company Limited are located at Chennai.

Which of the statements given above are correct?

Accepted Answer

C. 2 & 3 only

Question 11

Consider the following statements:

Reserve Bank of India was nationalized on 26 January, 1950.
The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.

Which of the statements given above is/are correct?

Accepted Answer

D. Neither 1 nor 2

Question 12

Consider the following financial institutions of India:

Industrial Finance Corporation of India (IFCI)
Industrial Credit and Investment Corporation of India (ICICI)
Industrial Development Bank of India (IDBI)
National Bank for Agriculture and Rural Development (NABARD)

The correct chronological sequence of the establishment of these institutions is:

Accepted Answer

A. 1, 2, 3, 4

Question 13

Consider the following statements regarding Reserve Bank of India:

It is a banker to the Central Government
It formulates and administers monetary policy
It acts as an agent of the Government in respect of India
It handles the borrowing programme of Government of India

Which of these statements are correct?

Accepted Answer

C. 1, 2, 3 & 4

Question 14

The accounting year of the Reserve Bank of India is:

Accepted Answer

B. July–June

Sl. No.	Committee	Objective	Organization under which it was formed
1.	R.N. Malhotra Committee	Comprehensive reforms of Insurance sector in India	Insurance Regulatory and Development Authority of India
2.	L.C. Gupta Committee	Preparing a roadmap for the introduction of derivatives trading in India	Securities and Exchange Board of India
3.	Urjit R. Patel Committee	Preparing a roadmap for reforming bank lending to the Housing sector	Reserve Bank of India
4.	Y.H. Malegam Committee	Preparing a roadmap for reforms in Microfinance sector in India	Reserve Bank of India