Old question paper jaiib

 Questions for JAIIB PAPER 1 PPB & bank promotion

1. The RBI was set up on the recommendations:
a) Narsimam Committee
b) Royal Commission
c) East India company
d) Chore Committee
Ans: b) RBI was set up on the recommendation of Royal commission also known as Hilton-Young commission
2. The Reserve Bank of India (RBI) commenced its operations on _ during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
A.1 April 1935
B. 1 April 1936
C. 1 April 1937
D. 1 April 1938
Answer: A
3. When was RBI nationalised?
a) January 1,1949
b) January 1,1950
c) January 1,1955
d) January 1,1956
Answer: A
4. Which is not the main function of RBI:
a) Inflation control.
b) Control on bank credit
c) Interest rate control
d) Control Spending & Taxes
Ans: d) Spending is the function of central bank through Fiscal Policy.
5. What is not correct in Hawkish Policy of RBI
a) Aiming to control Inflation
b) Raising Interest Rates
c) Pausing Interest Rates
d) Reducing Interest Rate
Ans: d) When RBI thinks that pricing are rising & thinks of reducing liquidity then RBI uses Hawkish Policy.
6. Who print Re. One Note in India:
a) RBI
b) Government of India
c) RBI in consultation with Government of India
d) Got printed it outside India
Ans: b) The Indian 1-rupee note (₹1) is made up of hundred 100 paise as ₹1 = 100 paise. Currently, it is the smallest Indian banknote in circulation and the only one being issued by the Government of India, as all other banknotes in circulation are issued by the Reserve Bank of India.
7. Who is responsible for formulating Monetary Policy:
a) Ministry of finance
b) Commerce Ministry
c) RBI
d) SBI
Ans: c) The MPC (Monetary Policy Committee) of RBI formulate the Monetary Policy
8. Where is RBI staff college:
a) Mumbai
b) Kolkata
c) Hyderabad
d) Chennai
Answer: d)
9. Who works as RBI's agent at places where it has no office of its own?
a) State Bank of India
b) Ministry of Finance
c) Government of India
d) International Monetary Fund
ANSWER: a) State Bank of India
10. Which of the following is true about the functions performed by RBI -
(i) It is the Bank of Issue
(ii) It acts as banker to the Government
(iii) It is the banker of other banks
(iv) It regulates the flow of credit
(a) Both (i) and (ii)
(b) Both (iii) and (iv)
(c) All the Above
(d) None of the above
ANSWER: (c) All the Above