Banking Sector: Reserve Bank of India (RBI) Establishment

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Questions and Answers

What is one of the roles of RBI as mentioned in the text?

  • Promoting foreign direct investment
  • Developing telecommunications infrastructure
  • Encouraging competition among telecom operators
  • Regulating and supervising banks and financial institutions (correct)

When was the Reserve Bank of India (RBI) established?

  • April 1, 1935 (correct)
  • March 12, 1922
  • January 26, 1950
  • August 15, 1947

What impact did the liberalization of the telecommunications sector have in India?

  • Decreased accessibility of telecommunications services
  • Increased state monopoly
  • Fostered innovation and improved services (correct)
  • Reduced competition among telecom operators

What was one of the primary objectives behind the establishment of the RBI?

<p>Ensuring stability of the country's monetary and financial system (B)</p> Signup and view all the answers

How did the introduction of private players in the telecom sector affect tariffs?

<p>Decreased call and data tariffs (C)</p> Signup and view all the answers

Which institution has the sole right to issue currency notes in India?

<p>Reserve Bank of India (RBI) (C)</p> Signup and view all the answers

What role does RBI play during financial crises?

<p>Providing liquidity support (C)</p> Signup and view all the answers

What role does the RBI play in relation to other banks?

<p>Banker to other banks (D)</p> Signup and view all the answers

What is one outcome of the mobile revolution in India?

<p>Improved rural connectivity (A)</p> Signup and view all the answers

What is one of the functions of the RBI mentioned in the text?

<p>Monetary Policy Formulation (B)</p> Signup and view all the answers

Which policy change occurred in the telecommunications sector post-1991?

<p>Attracting foreign direct investment (B)</p> Signup and view all the answers

What act laid down the provisions for the establishment of the Reserve Bank of India?

<p>Reserve Bank of India Act, 1934 (B)</p> Signup and view all the answers

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