Economic and Social Issues (ESI) Questions for RBI Grade B Phase 2.
Economic and Social Issues (ESI) Questions for RBI Grade B Phase 2.

RBI Grade B ESI Questions for Phase II 2024

RBI Grade B ESI Questions with the answer. RBI Grade B Economic & Social Issues (ESI) Notes PDF. RBI Grade B ESI Study Material PDF. RBI Economic & Social Issues (ESI) Books, PDF, Previous Papers, Question Set, and study material. As we all know that The Reserve Bank of India (RBI) conducted the RBI Grade B Phase I Exam for the post of Grade B (Grade ‘B’ (DR) – (General) & others). It’s the right time when you should start your RBI Grade B Phase II preparation with full pace.

If you are preparing for RBI Grade B ( Phase II), you will come across a section on “Economic & Social Issues (ESI)  wherein 65 questions will be there carrying 50 marks. Here we are providing you with RBI Grade B ESI Questions with answers based on the latest pattern of your daily practice.

Economic and Social Issues (ESI) Questions for RBI Grade B | Test-8

1. SEBI has constituted a “Research Advisory” committee which will assist in formulating policy to undertake research relevant for development and regulation of capital markets. It will be headed by ______.

A. C. Rangarajan
B. Y. B. Damle
C. Viral Acharya
D. H R Khan
E. Sankar De

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Correct Answer: E. Sankar De

Explanation-Market regulator Security and Exchange Board of India (SEBI) has constituted a “Research Advisory” committee which will assist in formulating policy to undertake research relevant for development and regulation of capital markets. According to SEBI, the committee would comprise prominent financial economists and market practitioners. It will be headed by Sankar De.

2. As we all know, banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called?

A. Statutory liquidity ratio
B. Cash reserve ratio
C. Bank deposit
D. Reverse repo
E. Government securities

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Correct Answer – B. Cash reserve ratio

Explanation- As we all know, banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called Cash Reserve Ratio (CRR).

3. The interest rate at which the RBI lends to commercial banks in the short term to maintain liquidity is known as-?
A. Interest rate
B. Repo rate
C. Reverse repo rate
D. Bank rate
E. None of the given options is true

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Correct Answer – B. Repo rate

Explanation: The interest rate at which the RBI lends to commercial banks in the short term to maintain liquidity is known as repo rate.

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4. The interest rate at which the RBI lends to commercial banks in the short term to maintain liquidity is known as repo rate.
A. Central Government
B. Reserve Bank of India
C. Indian Banks Association
D. Note Issuing Authority of India
E. None of the given options is true

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Correct Answer – A. Central Government

Explanation- Government is the final authority for deciding the design, form and material of bank notes.

5. A customer wishes to purchase some US dollars in India. He/she should go to-

A. Public Debt Division of the RBI only
B. American Express Bank Only
C. RBI or any branch of a Bank which is authorized for such business
D. Ministry of Foreign Affairs
E. None of the given options is true

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Correct Answer: C. RBI or any branch of a Bank which is authorized for such business

Explanation- RBI or any branch of a Bank which is authorized for such business.

6. Which of the following are the main functions of the Reserve Bank of India?

A. Granting licenses to commercial banks for opening branches in rural areas
B. Accepting deposits from the public
C. Regulating foreign exchange business
D. Acting as note issuing authority, bankers’ bank and banker to the government
E. None of the given options is true

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Correct Answer: D. Acting as note issuing authority, bankers’ bank and banker to the government

Explanation: Acting as note issuing authority, bankers’ bank and banker to the government is the main functions of the Reserve Bank of India.

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7. What is the Public Debt Office of Reserve Bank of India?

A. is a central depository for all types of Government securities except Treasury Bills
B. attends to the function of note issue the Reserve Bank of India
C. is responsible for maintaining external value of the rupee
D. controls balance of payment position of the Government of India
E. None of the given options is true

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Correct Answer – A. is a central depository for all types of Government securities except Treasury Bills

Explanation:Public Debt Office of RBI is a central depository for all types of Government securities except Treasury Bills.

8. Interest rates on which of the following deposit schemes is fixed or deregulated by the Reserve Bank of India?

A. Fixed deposits above 5 years’ maturity
B. Recurring deposits
C. Savings bank
D. Flexi Deposit Scheme
E. None of the given options is true

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Correct Answer – C. Savings bank

Explanation- Savings bank interest rate decided by RBI. But sometimes commercial bank change this interest rate.

9. Reverse Repo is a tool used by RBI to-
A. Inject liquidity
B. Absorb liquidity
C. Increase the liquidity with the banking system
D. To keep the liquidity at one level
E. None of the given options is true

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Correct Answer – B. Absorb liquidity

Explanation-Repo operations therefore inject liquidity into the system. Reverse repo operation is when RBI borrows money from banks by lending securities. The interest rate paid by RBI is in this case is called the reverse repo rate. Reverse repo operation therefore absorbs the liquidity in the system.

10. The rate of interest banks charge it main/major and prime customers is popularly called as-
A. Risk Premium
B. Prime Lending Rate
C. Repo Rate
D. Reverse Repo Rate
E. Cost of Fund

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Correct Answer – B. Prime Lending Rate

Explanation- The interest rate charged by banks to their largest, most secure, and most creditworthy customers on short-term loans. This rate is used as a guide for computing interest rates for other borrowers.

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Economic & Social Issues (ESI) Quizzes For RBI Grade B

Set-20 Set-19 Set-18 Set-17 Set-16
Set-15 Set-14 Set-13 Set-12 Set-11
Set-10 Set-9 Set-8 Set-7 Set-6
Set-5 Set-4 Set3 Set-2 Set-1

We already published “RBI Grade B Phase-II Cracker eBook 2023 – Economic & Social Issues (ESI) (Theory Notes & 1700+ MCQ)”. You can Download this EBook through the below link-

ESI Post 1 1

RBI Grade B  – Important Links

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RBI Grade B Phase-I Cracker eBook  Finance & Management (FM) EBook  Economic & Social Issues (ESI) EBook
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ESI Practice Questions RBI Grade B Result RBI Grade B Admit Card
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