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(Q) What does the acronym NPA stand for in banking terminology ?

A) Non-Performing Asset
B) National Payment Agency
C) New Public Account
D) Non-Payment Agreement

View Answer A) Non-Performing Asset

Explanation : NPA refers to loans or advances that are in default or in arrears.
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(Q) Which of the following rates is determined by the RBI to provide liquidity to the banking system ?

A) Bank Rate
B) Reverse Repo Rate
C) Marginal Standing Facility (MSF)
D) All of the above

View Answer D) All of the above

Explanation : All these rates are mechanisms used by the RBI to manage liquidity in the banking system.
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(Q) The 'Financial Literacy Week' is observed by the RBI to promote what ?

A) Banking services
B) Financial products
C) Financial literacy
D) Taxation awareness

View Answer C) Financial literacy

Explanation : The RBI observes Financial Literacy Week to promote awareness and understanding of financial products and services.
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(Q) Which of the following is the primary objective of the RBI's Developmental Role ?

A) Promoting foreign trade
B) Ensuring financial inclusion
C) Regulating monetary policy
D) Supervising the stock market

View Answer B) Ensuring financial inclusion

Explanation : The RBI plays a crucial role in ensuring financial inclusion by promoting access to banking services for all.
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(Q) What is the limit on the Foreign Direct Investment (FDI) in the banking sector as per RBI guidelines ?

A) 49%
B) 74%
C) 100%
D) 51%

View Answer A) 49%

Explanation : The Reserve Bank of India (RBI) allows up to 49% foreign direct investment (FDI) in the private sector banking sector through the automatic route. Investments above 49% require government approval.
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(Q) Which of the following acts is the RBI empowered to issue directives to commercial banks ?

A) Banking Regulation Act, 1949
B) RBI Act, 1934
C) Companies Act, 2013
D) Income Tax Act, 1961

View Answer A) Banking Regulation Act, 1949

Explanation : The Banking Regulation Act allows the RBI to regulate and supervise the banking sector in India.
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(Q) Which of the following is not a function of the RBI ?

A) Banker to the Government
B) Issuer of currency
C) Banker to Banks
D) Conducting elections

View Answer D) Conducting elections

Explanation : Conducting elections is not a function of the RBI; it is managed by the Election Commission of India.
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