Central Banking Quiz - Chap 1

What is the primary role of a central bank?

• To manage government budgets

• To regulate the stock market

• To provide loans to individuals

• To issue currency notes

In which year was the Reserve Bank of India established?

• 1949

• 1934

• 1950

• 1960

Which of the following is a function of a central bank?

• Managing real estate

• Providing personal loans

• Issuing credit cards

• Controlling inflation

What is the oldest central bank in the world?

• Federal Reserve System

• Bank of England

• Riksbank

• European Central Bank

Which economist defined a central bank as 'lender of the last resort'?

• R.C. Hawtrey

• Vera Smith

• Paul Samuelsson

• Dekock

What does the acronym LPG stand for in the context of the Reserve Bank of India?

• Liberalization, Privatization, Globalization

• Local, Public, Government

• Liquidity, Profitability, Growth

• Loans, Payments, Grants

Which of the following is NOT a factor contributing to the growth of central banking?

• Free flow of capital

• Increased government spending

• Integration of economies

• Rapid growth of the financial sector

What is one of the main objectives of monetary policy according to the RBI?

• Ensuring price stability

• Maximizing profits

• Reducing taxes

• Increasing government debt

Which of the following is a responsibility of the central bank?

• Regulating insurance companies

• Providing loans to businesses

• Maintaining foreign exchange reserves

• Setting interest rates for personal loans

What is the role of a central bank as a 'banker to the government'?

• To issue currency notes

• To regulate commercial banks

• To manage government accounts

• To provide personal loans