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RBI Functions Quiz

Practice quiz on RBI Functions (Banking Awareness). 5 real exam questions.

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About This Quiz

Practice quiz on RBI Functions (Banking Awareness). 5 real exam questions. RBI Functions Quiz is a free, 25-minute, 25-mark practice quiz on AajExam rated at medium difficulty, designed to help candidates preparing for SSC, UPSC, Banking, Railway and State PSC government competitive exams sharpen their command of RBI Functions (Banking Awareness). Every question on this quiz ships with a detailed step-by-step solution so you don't just learn the right answer — you learn the reasoning and shortcuts top scorers use to crack similar questions faster on the actual exam day. Why RBI Functions Quiz matters in your preparation: government exam-conducting bodies repeatedly draw questions from the same chapters and the same skill-clusters across recruitment cycles. By attempting focused topic-wise quizzes like this one, you build pattern recognition — the ability to spot which formula, rule or trick applies the moment you see a question. Toppers consistently report that 5-10 quizzes on a single topic delivers more exam-day score gain than 20+ unfocused full-length mocks, because targeted drilling exposes your specific sub-topic weaknesses with surgical precision. How to use this quiz effectively: attempt it in one sitting under the 25-minute timer, without referring to notes or external resources — simulate exam-day conditions exactly. After submission, review the auto-generated analytics to see your accuracy, time per question and section-wise performance. Then go through every wrong and skipped question with the explanation, mentally tagging the underlying concept rather than just memorising the answer. Revisit this quiz after 7-10 days; your second attempt should be 15-20% faster with noticeably better accuracy. Bookmark this page and revisit weekly as we add new quizzes on related topics. AajExam quiz design principles: every quiz on the platform is curated by subject experts using the actual question formats, difficulty distributions and time pressures of the target government exams. We deliberately avoid generic "textbook" questions in favour of exam-replicating ones. Solutions are written in plain English (and Hindi where source material was bilingual), with step-by-step working for quantitative problems, grammar rules for English questions, and direct reference statements for general awareness items. Performance analytics after each attempt include accuracy, attempt rate, time spent per question, and an estimated all-India percentile so you know exactly where you stand against other candidates. This quiz is completely free to attempt. You only need a free AajExam account to track your performance across attempts, view detailed solutions and unlock the platform-wide analytics dashboard. The platform is mobile-friendly and works seamlessly on smartphones, tablets and desktops — so you can sharpen your RBI Functions (Banking Awareness) skills in any spare 15-minute window.

RBI Functions Quiz — Questions with Solutions

All 25 questions from this quiz with the correct answer and explanation. Attempt them yourself first, then open each solution to check your reasoning.

  1. Q1.Which rate does RBI use to borrow money from banks?

    • A.Repo Rate
    • B.Reverse Repo Rate
    • C.Bank Rate
    • D.MSF Rate
    Show answer

    Answer: B. Reverse Repo Rate

    Reverse Repo Rate is the rate paid by RBI to banks when it borrows from them.

  2. Q2.Which rate is used by RBI to lend money to banks for overnight liquidity?

    • A.MSF
    • B.Repo
    • C.Reverse Repo
    • D.Bank Rate
    Show answer

    Answer: A. MSF

    Marginal Standing Facility (MSF) is the overnight borrowing window for banks.

  3. Q3.RBI regulates which market?

    • A.Capital Market
    • B.Money Market
    • C.Commodity Market
    • D.Stock Market
    Show answer

    Answer: B. Money Market

    RBI regulates money market instruments.

  4. Q4.The headquarters of RBI is located in:

    • A.New Delhi
    • B.Kolkata
    • C.Mumbai
    • D.Chennai
    Show answer

    Answer: C. Mumbai

    RBI HQ is in Mumbai.

  5. Q5.Where is the headquarters of RBI located?

    • A.Delhi
    • B.Kolkata
    • C.Mumbai
    • D.Chennai
    Show answer

    Answer: C. Mumbai

    Reserve Bank of India HQ is in Mumbai.

  6. Q6.The Reserve Bank of India (RBI) was established in which year?

    • A.1935
    • B.1947
    • C.1950
    • D.1969
    Show answer

    Answer: A. 1935

    RBI was established on 1 April 1935 under the RBI Act, 1934.

  7. Q7.Where is the headquarters of the RBI located?

    • A.New Delhi
    • B.Mumbai
    • C.Kolkata
    • D.Chennai
    Show answer

    Answer: B. Mumbai

    RBI's central office is in Mumbai.

  8. Q8.RBI performs the role of 'lender of last resort' for:

    • A.The general public
    • B.Commercial banks
    • C.Foreign investors
    • D.State governments
    Show answer

    Answer: B. Commercial banks

    RBI lends to commercial banks facing liquidity crises as the lender of last resort.

  9. Q9.The Monetary Policy Committee (MPC) of RBI primarily decides on the:

    • A.Income tax rate
    • B.Repo rate
    • C.GST rate
    • D.Currency design
    Show answer

    Answer: B. Repo rate

    The MPC sets the policy repo rate.

  10. Q10.Who was the first Governor of the RBI?

    • A.Osborne Smith
    • B.C.D. Deshmukh
    • C.Raghuram Rajan
    • D.Bimal Jalan
    Show answer

    Answer: A. Osborne Smith

    Sir Osborne Smith was the first Governor of RBI (1935-37).

  11. Q11.Which function of RBI involves issuing currency notes?

    • A.Note-issuing authority
    • B.Tax collection
    • C.Loan sanctioning
    • D.Insurance regulation
    Show answer

    Answer: A. Note-issuing authority

    RBI has the sole authority to issue currency notes in India (except Re. 1 notes/coins).

  12. Q12.CRR stands for:

    • A.Cash Reserve Ratio
    • B.Credit Rating Ratio
    • C.Capital Reserve Rule
    • D.Currency Reserve Rate
    Show answer

    Answer: A. Cash Reserve Ratio

    CRR is the minimum percentage of deposits banks must keep with RBI.

  13. Q13.SLR stands for:

    • A.Statutory Liquidity Ratio
    • B.Standard Lending Ratio
    • C.State Loan Rate
    • D.Secured Liability Ratio
    Show answer

    Answer: A. Statutory Liquidity Ratio

    SLR is the minimum percentage of deposits banks must maintain in liquid assets.

  14. Q14.The repo rate is the rate at which:

    • A.RBI lends money to commercial banks
    • B.Banks lend money to RBI
    • C.Banks lend to the public
    • D.Government lends to RBI
    Show answer

    Answer: A. RBI lends money to commercial banks

    Repo rate is the rate at which RBI lends short-term funds to commercial banks.

  15. Q15.The reverse repo rate is the rate at which:

    • A.RBI borrows money from commercial banks
    • B.Banks borrow from the public
    • C.RBI lends to the public
    • D.Government borrows from banks
    Show answer

    Answer: A. RBI borrows money from commercial banks

    Reverse repo is the rate at which RBI borrows funds from commercial banks.

  16. Q16.Which of the following does RBI directly regulate?

    • A.Stock exchanges
    • B.Commercial banks
    • C.Insurance companies
    • D.Mutual fund houses
    Show answer

    Answer: B. Commercial banks

    RBI is the regulator of commercial banks; SEBI regulates stock markets and IRDAI regulates insurance.

  17. Q17.Which committee recommended the establishment of the RBI?

    • A.Hilton Young Commission
    • B.Narasimham Committee
    • C.Raghuram Rajan Committee
    • D.Tarapore Committee
    Show answer

    Answer: A. Hilton Young Commission

    The Hilton Young Commission (Royal Commission on Indian Currency) recommended setting up RBI.

  18. Q18.The Bank Rate is also known as the:

    • A.Discount rate
    • B.Prime rate
    • C.Base rate
    • D.MCLR
    Show answer

    Answer: A. Discount rate

    Bank Rate is also called the discount rate.

  19. Q19.The RBI was nationalised in which year?

    • A.1935
    • B.1949
    • C.1955
    • D.1969
    Show answer

    Answer: B. 1949

    RBI was nationalised in 1949, a year after India's independence.

  20. Q20.Which of the following is NOT a function of the RBI?

    • A.Issuing currency
    • B.Regulating banks
    • C.Collecting income tax
    • D.Managing forex reserves
    Show answer

    Answer: C. Collecting income tax

    Income tax is collected by the Income Tax Department, not RBI.

  21. Q21.Which is the apex institution for agricultural and rural credit in India?

    • A.NABARD
    • B.SIDBI
    • C.RBI
    • D.EXIM Bank
    Show answer

    Answer: A. NABARD

    NABARD is the apex body for rural and agricultural credit.

  22. Q22.Which animal features in the RBI's official emblem?

    • A.Lion
    • B.Tiger
    • C.Elephant
    • D.Panther
    Show answer

    Answer: B. Tiger

    The RBI emblem depicts a tiger and a palm tree.

  23. Q23.The Governor of RBI is formally appointed by the:

    • A.President of India
    • B.Government of India
    • C.Parliament
    • D.Supreme Court
    Show answer

    Answer: B. Government of India

    The RBI Governor is appointed by the Government of India (Union Cabinet's Appointments Committee).

  24. Q24.Which body decides India's key policy interest rates?

    • A.Monetary Policy Committee
    • B.Banking Regulation Committee
    • C.Currency Committee
    • D.Credit Policy Committee
    Show answer

    Answer: A. Monetary Policy Committee

    The Monetary Policy Committee (MPC) of RBI decides key policy rates.

  25. Q25.The Banking Regulation Act, under which RBI supervises banks, was enacted in:

    • A.1934
    • B.1949
    • C.1955
    • D.1961
    Show answer

    Answer: B. 1949

    The Banking Regulation Act was passed in 1949.

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Frequently Asked Questions

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Yes. You can attempt this quiz as many times as you like. Each attempt is recorded separately so you can track improvement in score, accuracy and time-management.

Which government exams does this quiz prepare me for?

RBI Functions questions appear regularly in SSC CGL, CHSL, MTS, GD; IBPS PO, Clerk; SBI PO, Clerk; RRB NTPC, Group D; UPSC prelims and most State PSC exams. The specific weightage varies by exam — check the exam pattern on the corresponding AajExam exam page for details.