Q180. In which year did the RBI announce the Clean Note Policy?
[SSC MTS (2020 cycle), 7 Oct Shift 3 2021]
A. 1995
B. 1999
C. 1992
D. 1997
Answer: (B) 1999
Explanation: RBI initiated the Clean Note Policy in 1999 to improve the physical quality of circulating currency. Its measures included discouraging issue of soiled banknotes and reducing practices that damage banknotes in handling.
Q179. What is the prescribed term of a nominated RBI Central Board director under the ordinary framework?
[SSC MTS (2020 cycle), 13 Oct Shift 3 2021]
A. Five years
B. Six years
C. Three years
D. Four years
Answer: (D) Four years
Explanation: Government-nominated members of RBI’s Central Board generally serve a four-year term, subject to the relevant statutory arrangements. The board provides overall direction, while the Governor and Deputy Governors perform executive central-banking functions.
Q178. Who was serving as the RBI Governor in August 2020?
[SSC MTS (2020 cycle), 27 Oct Shift 2 2021]
A. Shaktikanta Das
B. Manish Sabharwal
C. Natarajan Chandrasekaran
D. Mahesh Kumar Jain
Answer: (A) Shaktikanta Das
Explanation: Shaktikanta Das became the twenty-fifth Governor of the Reserve Bank of India in December 2018 and remained in office in August 2020. The correct response concerns the historical date, not the current incumbent.
Q177. Which banking function is associated with a customer pledging collateral?
[SSC MTS (2020 cycle), 14 Oct Shift 3 2021]
A. Accepting deposits
B. Portfolio management
C. Collection of cheques
D. Granting loans and advances
Answer: (D) Granting loans and advances
Explanation: Collateral is pledged against a bank loan or credit facility. It gives the lender security if contractual repayment fails, and therefore relates principally to lending rather than cash deposits or cheque collection.
Q176. What is the written instruction by which a customer directs a bank to pay a stated amount to a named payee?
[SSC MTS (2020 cycle), 11 Oct Shift 1 2021]
A. Cash
B. Cheque
C. Passbook
D. Currency note
Answer: (B) Cheque
Explanation: A cheque is a negotiable instrument drawing on an account with a bank and directing payment. The drawer issues it, the drawee bank pays on valid presentation, and the named person is the payee.
Q175. What is the IMF–World Bank programme that assesses financial-system soundness and development issues called?
[SSC MTS (2020 cycle), 11 Oct Shift 2 2021]
A. Financial Sector Assessment Program
B. Developing Economies Financial Audit Scheme
C. Finance and Socioeconomic Audit Scheme
D. Evaluation and Monitoring of Financial Sector
Answer: (A) Financial Sector Assessment Program
Explanation: The Financial Sector Assessment Program, jointly developed by IMF and World Bank, examines financial-sector strengths, vulnerabilities and development needs. It supports assessments of systemic resilience and the policy and supervisory environment.
Q174. In which year was NABARD established?
[SSC MTS (2020 cycle), 26 Oct Shift 3 2021]
A. 1972
B. 1952
C. 1962
D. 1982
Answer: (D) 1982
Explanation: The National Bank for Agriculture and Rural Development began operating on 12 July 1982 under legislation enacted in 1981. It promotes rural credit, development and refinancing for agriculture and associated activities.
Q173. If ₹1,00,000 is withdrawn in cash from a demand-deposit bank account, what is the immediate impact on aggregate money supply?
[UPSC CSE Prelims 2020]
A. It falls by ₹1,00,000
B. It rises by ₹1,00,000
C. It rises by more than ₹1,00,000
D. It remains unchanged
Answer: (D) It remains unchanged
Explanation: The cash withdrawal increases currency with the public while reducing demand deposits by the same amount. Because both items belong to relevant money aggregates, the immediate aggregate does not change; only the composition of money holdings changes.
Q172. What does a higher interest-coverage ratio normally signal to a lender?
[UPSC CSE Prelims 2020]
A. Greater capacity to pay interest
B. Automatically greater insolvency risk
C. No information about the borrower
D. A compulsory rise in tax payments
Answer: (A) Greater capacity to pay interest
Explanation: Interest coverage compares earnings available before interest and taxes with interest expense. A higher ratio normally suggests a stronger cushion for debt-servicing obligations. Banks can examine its level and trend to judge both present and emerging credit risk.
Q171. Which policy choice helps shield a country from a global financial shock: avoiding short-term foreign borrowing, greater foreign-bank exposure, or unrestricted capital convertibility?
[UPSC CSE Prelims 2020]
A. Reducing reliance on short-term foreign debt only
B. All three together
C. Unrestricted convertibility only
D. Greater foreign-bank exposure only
Answer: (A) Reducing reliance on short-term foreign debt only
Explanation: Heavy short-term external borrowing makes an economy vulnerable when lenders abruptly refuse to roll over loans. Lower dependence reduces sudden capital-flight risk. More external financial linkages and unrestricted capital-account flows may increase, rather than remove, such exposure.
