RBI Functions and Autonomy — MCQ Practice
Interactive MCQ Practice
Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.
Which of the following statements about RBI's autonomy is/are correct? 1. The government has never used Section 7 of RBI Act to issue directions 2. MPC decisions require unanimous consensus of all six members 3. RBI Governor can be removed only through impeachment process 4. External MPC members are eligible for reappointment after their term
The Monetary Policy Committee (MPC) was established to enhance RBI's autonomy. Which of the following features best explains this enhancement? 1. Governor's veto power over committee decisions 2. Majority voting system with external members 3. Fixed tenure for external members with no reappointment 4. Direct appointment of all members by RBI
Consider the following about RBI's banking supervision powers: 1. Section 35A of Banking Regulation Act allows RBI to issue binding directions 2. PCA framework is mandatory and cannot be waived by government 3. RBI can supersede bank boards without government approval 4. Cooperative banks are outside RBI's supervisory jurisdiction
Which of the following best describes the 'constrained autonomy' model of RBI?
The 2018 RBI-government conflict leading to Urjit Patel's resignation primarily involved disagreements over: 1. Relaxation of PCA restrictions on public sector banks 2. Quantum of surplus transfer to government 3. Liquidity support to NBFCs after IL&FS crisis 4. Implementation of demonetization policy