UPSC Prelims Marathon 20th January – Banking in India – 2025

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We are posting prelims marathon MCQs for today. In this initiative, you can attempt 10 subjective MCQs daily. Daily Quiz UPSC Prelims Marathon 20th January Banking in India

For schedule, refer to the archive link given below. Best UPSC institute In Delhi,

For the Prelims Marathon archive – click here,

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Marking Pattern

Correct Answer : 2

Wrong Answer : -0.66

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Time Left :5

Question No. 1

Which of the following activity/activities is/are taken by NBFCs (Non-Banking Financial Companies)?
1.Making loans and advances
2.Hire purchase
3.Accepting deposits
Select the correct answer from below given codes:

AOnly one

BOnly two

COnly three

DNone

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Question No. 2

Under which of the following act, Reserve Bank of India was set up?

AGovernment of India Act, 1858

BRBI Act, 1919

CRBI Act, 1934

DNationalization of Banks Act, 1969

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Question No. 3

Which of the following is/are function/s of Reserve Bank of India?
1.Issuing agency of the currency and coins including one rupee currency
2.Distributing agent for currency and coins issued by the state governments.
3.Banker of the government.
Select the correct answer from below given codes:

AOnly one

BOnly two

COnly three

DNone

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Question No. 4

“It is the ratio of the total deposits of a bank in India which is kept with the RBI in the form of cash”?

ABank Rate

BStatutory liquidity ratio

CCash Reserve Ratio

DMarginal Standing Facility

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Question No. 5

Which of the following is/are come/s under the definition of Statutory Liquidity Ratio (SLR)?
1.Cash
2.Debentures
3.Treasury Bills of the Government of India
Select the correct answer from below given codes:

AOnly one

BOnly two

COnly three

DNone

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Question No. 6

Who among the following institution/s borrow through Bank Rate is/are?
1.Regional Rural Banks
2.Cooperative Banks
3.State governments
Select the correct answer from below given codes:

AOnly one

BOnly two

COnly three

DNone

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Question No. 7

Consider the following statements regarding “Repo Rate”:
1.It is the rate of interest the RBI charges from its clients on their long-term borrowing.
2.The Call Money Market of India operates at this rate.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Question No. 8

Consider the following statements regarding “reverse repo rate”:
1.It is the rate of interest the RBI pays to its clients who offer short-term loans to it.
2.It was started in November 2004 as part of liquidity Adjustment Facility (LAF) by the RBI.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Question No. 9

Under which of the following “banks can borrow overnight up to 1 per cent of their net demand and time liabilities (NDTL) from the RBI, at the interest rate 1 per cent higher than the current repo rate”?

ABank Rate

BOpen Market Operations

CMarket Sterilization Scheme

DMarginal Standing Facility

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Question No. 10

Consider the following statements regarding “Open Market Operations”:
1.It is conducted by the department of financial services.
2.Individuals are not allowed to participate in this market.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Total Number of Questions :

Total Not Attempted Questions :

Total Correct :

Total Wrong :

For schedule, refer to the archive link given below. Best UPSC institute In Delhi,

For the Prelims Marathon archive – click here,