Banking Awareness Quiz: Currency

1. Who decided on the quantity of coins to be minted?

(1) The Government of India

(2) RBI

(3) Either 1 or 2

(4) All of the above

(5) None of the above

2. Which of the following methods is currently used in India to issue note?

(1) Fixed Fiduciary System

(2) Maximum Fiduciary System

(3) Roportional Reserve System

(4) Percentage Reserve System

(5) Minimum Reserve System

3. On march 1,1992, Reserve Bank of India announced a new system of exchange rates known as

(1) partial convertibility

(2) liberalized exchange rate system

(3) Either 1 or 2

(4) Both a and b

(5) Neither 1 nor 2

4. Which of the following statements is correct about soiled/mutilated note?

(1) All banks are authorized to accept soiled notes across their counters and pay the exchange vale

(2) Banks are expected to offer this service even to non-customers

(3) All public senor bank branches and currency chest branches of private sector banks are authorised to adjudicate and pay value in respect of mutilated notes

(4) The RBI has also authorised all Commercial Bank branches to treat certain notes in ‘two pieces’ as soiled notes and pay exchange value

(5) All of the above

5. For issuing notes, RBI has required to hold the minimum reserve of Rs. 200 crore of which not lesss than Rs…. crore to be hold in gold.

(1) 85

(2) 100

(3) 115

(4) 125

(5) 200

6. Under which Section of the Reserve Bank of India Act, the Reserve Bank has the sole right of note issue?

(1) 20

(2) 22

(3) 25

(4) 28

(5) 30

7. At present, the RBI issue notes in the denominations of Rs

(1) 1, 2, 5, 10, 20, 50, 100 and 500

(2) 1, 2, 5, 10, 20, 50, 500 and 1000

(3) 2, 5, 10, 20, 50, 100, 500 and 1000

(4) 2, 5, 10, 20, 50, 100, 1000 and 10000 only

(5) 5, 10, 20, 50, 100 and 500

8. The one-rupee note bears the signature of ____________.

(1) RBI Governor

(2) Deputy Governor

(3) Finance Secretary

(4) Finance Minister 

(5) None of these

9. Any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable is a/an  

(1) mutilated note

(2) imperfect note

(3) soiled note

(4) mismatched note

(5) none of these

10. In India, which among the following is/are a part of Legal Tender Money?

(1) Both coins and currency notes

(2) Both coins and bank drafts

(3) Both currency notes and SDRs

(4) Only currency notes issued by RBI

(5) None of these

Answers :
1-A
2-E
3-D
4-E
5-C
6-B
7-C
8-c
9-B
10-A