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Money, Banking and the RBI – GK Quiz with Answers – Level 2

Medium-level questions on RBI tools and their effects, the Monetary Policy Committee, high powered money, legal tender, RBI history and Self Help Groups.

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Questions, answer key and solutions.

Questions
50
Duration
30 min
Marks
50

Negative marking

Attempts
100
Access
Free
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Normal practice, or a Simulated test

Both use the same questions. Normal practice is untimed and needs no account: choose an option and the answer and solution appear at once. The Simulated test is the real computer-based format, with one 30-minute clock, a question palette and full screen, and your score, the key and the solutions arrive when you submit.

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How the two modes differ
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Normal

Untimed

Every question on one page, loading as you scroll. Choose an option and see straight away whether it was right.

  • No timer. Nothing to start and nothing to submit. Stop whenever you like.
  • Answered as you choose. Tap an option and it is marked at once, with the correct answer shown.
  • Solutions in place. The explanation, and the video where one has been added, sit under the question.
  • Open to guests. Normal practice needs no sign-in.
Real exam conditions

Simulated

Timed CBT

The computer-based test format: one clock, a question palette, and a score the moment you submit.

  • A clock that does not pause. 30 minutes from the moment you begin, and the paper is submitted for you when it reaches zero.
  • Question palette. Answered, not answered and marked for review, section by section, as the real interface has it.
  • Full screen, proctored. The test takes over the screen; leaving it three times submits the paper.
  • Answers hidden until you submit. The key, the explanations and your score all arrive together at the end.

About this test

RBI Monetary Policy and Banking GK Practice Quiz: Medium Level 2

This Level 2 set builds your understanding of how the Reserve Bank of India controls money supply and how the banking system works. It moves beyond definitions to effects of RBI tools, the Monetary Policy Committee, measures of money and RBI history in sequence. Aptitude360 gives an explanation with each question.

What the Money, Banking and RBI Level 2 set covers

  • Functions of money, barter and why currency is fiat money
  • Legal tender compared with cheques and demand deposits
  • Effects of repo rate changes and open market operations on loans and money supply
  • Composition of the Monetary Policy Committee
  • High powered money and the narrow money measure
  • Chronology of RBI history, nationalisation phases and demonetisation
  • Collateral, terms of credit, Self Help Groups and the Grameen Bank

Monetary policy concepts worth revising

  • High powered money is currency with the public plus vault cash of banks plus deposits held with the RBI
  • Raising the repo rate makes borrowing costlier and slows credit growth
  • Selling securities and raising CRR both reduce money supply
  • The RBI issues notes on behalf of the central government; commercial banks do not issue currency

Preparation tips for medium-level banking questions

  • For every RBI tool, practise saying the direction of its effect on money supply in one line
  • Spot the odd one out by separating quantitative tools from qualitative ones like moral suasion
  • Arrange RBI and banking events in order until you can do it without notes

Who should take this Level 2 quiz

Students who have cleared the basics of money and banking and want medium-level practice with statement, matching and chronology questions.

FAQs about Money, Banking and the RBI – GK Quiz with Answers – Level 2

What happens when the RBI increases the repo rate?
Banks pay more to borrow from the RBI, so loans become costlier. This reduces borrowing and spending, which helps control inflation.
What is the Monetary Policy Committee of the RBI?
It is the body that sets the policy repo rate. It has six members, three from the RBI and three appointed by the central government, and is chaired by the RBI Governor.
What is high powered money?
High powered money is the currency held by the public plus the cash reserves of banks, including their deposits with the RBI. It is also called reserve money.
Is a cheque legal tender in India?
No. A cheque is an instruction to a bank to pay from a demand deposit, so a person can refuse it. Currency notes and coins issued under law are legal tender.

Test structure

How the paper is split, and how long each part runs. A section you have finished cannot be returned to.

SectionQuestionsTime
Money, Banking and the RBI GK Level 25030 min

Marking & rules

Total marks
50 across 50 questions.
Negative marking
A wrong answer costs marks. Leaving a question unanswered costs nothing.
Attempts
100 in total. An attempt is spent the moment you begin one.

What you get when you submit

The analysis is ready the moment you submit the paper.

Score and accuracy

Marks, percentage, right, wrong and skipped, and the time you took.

Section by section

The same figures for each section, so a weak one cannot hide in an average.

The full answer key

Every question with your answer, the right one, the working, and the video where there is one.

Where you stand

Your score against the spread of everyone else who has sat this test.

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