🎯 Practice daily MCQs to improve your finance knowledge
Q1. What is the main role of RBI?
A. Printing books
B. Controlling money supply
C. Selling products
D. Managing roads
Answer: B
Explanation: RBI controls money supply, regulates banks, and maintains financial stability in the economy.
Q2. What does RBI stand for?
A. Reserve Bank of इंडिया
B. Reserve Banking Institute
C. Reserve Bank of India
D. Regional Bank of India
Answer: C
Explanation: RBI stands for Reserve Bank of India, which is the central bank of the country.
Q3. What is monetary policy?
A. Tax system
B. Government spending plan
C. Control of money supply
D. Investment plan
Answer: C
Explanation: Monetary policy is used by RBI to control money supply and inflation.
Q4. What is repo rate?
A. Interest on savings
B. Loan rate for customers
C. Rate at which RBI lends to banks
D. Tax rate
Answer: C
Explanation: Repo rate is the rate at which RBI lends money to commercial banks.
Q5. What happens when repo rate increases?
A. Loans become cheaper
B. Loans become expensive
C. Savings decrease
D. Inflation increases
Answer: B
Explanation: When repo rate increases, borrowing becomes costly and reduces spending.
Q6. What is reverse repo rate?
A. Rate banks charge customers
B. Rate RBI borrows from banks
C. Loan interest rate
D. Tax rate
Answer: B
Explanation: Reverse repo rate is the rate at which RBI borrows money from banks.
Q7. What is inflation?
A. Decrease in prices
B. Increase in prices
C. No change
D. Fixed price
Answer: B
Explanation: Inflation means a rise in prices of goods and services over time.
Q8. Which tool is used by RBI to control inflation?
A. Salary
B. Repo rate
C. Tax
D. Shopping
Answer: B
Explanation: RBI uses repo rate and other tools to manage inflation and liquidity.
Q9. What is CRR (Cash Reserve Ratio)?
A. Bank profit
B. Money banks keep with RBI
C. Loan amount
D. Interest rate
Answer: B
Explanation: CRR is the portion of deposits that banks must keep with RBI as reserve.
Q10. Why is RBI important?
A. To sell goods
B. To manage schools
C. To control banking system
D. To build roads
Answer: C
Explanation: RBI ensures stability of the banking system and regulates financial activities.
Do you think RBI policies affect your daily life (like loan EMI or inflation)? Comment below!
👉 Check out: Top 10 Banking Awareness MCQs with Answers (2026)