UPSC 2021 › Indian Economy › Banking & Financial Sector

3 questions · 2021 · answers as per the UPSC key

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UPSC 2021 · Q1 · Indian Economy › Banking & Financial Sector · Save

Consider the following statements :

  1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
  2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
  3. The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
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Answer: (c) 1 and 3 only
UPSC 2021 · Q5 · Indian Economy › Banking & Financial Sector · Save

With reference to ‘Urban Cooperative Banks’ in India, consider the following statements :

  1. They are supervised and regulated by local boards set up by the State Governments.
  2. They can issue equity shares and preference shares.
  3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
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Answer: (b) 2 and 3 only
UPSC 2021 · Q9 · Indian Economy › Banking & Financial Sector · Save

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

(a) Diversion of resources to the purchase of real estate and investment in luxury housing
(b) Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.
(c) Large donations to political parties and growth of regionalism
(d) Loss of revenue to the State Exchequer due to tax evasion
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Answer: (d) Loss of revenue to the State Exchequer due to tax evasion