TN State Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Question 1.
What are the services included in Service business?
Answer:
Educational, Medical, Hospitality.

Question 2.
Write the meaning of ‘Bank’.
Answer:
Bank plays a vital role by providing the money required for their regular functioning and development.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Question 3.
Briefly explain about Central Bank.
Answer:
Every country has a Central Bank of its own which is called as Central bank. It is the apex bank and the statutory institution in the market of a country. The Central Bank occupies a central position in the monetary and banking system of the country and is the superior financial authority. In India, The Reserve Bank of India is the Central Bank of our country.

Question 4.
Mention the importance of banking services.
Answer:

  1. Banking is considered to be the nerve center of trade, commerce and business in a country.
  2. It plays a vital role in distributing the money for the development of trade, industry and commerce.
  3. Bank is an institution which deals in money and credit.

Question 5.
Explain the origin of RBI.
Answer:
The Imperial Bank of India carried out the note issue and other functions of the central bank. In 1926 the Hilton-Young Commission or the Royal Commission on Indian Currency and Finance (J. M. Keynes and Sir Ernest Cable were its members) made recommendation to create a central bank.

As a result, the RBI Act 1934 was passed and RBI launched in operations from April 1, 1935. RBI was established with a share capital of ₹ 5 crores divided into shares of ₹ 100 each fully paid up. The entire share capital was owned by private shareholders. Its head office was in Calcutta and moved to Mumbai in 1937.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Question 6.
Who are the persons involved in RBI administration?
Answer:

  1. One governor and four deputy governors appointed for a period of four years.
  2. Ten directors from various fields.
  3. Two Government officials.
  4. Four directors – one each from local boards.

Question 7.
Classify the various functions of Reserve Bank of India.
Answer:
A. Leadership and Supervisory Functions
B. Traditional Functions and
C. Promotional Functions.

A. Leadership and Supervisory Functions:

  1. India’s Representative in World Financial Institutions.
  2. Regulator and Supervisor of Indian Banking System.
  3. Monetary Authority.
  4. Closely Monitoring Economic Parameters.

B. Traditional Functions:

  1. Banker and Financial Advisor to the Government.
  2. Monopoly of Note Issue.
  3. Banker’s Bank.
  4. Controller of Credit and Liquidity.
  5. Quantitative Methods of Credit Control.

C. Promotional Functions:

  1. Nurturing Banking Habits among the Public.
  2. Grievance Settlement Measures.
  3. Agricultural Development.
  4. Promotion of Small Scale Industries.
  5. Facilitates Foreign Trade.
  6. Supports co-operative sector.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India 

Question 8.
Explain the organizational structure of RBI.
Answer:
The head office of the RBI is situated in Mumbai. This central office has 33 ‘ departments in 2017. It has four zonal offices in Mumbai, Delhi, Calcutta and Chennai functioning under local boards with deputy governors as their heads. It also has 19 regional offices and 11 sub-offices (2017). The RBI is governed by a Central Board of Directors. The 21 member board is appointed by the Government of India. It consists of;

  1. One governor and four deputy governors appointed for a period of four years,
  2. Ten directors from various fields
  3. Two Government officials
  4. Four directors – one each from local boards.

Question 9.
A Debate on demonetisation and – remonetisation.
Answer:
Demonetisation:

  1. To crop whip against black money.
  2. To drive out counterfeit currency in circulation.
  3. Formalization of cash dependent business
  4. Dismantling the financial strength of terrorism and naxalism. This leads to No black money.
    “All must pay correct taxes,
    All are equal. ”

Remonetisation:

  1. There were ₹ 17.118 billion value of ₹ 5000 and ₹ 1000 currency notes in circulation before demonetization.
  2. They consisted of around 2203 Crore: pieces of notes.
  3. Now remonetisation was carried out by issuing new ₹ 2000 and ₹ 500 currency notes to circulate.
    ‘All economic problems solved now”.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Question 10.
Know the Central Banks of Some other Countries. The Central Bank of Russia is the Bank of Russia. The Central Bank of Sri Lanka is the Central Bank of Sri Lanka. The Central Bank of the USA is ………(1)……. The Central Bank
of Pakistan is ……(ii)…….
Answer:

  • Central Bank of America is Federal Reserve.
  • Central Bank of Pakistan is the State Bank of Pakistan.

Question 11.
Mention the names of Central Banks in three other countries.
Answer:

  1. Central Bank of Bhutan – Bhutan.
  2. Reserve Bank of Australia – Australia
  3. Central Bank of China – China.
  4. Bank of Canada – Canada.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Question 12.
Understand the concepts monetary authority, banking system, financial system.
Answer:
Formal financial system of four segments. These are financial institutions, financial markets, financial instruments, and financial services.

Question 13.
Collection of names of RBJ Gove tors.
Answer:

  1. D. Subbarao. IAS – September 5, 2008
  2. Raghuram Rajan – September 4, 2013
  3. Urjit Patel – September 5, 2016.

Question 14.
Collection of photo copy of currencies and coins in India.

TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India 1

Answer:

  1. Currency rare Indian 2 rupees.
  2. Rare 1908 King Edward VII
  3. My coin collections two rupee.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Question 15.
Take up a recent newspaper clipping about . RBI such as the measures taken to reduce NPA. etc.
Answer:
Central banks are not known to be trigger happy. RBI is no exception. Indeed it has often been criticised for being much too cautious. Especially when it come to loosening Capital A/c.’

Question 16.
Arrange for a group discussion on customer grievances and the cases settled by Banking Ombudsman offices.
Answer:
The RBI today said it will bring about a customer grievances redressal mechanism for non-banking finance companies NBFCs by this month end.

Question 17.
Visit the RBI website www.rbi.org.in to read and have a discussion on any annual report, etc.
Answer:
The asset quality of the banking sector continued to be a concern during 2016-2017. In the aftermath of the assets quality review (AQR) undertaken by the RBI.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Choose the Correct Answer:

Question 1.
Which bank has the power to issue bank notes?
(a) Central bank
(b) Commercial bank
(c) Co-operative banks
(d) Foreign banks
Answer:
(a) Central bank

Question 2.
The Central bank of India is:
(a) PNB
(b) SBI
(c) ICICI
(d) RBI
Answer:
(d) RBI

Question 3.
The Reserve Bank of India commenced its operations from April 1,
(a) 1936
(b) 1935
(c) 1934
(d) 1933
Answer:
(b) 1935

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Question 4.
Bankers are not only dealers of money but also leaders in
(a) Economic development
(b) Trade development
(c) Industry development
(d) Service development
Answer:
(a) Economic development

Question 5.
Which of the following is not a function of a central bank?
(a) Guiding and regulating the banking system of a country
(b) Deal with the general public
(c) Acts essentially as Government banker
(d) Maintains deposit accounts of all other banks
Answer:
(b) Deal with the general public

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 10 Reserve Bank of India

Samacheer Kalvi 11th Commerce Notes Chapter 10 Reserve Bank of India

→ Reserve bank of India was established in 1935. It is the central bank of India. Central – bank of India is important in our economic development. RBI Only issue our currency notes. Its main function is act as a banker to the government and banker’s bank.

→ RBI controls money supply and credit maintain price stability in the country. RBI follows some credit control methods. RBI using two method. Quantitative credit control and qualitative credit control methods.

→ Every country have central banks. All banks work as a nerve centre of every business. All commercial banks financial requirements is fulfilled by reserve bank of India. Our country’s nerve centre is reserve bank of India

TN Board 11th Commerce Important Questions

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