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Topic Central banking
Asked 3 times in CSE over 30 years (1991–2021), peaking in 2021.
Key insights
- Most tested in CSE — 3 of 3 PYQs
- Most asked in 2021
- Recurs across 2 years (1991–2021)
Across exams
CSE · 3How the concept evolved
Rising — more than half its appearances (2 of 3) are since 2016.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CSE2021
Consider the following statements
- The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government
- Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest
- 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
✓ Correct answer: (C)
Economy › Money/Banking/Finance
CSE2021
In India, the central bank's function as the 'lender of last resort' usually refers to which of the following?
- Lending to trade and industry bodies when they fail to borrow from other sources
- Providing liquidity to the banks having a temporary crisis
- Lending to governments to finance budgetary deficits
Select the correct answer using the code given below.
- A 1 and 2
- B 2 only ✓
- C 2 and 3
- D 3 only
✓ Correct answer: (B)
Economy › Money/Banking/Finance
CSE1991
Which one of the following functions of the Reserve Bank of India is not performed by the other banks?
- A Making advances to agriculturists
- B Dealing in foreign exchange
- C Industrial Refinancing
- D Acting as the banker to the Government ✓
✓ Correct answer: (D)
Economy › Money/Banking/Finance
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