Banking and Finance Current Affairs MCQs for Competitive Exams

1.

The expansion of the Digital Rupee pilot typically involves:

A Issuing the e-Rupee to all citizens directly without any intermediaries.

B Testing the e-Rupee in wholesale and/or retail segments with select banks and users.

C Making the e-Rupee the sole legal tender in India.

D Allowing private companies to issue their own digital currencies.

2.

Which of the following is a key benefit of the Digital Rupee pilot expansion?

A To replace all physical cash transactions immediately.

B To explore the potential of blockchain technology in financial transactions and improve efficiency.

C To increase the circulation of foreign currencies.

D To reduce the role of commercial banks in the payment system.

3.

The Digital Rupee (e-Rupee) is a form of:

A Cryptocurrency issued by private entities.

B Central Bank Digital Currency (CBDC).

C A digital wallet for storing fiat currency.

D A new form of government bond.

4.

An increase in the Cash Reserve Ratio (CRR) by the RBI typically leads to:

A An increase in the money supply and liquidity.

B A decrease in the money supply and liquidity.

C No significant impact on liquidity.

D An increase in inflation.

5.

Which of the following tools is commonly used by the RBI for liquidity management?

A Fiscal Deficit Management

B Open Market Operations (OMOs)

C Government Debt Issuance

D Capital Gains Tax

6.

What is the primary objective of the Reserve Bank of India's enhanced liquidity management framework?

A To increase inflation by injecting more money into the economy.

B To ensure adequate liquidity in the banking system and maintain financial stability.

C To reduce the repo rate to encourage borrowing by commercial banks.

D To facilitate the smooth functioning of the foreign exchange market.

Banking & Finance MCQs - 2026-06-03