Banking & Finance MCQs: RBI, Digital Rupee, SEBI Regulations

1.

Which regulatory body oversees the stock market in India?

A Reserve Bank of India (RBI)

B Securities and Exchange Board of India (SEBI)

C Insurance Regulatory and Development Authority (IRDAI)

D Pension Fund Regulatory and Development Authority (PFRDA)

2.

Why is SEBI proposing stricter norms for HFT?

A To increase the number of retail investors

B To enhance market integrity and prevent unfair advantages

C To ban all algorithmic trading in India

D To reduce the tax on stock market transactions

3.

What is High-Frequency Trading (HFT) primarily characterized by?

A Long-term investment strategies

B Use of sophisticated algorithms to execute trades in microseconds

C Manual trading by retail investors

D Trading only in government bonds

4.

Which of the following is a key feature of the e-Rupee (Retail) pilot?

A It earns interest like a savings account

B It is a token-based system that offers anonymity similar to physical cash

C It can only be used for international trade

D It is mandatory for all citizens to use

5.

What is the main difference between the e-Rupee and UPI-based transactions?

A e-Rupee is a direct liability of the RBI, whereas UPI is a payment system

B UPI is digital currency, e-Rupee is not

C There is no difference

D e-Rupee requires internet, UPI does not

6.

The Digital Rupee (e-Rupee) introduced by the RBI is a form of:

A Cryptocurrency

B Central Bank Digital Currency (CBDC)

C Private Digital Asset

D Foreign Currency

7.

Which committee is responsible for fixing the benchmark policy interest rate in India?

A Financial Stability and Development Council

B Monetary Policy Committee

C Public Accounts Committee

D Economic Advisory Council

8.

What is the primary objective of the RBI's monetary policy framework in India?

A Maintaining fiscal deficit

B Price stability while keeping in mind the objective of growth

C Regulating stock market volatility

D Managing foreign exchange reserves only

9.

As of the latest 2026 Monetary Policy Committee (MPC) review, which tool is primarily used by the RBI to manage liquidity in the banking system?

A Repo Rate

B Statutory Liquidity Ratio

C Cash Reserve Ratio

D Marginal Standing Facility

Banking & Finance MCQs - 2026-09-21