Which of the following are functions of the Reserve Bank of India? A. Bank of issue B. Banker's bank…
Under the Reserve Bank of India Act, 1934, the core central banking functions of the RBI include acting as the sole Bank of Issue for currency notes (A), serving as Banker's…
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Which of the following are functions of the Reserve Bank of India?
A. Bank of issue
B. Banker's bank and lender of the last resort
C. Regulator of fiscal policy
D. Controller of credit E Custodian of foreign exchange reserves Choose the most appropriate answer from the option given below.
Answer and explanation
Correct answer B
Under the Reserve Bank of India Act, 1934, the core central banking functions of the RBI include acting as the sole Bank of Issue for currency notes (A), serving as Banker's Bank and Lender of the Last Resort (B), acting as Controller of Credit and monetary policy (D), and serving as Custodian of the nation's Foreign Exchange Reserves (E). Fiscal policy (C) is formulated by the Union Ministry of Finance, not the RBI.
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UGC NET Commerce