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प्रश्न
Explain the functions of the RBI with respect to the following:
- Custodian of foreign exchange reserves.
- Monopoly of note issue.
- Clearing house facility.
- Banker and fiscal agent to the government.
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उत्तर
- Custodian of foreign exchange reserves: The Reserve Bank of India manages foreign exchange reserves to ensure market stability. The RBI intervenes in the foreign exchange market to keep rates within certain levels.
- Monopoly of note issue: The Reserve Bank of India is solely responsible for issuing currency notes. The RBI manages currency supply to keep prices stable and inflation under control.
- Clearing house facility: RBI provides clearing house facilities to facilitate the settlement of inter bank transactions i.e payments through cheques, drafts etc.
- Banker and fiscal agent to the government: The RBI supervises government transactions and accounts. It advises the government on monetary and fiscal policies. The RBI issues securities to the public to meet the government's financial needs.
APPEARS IN
संबंधित प्रश्न
Assertion (A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.
Reason (R): The Central bank acts as a Clearing house for the transfer and settlement of mutual claims of commercial banks.
The RBI settles claims of other commercial banks by a process of book entries. It helps to stabilize the banking system in the economy. Which function of the Central bank is explained here.
The Central bank is having the authority to regulate the amount of money supply in the economy.
Based on the above explain the following.
- Credit Rationing
- CRR
- Regulation of Margin Requirements
- Bank Rate
Central bank is the ______ of the country's foreign currency reserves.
The main advantage of giving the monopoly right of note issue to the central bank is that it ______.
Which of the following statements are true?
- The Reserve Bank of India is the central bank of the country.
- All currency notes (except one rupee note) bear the signature of Governor, RBI.
- The objective of the Reserve Bank of India is to earn profit.
Explain the following function of the central bank of a country.
Developmental functions.
Discuss the role of the Central Bank as the fiscal agent to the government.
Explain the banker’s bank function of the Central Bank.
Name the institution that enjoys the monopoly of note issue in India.
