Advertisements
Advertisements
Question
Identify the function of RBI as indicated by the following image.
Options
Banker to the banks
Fiscal agent to the government
Credit control
Custodian of foreign exchange reserve
Advertisements
Solution
Credit control
Explanation:
The picture shows the RBI manipulating interest rates (raising it by 25 basis points), indicating the Reserve Bank of India's credit control function. The RBI regulates the money supply and controls inflation or deflation in the economy using credit control tools such as interest rate adjustments, reserve ratios, and open market operations.
APPEARS IN
RELATED QUESTIONS
- In the realm of economic development, how does the role of entrepreneurs impact the overall growth and stability of a nation.
Which function of RBI is indicated by the above image?
Which of the following is/are the function(s) of central bank.
______ is the main function of central bank.
Identify which of the following is not the function of the central bank?
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.
