Reserve Bank of India

Question 1 : Which of the following is not an essential role of the RBI in the country?

a) Supervision of banks and the payment system.
b) Public debt management.
c) Currency management.
d) Inflation fighting.

Question 2: Which of the following institutions act as an issuer and custodian of currency in India?

a) Ministry of Finance.
b) Reserve Bank of India.
c) State Bank of India.
d) None of the above.

Question 3: Which of the following statements is correct with respect to the Reserve Bank of India?

a) The constitution of India renders an autonomous status to the RBI.
b) RBI act as a Merchant banker for both the state and the central government.
c) RBI has entered into an agreement with the government of India on targeting inflation.
d) Both b and c

Further Reading : RBI Governor

Answers:

1) b. The government of India has taken the  debt management function of the RBI on the recommendation of Financial Sector Reforms Legislative Commission  (FSRLC).
2) b
3) d. The RBI has no constitutional backing.