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Which of the following is a function of the Reserve Bank of India (RBI)?

Practice Questions

Q1
Which of the following is a function of the Reserve Bank of India (RBI)?
  1. Issuing currency
  2. Collecting taxes
  3. Managing public debt
  4. Regulating stock markets

Questions & Step-by-Step Solutions

Which of the following is a function of the Reserve Bank of India (RBI)?
  • Step 1: Understand what the Reserve Bank of India (RBI) is. It is the central bank of India.
  • Step 2: Know that central banks have specific functions, such as managing currency, controlling inflation, and regulating banks.
  • Step 3: Identify one of the key functions of the RBI, which is to issue currency in India.
  • Step 4: Recognize that issuing currency means the RBI is responsible for creating and distributing money in the country.
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