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Which of the following is NOT a function of the RBI?

Practice Questions

Q1
Which of the following is NOT a function of the RBI?
  1. Maintaining price stability
  2. Regulating commercial banks
  3. Issuing government bonds
  4. Managing foreign exchange reserves

Questions & Step-by-Step Solutions

Which of the following is NOT a function of the RBI?
  • Step 1: Understand what the RBI (Reserve Bank of India) does. The RBI is the central bank of India and has several important functions.
  • Step 2: Identify the functions of the RBI. These include regulating banks, managing foreign exchange reserves, and controlling monetary policy.
  • Step 3: Recognize that issuing government bonds is not a function of the RBI. This task is usually handled by the government itself.
  • Step 4: Conclude that the correct answer to the question is the function that is NOT performed by the RBI, which is issuing government bonds.
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