Which of the following is NOT a function of the Reserve Bank of India (RBI)?

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Question: Which of the following is NOT a function of the Reserve Bank of India (RBI)?

Options:

Correct Answer: Setting fiscal policy

Solution:

Setting fiscal policy is not a function of the RBI; it is primarily responsible for monetary policy and regulating the banking sector.

Which of the following is NOT a function of the Reserve Bank of India (RBI)?

Which of the following is NOT 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 responsible for managing the country's currency and monetary policy.
Step 2: Learn about the functions of the RBI. These include regulating banks, managing inflation, and controlling the money supply.
Step 3: Identify what fiscal policy is. Fiscal policy involves government spending and taxation decisions made by the government, not the central bank.
Step 4: Compare the functions of the RBI with fiscal policy. Since the RBI does not set fiscal policy, it means that this is NOT a function of the RBI.
Step 5: Conclude that the correct answer to the question is that setting fiscal policy is NOT a function of the RBI.

No concepts available.