Which of the following is NOT a function of the Reserve Bank of India (RBI)?
Practice Questions
Q1
Which of the following is NOT a function of the Reserve Bank of India (RBI)?
Issuing currency
Managing foreign exchange
Setting fiscal policy
Regulating banks
Questions & Step-by-Step Solutions
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.
