What is the primary objective of the Reserve Bank of India (RBI)?

Practice Questions

Q1
What is the primary objective of the Reserve Bank of India (RBI)?
  1. To regulate the stock market
  2. To manage the country's foreign exchange
  3. To control inflation and stabilize the currency
  4. To provide loans to the government

Questions & Step-by-Step Solutions

What is the primary objective of the Reserve Bank of India (RBI)?
  • Step 1: Understand that the Reserve Bank of India (RBI) is the central bank of India.
  • Step 2: Know that one of the main goals of the RBI is to control inflation, which means keeping prices stable.
  • Step 3: Recognize that the RBI also aims to stabilize the currency, ensuring that the value of money remains steady.
  • Step 4: Realize that by controlling inflation and stabilizing the currency, the RBI helps maintain overall economic stability in the country.
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