MPSC Rajyaseva Prelims

Money, Banking and Monetary Policy question bank (Indian Economy)

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Q1.

Which of the following functions are statutorily entrusted to the Reserve Bank of India under the Reserve Bank of India Act, 1934? 1. Acting as banker to the Central Government. 2. Management of public debt for the Central Government. 3. Formulating and implementing monetary policy. Select the correct answer using the code given below:

Topic: RBI Functions | Source: AI Generated (MPSC Rajyaseva Prelims) | Status: pending review

(A)

1 and 3 only

(B)

2 and 3 only

(C)

1, 2 and 3

(D)

1 only

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Q2.

Consider the following statements regarding the Reserve Bank of India's role as the lender of last resort: 1. It provides liquidity support to commercial banks only during financial panics. 2. This function helps prevent systemic risk and bank runs. Which of the statements given above is/are correct?

Topic: RBI Functions | Source: AI Generated (MPSC Rajyaseva Prelims) | Status: pending review

(A)

1 only

(B)

2 only

(C)

Both 1 and 2

(D)

Neither 1 nor 2

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