UPSC CSE Prelims

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

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Q1.

Consider the following functions: 1. Acting as a banker to the Central Government and State Governments. 2. Management of Foreign Exchange Reserves under FEMA. 3. Providing ways and means advances to state governments. Which of the above functions are constitutionally or statutorily mandated to be performed by the Reserve Bank of India?

Topic: RBI Functions | Source: AI Generated (UPSC CSE Prelims) | Status: pending review

(A)

1 and 2 only

(B)

2 and 3 only

(C)

1 and 3 only

(D)

1, 2 and 3

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Q2.

Which of the following bodies in India is legally mandated to determine the policy interest rate required to achieve the inflation target?

Topic: RBI Functions | Source: AI Generated (UPSC CSE Prelims) | Status: pending review

(A)

Cabinet Committee on Economic Affairs

(B)

Monetary Policy Committee

(C)

Securities and Exchange Board of India

(D)

Reserve Bank of India Central Board of Directors

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