Which function of the RBI involves controlling the money supply in the economy? What is the primary role of the Reserve Bank of India in managing public debt? Which of the followin... Which function of the RBI involves controlling the money supply in the economy? What is the primary role of the Reserve Bank of India in managing public debt? Which of the following is NOT a method used by the RBI for credit control? What is the purpose of the repo rate in monetary policy? How does the RBI contribute to India's economic development? Which of the following is an example of a development financial institution in India? Development financial institutions primarily help in? Which of the following is a feature of the money market?
Understand the Problem
The question is related to finance and primarily concerns the functions and roles of the Reserve Bank of India (RBI). It tests knowledge on monetary supply control, public debt management, credit control methods, and the economic contributions of the RBI.
Answer
1. Monetary policy formulation. 2. Issuing government securities. 3. Capital market operations. 4. Control inflation. 5. Control inflation. 6. IDBI. 7. Industrial development. 8. Short-term borrowing and lending.
- Monetary policy formulation involves controlling the money supply. 2. The primary role in managing public debt is issuing government securities. 3. Capital market operations are not used for credit control. 4. The repo rate helps to control inflation. 5. RBI contributes to economic development by controlling inflation. 6. IDBI is an example of a development financial institution. 7. Development financial institutions assist in industrial development. 8. A feature of the money market is facilitating short-term borrowing and lending.
Answer for screen readers
- Monetary policy formulation involves controlling the money supply. 2. The primary role in managing public debt is issuing government securities. 3. Capital market operations are not used for credit control. 4. The repo rate helps to control inflation. 5. RBI contributes to economic development by controlling inflation. 6. IDBI is an example of a development financial institution. 7. Development financial institutions assist in industrial development. 8. A feature of the money market is facilitating short-term borrowing and lending.
More Information
The RBI plays a crucial role in ensuring economic stability in India by regulating the monetary supply, managing government securities, and providing financial services to foster development.
Tips
Ensure understanding of various economic roles and tools employed by the RBI for monetary management.
Sources
- Reserve Bank of India - Wikipedia - en.wikipedia.org
- The Reserve Bank of India (RBI): What It Is and How It Works - investopedia.com
- Organisation and Functions - Reserve Bank of India - rbi.org.in
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