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    Question

    Which of the following are the functions of the Reserve

    Bank of India?         I.            RBI sells foreign currency in the foreign exchange market when its supply decreases in the economy and vice-versa.       II.            Setting of Inflation targeting.     III.            Maintaining price stability in the economy.
    A I and III only Correct Answer Incorrect Answer
    B I and II only Correct Answer Incorrect Answer
    C II and III only Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    The Government of India sets an inflation target for every five years. RBI has an important role in the consultation process regarding inflation targeting.

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