Question
Which of the following are the functions of the Reserve
Bank of India? 1. The RBI shall recommend the denominational values of the notes as well as the discontinuance of issue of notes. 2. RBI sells the foreign currency in the foreign exchange market when its supply decreases in the economy and vice-versa. 3. Setting of Inflation targeting. 4. Maintaining price stability in the economy. Select the correct answer answer using the codes given below:Solution
β Statement 1 is correct: The RBI shall recommend the denominational values of the notes as well as the discontinuance of issue of notes (Section 24 of the Reserve Bank of India Act, 1934). Further, it is on the recommendation of the RBI that the Central government may declare that any series of bank notes shall cease to be legal tender (Section 26) β Statement 2 is correct: Custodian of Foreign Reserves: For the purpose of keeping the foreign exchange rates stable, the Reserve Bank buys and sells foreign currencies and also protects the country's foreign exchange funds. RBI sells the foreign currency in the foreign exchange market when its supply decreases in the economy and vice-versa. Currently, India has a Foreign Exchange Reserve of around US$ 650 billion. β Statement 3 is incorrect: To maintain price stability, inflation needs to be controlled. The Government of India sets an inflation target for every five years. RBI has an important role in the consultation process regarding inflation targeting. The current inflation-targeting framework in India is flexible in nature. The amended RBI Act provides for the inflation target to be set by the Government of India, in consultation with the Reserve Bank, once every five years. β Statement 4 is correct: The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.
David is ranked 15th from the top in his class. When counted from the bottom, he is ranked 126th. What is the total number of students in the class?
S, T, U, V and W are friends. U runs faster than T but slower than V. S is the slowest runner and W runs faster than V. Who runs the fastest among the f...
What can be the possible height of F?
In a class of 25 students, a girl is ranked 10th from top. When two girls joined, her rank was dropped by one. What is her new rank from the ...
In a row of trees, one tree is fifth from either end of the row. How many trees are there in the row?
- Who is the second shortest person?
Six people F, G, H, I, J, K have different weight. F is heavier than two people. G is lighter than F. J is heavier than F. H is lighter than J but heavi...
There are five friends who walk at different speeds. G walks slower than only F. H walks faster than I. J walks faster than H. Who is the third slowest?
Lakshmi is elder than Meenu. Leela is elder than Meenu but younger than Lakshmi. Lata is younger than both Meenu and Hari but Hari is younger than Meenu...
Ramesh ranked 16th from the top and 21 from the bottom in his class in an examination. If only 21 students passed the exam, how many students in his cla...