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      Question

      Under Section 3 of the RBI Act, 1934, the Reserve Bank

      of India is constituted for the purpose of taking over the management of which function from the Central Government?
      A The management of the public debt Correct Answer Incorrect Answer
      B The management of foreign exchange Correct Answer Incorrect Answer
      C The management of scheduled banks Correct Answer Incorrect Answer
      D The management of the stock exchanges Correct Answer Incorrect Answer
      E The management of the currency Correct Answer Incorrect Answer

      Solution

      Section 3(1) provides that the Reserve Bank of India shall be constituted for the purposes of taking over the management of the currency from the Central Government and of carrying on the business of banking in accordance with the provisions of the Act. Under Section 3(2), the Bank is a body corporate with perpetual succession and a common seal, and may sue and be sued by its name. The core purpose stated in Section 3 is taking over the management of the currency.

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