Question

Which of the following are the main functions of RBI? (A). To maintain monetary stability in the economy
(B). To maintain stable payments system
(C). To regulate the overall volume of money and credit in the economy
(D). To promote the development of financial infrastructure of markets and systems

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

RBI is both a monetary authority and a regulator of banking/financial infrastructure.

Answer 1

The Correct Option is C

Step 1: Identify RBI's primary functions.
- Monetary stability: Yes (A)
- Stable payments system: Yes (B)
- Money and credit regulation: Yes (C)
- Financial infrastructure promotion: Yes (D)