Which of the following is a major objective of the Reserve Bank of India? MCQ with Answer and Explanation

Which of the following is a major objective of the Reserve Bank of India?
A. Formulation of the Union Budget
B. Collection of direct taxes
C. Maintaining monetary stability and regulating the financial system
D. Formulation of Five Year Plans
Answer: Option C
Solution (By JKSSB Mock Tests)
The RBI's primary responsibilities include maintaining price and financial stability, regulating banks and the financial system, and managing the currency and foreign exchange.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on government services is:
A. always 18%
B. exempt for certain government services and taxable for others
C. always 28%
D. always exempt

Correct Answer: Option B


Explanation:
Some government services are exempt, others taxable.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'dependency ratio' in demography is defined as:
A. working-age population divided by dependent population
B. dependent population divided by working-age population
C. rural population divided by urban population
D. elderly population divided by children

Correct Answer: Option B


Explanation:
Dependency ratio = dependent population / working-age population.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the Indian banking system?
A. Dual regulation of cooperative banks by RBI and state governments
B. Complete absence of NBFCs
C. No role for foreign banks
D. Absence of priority sector lending norms

Correct Answer: Option A


Explanation:
Urban and rural cooperative banks in India are subject to dual regulation by the Reserve Bank of India and the respective state governments.

This question belongs to: Economy GK Economy Set 1