Which of the following is NOT a function of the Reserve Bank of India? MCQ with Answer and Explanation

Which of the following is NOT a function of the Reserve Bank of India?
A. Formulating fiscal policy
B. Acting as banker to the government
C. Controlling credit
D. Issuing currency notes
Answer: Option A
Solution (By JKSSB Mock Tests)
Fiscal policy is formulated by the government (Ministry of Finance). RBI is responsible for monetary policy, currency issue, banker to government and credit control.

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Practice More Economy Set 1 Questions

Question #1
The Reserve Tranche Position in India's forex reserves refers to:
A. SDR holdings
B. India's quota subscription to IMF paid in foreign currency that can be drawn without conditions
C. gold held by RBI
D. foreign currency assets held abroad

Correct Answer: Option B


Explanation:
The Reserve Tranche Position is India's IMF quota subscription held in foreign currency.

This question belongs to: Economy GK Economy Set 1
Question #2
The Lewis model of economic development is based on:
A. foreign aid
B. export-led growth
C. labour transfer from agriculture to industry
D. import substitution

Correct Answer: Option C


Explanation:
The Lewis model explains development through transfer of surplus labour from traditional agriculture to modern industry.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'GST' is a destination-based tax, so tax revenue accrues to:
A. consuming state
B. producing state
C. exporting state
D. centre only

Correct Answer: Option A


Explanation:
GST is destination-based; tax revenue goes to the state where goods are consumed.

This question belongs to: Economy GK Economy Set 1