Consider the following statements regarding Reserve Bank of India : I. > It is a banker to the Central Government. II. > It formulates and administers monetary policy. III. > It acts as an agent of the Government in respect of Indias membership of IMF. IV

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Submitted by examrobotsa on

Q: 54 (IAS/2001)
Consider the following statements regarding Reserve Bank of India :
I. It is a banker to the Central Government.
II. It formulates and administers monetary policy.
III. It acts as an agent of the Government in respect of India’s membership of IMF.
IV. It handles the borrowing programme of Government of India.
Which of these statements are correct ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,162,51,36,11,162,4

keywords: 

{'reserve bank': [1, 0, 3, 4], 'monetary policy': [0, 0, 0, 2], 'borrowing programme': [0, 0, 2, 0], 'banker': [0, 0, 4, 0], 'central government': [1, 0, 0, 1], 'imf': [0, 1, 2, 0], 'government': [5, 0, 0, 1], 'iv': [6, 110, 77, 8]}

The Reserve Bank of India fulfills all the roles stated in the statements I, II, III, and IV.

Statement I: RBI is indeed a banker to the Central Government. It performs a variety of functions for the government including managing the government`s banking accounts, the public debt, and formulating and administering exchange control methods.

Statement II: The RBI also formulates and administers the monetary policy of India. This involves managing the country`s money supply, controlling inflation, and ensuring financial stability in the country.

Statement III: As an agent of the Government in respect to India`s membership of the IMF, the RBI deals with the International Monetary Fund on behalf of the Indian government.

Statement IV: Finally, the RBI also handles the borrowing program of the Government of India. It does this by issuing government securities, which are now made electronically, to borrow on behalf of the government.

Therefore, option 3 - I, II, III, and IV - is the correct answer as all statements correctly describe roles of the Reserve Bank of India.