Multiple choice

Which of the following statements is correct?

  1. The RBI is just like any ordinary commercial bank in India.

  2. The RBI is responsible for the overall monetary policy of India.

  3. Selective credit control measures affect all banks in a similar manner.

  4. A high rate of interest encourages new investment.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

RBI is India's central bank responsible for monetary policy, not an ordinary commercial bank. Option A is wrong because RBI is the banker's bank and regulator. Option C is incorrect because selective credit controls affect different banks/sectors differently based on their exposure. Option D is wrong because high interest rates discourage investment.

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