Multiple choice

The major objective of formation of RBI by enacting RBI Act, 1934 was to

(a) regulate the issue of bank notes (b) keep reserves for securing monetary stability in India (c) operate the currency and credit system of India (d) keep control over the capital market and foreign exchange markets

  1. Only (a), (b) and (c)

  2. Only (b), (c) and (d)

  3. Only (a), (c) and (d)

  4. All of the above

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Preamble of the RBI describes its basic function. They are to regulate the issue of bank notes, keep reserves to secure monetary stability in India and generally to operate the currency and credit system in the best interests of the country. Thus, option 1 is correct. 

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