Multiple choice

Which of the following is not a function of the central bank of India?

  1. Regulation of currency and flow of credit system.

  2. Maintaining exchange value of rupee.

  3. Formulating monetary policy.

  4. Lending at low rates to the public.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The central bank (RBI in India) regulates currency and credit, maintains exchange value, and formulates monetary policy. Direct lending to the public at concessional rates is a commercial bank function, not a central bank function.

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