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Aspects of Indian Economy
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All but one of the following statements are incorrect. Find the correct statement.
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A
The RBI is the lender of last resort for Indian public sector banks
💡 Explanation:
The RBI acts as lender of last resort for banks facing liquidity crises, providing emergency funds when banks cannot borrow elsewhere. Option A is incorrect because balance of payments is a broader concept than balance of trade (which only covers goods). Option B is factually incorrect as India maintains substantial foreign exchange reserves. Option C is wrong because devaluation is not a cure-all for balance of payments problems.