Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Which of the following is a function of RBI ?

Options:

Accepting deposits from general public

Giving loans to general public

Banker to the government

Credit creation

Correct Answer:

Banker to the government

Explanation:

Among the given options, the function that is specifically associated with the Reserve Bank of India (RBI) is: Banker to the government

The Reserve Bank of India acts as the banker to the government, providing various banking services to the government. This includes maintaining the government's accounts, managing its borrowing and lending activities, and facilitating financial transactions on behalf of the government. Accepting deposits from the general public, giving loans to the general public, and credit creation are functions typically associated with commercial banks rather than the central bank (RBI).