Attempt this previous-year question. The correct option stays hidden until you choose.
The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?
1. Other banks retain their deposits with the RBI.
2. The RBI lends funds to the commercial banks in times of need.
3. The RBI advises the commercial banks on monetary matters.
Select the correct answer using the codes given below :
Pick an option to check yourself.
• Correct Answer: D
• As bankers' bank, RBI holds cash reserves (CRR), lends as lender of last resort, and advises on monetary policy.
• All three functions are integral to RBI's role in the banking system.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
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