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CUET Economics 2023 PYQs29 May Shift 2. Free, no login required.

Macro

past year questions, CUET Economics 2023 29 May Shift 2

Money & Banking

past year questions, Macro, CUET Economics 2023 29 May Shift 2

Medium

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

As a bankers' bank, what is the role played by RBI?

A. Custodian of cash reserves

B. Maintain Foreign Exchange Reserves

C. Currency Issue

D. Lender of last resort

E. Clearing house

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

As bankers' bank, RBI acts as custodian of cash reserves (A), lender of last resort (D), and clearing house for inter-bank settlements (E). Maintaining foreign exchange reserves and issuing currency are separate functions of the central bank, not part of the bankers' bank role. Hence A, D and E only.

More from this set:

Question 41

The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -- Rs 1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, Rs 25,000 on Nagarik Sahakari Bank Maryadit, and Rs 1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi Commercial bank on exposure norms and statutory and other restrictions & KYC.

Which function of central Bank is refered to in the above paragraph.

Question 43

How does RBI act as a supervisor to bank?

Question 44

If all the depositors, one day come to withdraw all the cash, what would be role played by RBI?

Question 45

Which of the following is correct statement?

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CUET Economics Past Year Questions (Topic-Wise)