CUET Economics PYQs

Rajesh is a weaver and is looking for food for his family. He approaches Shyam who is a farmer and offers to exchange clothes in return for wheat. However, Shyam says that his family needs shoes, not clothes. Which shortcoming of the barter system is being highlighted in this case?

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.

Why does central bank is called the lender of last resort?

1. It lends money to the government to finance its budget deficit.
2. Central bank lends money to trade and industry to support their export operations.
3. When a country runs out of money, the central bank prints more money.
4. Central bank lends money to banks at all times.