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Which of the following is a function of the Reserve Bank of India (RBI) in the money market?  A. Issuing currency notes  B. Collecting income tax  C. Regulating stock markets  D. Conducting elections

Question

Which of the following is a function of the Reserve Bank of India (RBI) in the money market?  A. Issuing currency notes  B. Collecting income tax  C. Regulating stock markets  D. Conducting elections

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Solution

The function of the Reserve Bank of India (RBI) in the money market is A. Issuing currency notes. The RBI is the sole authority in India that is responsible for issuing currency. It does not collect income tax, regulate stock markets, or conduct elections. These tasks are performed by other government bodies.

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