Read the following passage carefully and answer the questions given below:
Money is the commonly accepted medium of exchange. The first and foremost role of money is that it acts as a medium of exchange. Economic exchanges without the mediation of money are referred to as barter exchanges. The central bank has several important functions. It issues the currency of the country. India got its central bank in 1935. Its name is the ’Reserve Bank of India.’ It controls money supply of the country through various methods, like bank rate, open market operations, and variations in reserve ratios. It acts as a banker to the government. It is the custodian of the foreign exchange reserves of the economy. It also acts as a bank to the banking system. Currency issued by the Central Bank can be held by the public or by the commercial banks and is called the ’high-powered money’ or ’reserve money’ or ’monetary base’ as it acts as a basis for credit creation.

Question

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The Reserve Bank of India was established in which year?

The Correct Option is A

Solution and Explanation

RBI controls money supply through the following measures except:

The Correct Option is B

Solution and Explanation

Choose the incorrect statement concerning the RBI:

The Correct Option is C

Solution and Explanation

Currency issued by the central bank can be held by the public or by the commercial banks, and is known by various terms except:

The Correct Option is C

Solution and Explanation

The primary function (first and foremost role) of money is that it acts as:

The Correct Option is C

Solution and Explanation

Which of the following is NOT a reason for the slowdown of growth in Pakistan?

The Correct Option is D

Solution and Explanation

Questions Asked in CUET exam