Frequently Asked Questions Related to RBI
Q1. What part does the RBI play in the growth of the economy?
Solution:
The Reserve Bank’s role in economic growth includes assuring credit to the economy’s productive sectors, setting up organizations to create financial infrastructure, and increasing access to reasonably priced financial services.
Q2. What purpose does a Bank Serve?
Solution:
Banks assist customers in saving money and securing their funds. People deposit their money with banks to assure its safety. Deposits can be made at banks, and they offer interest. People have the option of withdrawing their funds whenever they need to.
Q3. What does the RBI emblem represent?
Solution:
The RBI’s logo serves as a reminder and a symbol of the organization’s independence from the government as well as its governmental standing and connections to the nation. The RBI states that when choosing the logo, it was taken into account that “it should have something Indian in the design” and that “the seal should underline the Governmental position of the Bank, but not too closely.”
Q4. What steps are taken for currency management in India?
Solution:
According to the Reserve Bank of India Act, 1934, the Reserve Bank is responsible for managing money in India. The Reserve Bank makes recommendations to the Government about the various denominations. Along with the Government, the RBI coordinates the design of banknotes, including the inclusion of security elements.
Q5. Why does the RBI keep foreign currency reserves?
Solution:
The central bank or other monetary authority of a nation, which monitors the balance of payments, manages currency exchange rates, and preserves the stability of the financial markets, maintains these reserves, which include assets like foreign currencies, gold reserves, and treasury bills, among others.
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