BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial supervision of banks/financial institutions
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Policy planning of Mutual Fund
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management of forex/ forex reserves
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capital management and business of banks
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Detailed explanation-1: -It can purchase and discount bills of exchange from commercial banks. It can purchase foreign exchange from banks and sell it to them. It can provide loans to banks and state financial corporations. It can provide advances to the central government and state governments.
Detailed explanation-2: -Advancing loans to the public and accepting deposits from the public is not the function of the Reserve Bank of India.
Detailed explanation-3: -Mutual funds are regulated by the Securities and Exchange Board of India (SEBI).
Detailed explanation-4: -The Reserve Bank of India regulates three categories of financial markets; money markets, government securities markets and foreign exchange markets. Mutual Funds have a presence in the first two and the Reserve Bank is therefore interested in the role that they play in developing them.