Question

Maintains reserves for currency issue in all of the following EXCEPT

• A. Gold coins and bullion
• B. Foreign securities
• C. Rupee coins
• D. Corporate debentures

Answer 1

Answer:

D. Corporate debentures

RBI maintains reserves for currency issue in the form of: Gold coins and bullion Foreign securities Rupee coins Corporate debentures are not permissible as reserve assets because they are risky and not guaranteed by the government, unlike gold or government securities.