Question

What is a crucial function of the Reserve Bank related to the economy?

• A. Stock market regulation
• B. Credit management
• C. Import/export control
• D. Tax collection

Answer 1

Answer:

B. Credit management

Credit management is indeed one of the most important functions of RBI because:

• It helps control money supply in the economy

• It helps manage inflation

• It influences economic growth through lending rates

• It affects the overall financial stability of the banking system