The question asks about the function of the Reserve Bank of India (RBI) as a 'lender of last resort'. This is a core function of central banks globally, and understanding its purpose is key to answering the question.
C) Commercial banks facing a liquidity crisis when no other source is available. This is the precise definition and function of a central bank acting as a 'lender of last resort'. It provides emergency liquidity to solvent but illiquid banks to prevent a wider financial crisis.
The question asks about the authority responsible for issuing currency in India, specifically highlighting the exceptions to the Reserve Bank of India's (RBI) general monopoly. Understanding the roles of different government bodies in currency management is key.
Correct Option: B) The Ministry of Finance, Government of India, is responsible for issuing coins and one-rupee notes in India. This is a well-established fact regarding currency management in India.
The question asks about the role of the Reserve Bank of India (RBI) as a 'banker to the government'. We need to identify which government entities the RBI serves in this capacity.
Correct Option: A) Union Government and State Governments
The question asks to identify the specific function of the Reserve Bank of India (RBI) that encompasses supervising, regulating, and controlling commercial banks, including their licensing. We need to evaluate each option to see which one accurately describes this comprehensive role.
Correct Option: B) Banker's bank and supervisor of the banking system
This function precisely describes the RBI's role in overseeing, regulating, and controlling commercial banks, including the crucial aspect of licensing them to operate. The RBI acts as the ultimate authority for the banking sector, ensuring its smooth and sound functioning.
The question asks about the composition of the Monetary Policy Committee (MPC) of the RBI, specifically focusing on the non-RBI members. Understanding the structure and appointment process of the MPC is crucial for answering this question.
Correct Option: C) The three non-RBI members of the Monetary Policy Committee are external members appointed by the Government of India. This ensures a balance of internal expertise and external perspectives in monetary policy decision-making.