Here are some MCQs on RBI Functions – Banker and Debt Manager for Governments
1. The Reserve Bank of India (RBI) acts as a banker to the:
a) Central Government
b) State Governments
c) Both a and b
d) None of the above
2. RBI issues and manages the currency in circulation in India. What does it mean to be a “currency manager”?
a) It means that RBI prints and supplies currency notes and coins to banks.
b) It means that RBI determines the amount of currency required in circulation.
c) It means that RBI withdraws and replaces damaged or outdated currency.
d) All of the above
3. RBI carries out the banking needs of the Central and State Governments. Which of the following functions does RBI perform as a banker to the government?
a) Accepting deposits from the government
b) Making payments on behalf of the government
c) Handling the government’s receipts and payments
d) All of the above
4. The RBI acts as a fiscal agent and banker for the central and state governments, which means that it:
a) Manages government debt issues
b) Maintains accounts for government departments
c) Undertakes the collection and payment of government funds
d) All of the above
5. RBI acts as a banker to which level of government in India?
a) Central Government only
b) State Governments only
c) Both Central and State Governments
d) None of the above
