6. RBI manages the issuance, redemption, and servicing of government securities. What role does it play as a debt manager for the government?
a) It oversees the investment of government funds in various instruments.
b) It manages the government’s borrowing program and advises on debt-related policies.
c) It monitors and ensures the timely payment of interest and principal on government debt.
d) All of the above
7. RBI advises the government on the borrowing requirements and interest rates. Which department of RBI handles this function?
a) Department of External Investments and Operations
b) Department of Monetary Policy
c) Department of Government and Bank Accounts
d) Department of Treasury Operations
8. Which committee recommends the amount and timing of the issue of Treasury Bills by the government?
a) Fiscal Responsibility and Budget Management (FRBM) Review Committee
b) Economic Capital Framework Committee
c) Central Board of Directors
d) Public Debt Office
9. Which government securities are not issued by RBI?
a) Treasury Bills
b) Cash Management Bills
c) State Development Loans
d) Infrastructure Bonds
10. What is the primary objective of RBI in managing government debt?
a) Minimizing the cost of borrowing for the government
b) Maximizing the revenue generated from government securities
c) Maintaining stability in the government securities market
d) Eliminating the government’s reliance on borrowing
