26. When the RBI sells government securities in the open market, what is the impact on the money supply?
a) Money supply increases
b) Money supply decreases
c) Money supply remains unchanged
d) It depends on other factors
27. The RBI as a banker to the government performs which of the following functions?
a) Managing foreign exchange reserves
b) Issuing and managing government securities
c) Advising the government on exchange rate policy
d) All of the above
28. The Reserve Bank of India can grant financial accommodation to banks in emergency situations under which provision?
a) Liquidity Adjustment Facility (LAF)
b) Marginal Standing Facility (MSF)
c) Special Drawing Rights (SDR)
d) Open market operations
29. The Reserve Bank of India regulates and supervises the functioning of which entities?
a) Asset Reconstruction Companies (ARCs)
b) Non-Banking Financial Companies (NBFCs)
c) Regional Rural Banks (RRBs)
d) All of the above
30. Which of the following is NOT a function performed by the RBI as a banker to banks?
a) Providing credit facilities to banks
b) Managing foreign exchange reserves
c) Issuing currency notes and coins
d) Maintaining accounts of other banks
