RBI Functions – Custodian of Foreign Exchange

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46. The Reserve Bank of India (RBI) encourages and facilitates cross-border trade and investments by:

a) Streamlining and simplifying forex regulations and documentation processes

b) Promoting payment and settlement systems for international trade transactions

c) Providing insurance and guarantee mechanisms for forex transactions

d) All of the above

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47. The Reserve Bank of India (RBI) collaborates with the central government in formulating the country’s foreign exchange policy by taking into account factors such as:

a) National security and political considerations

b) Economic and financial stability objectives

c) Trade and investment promotion strategies

d) All of the above

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48. The Reserve Bank of India (RBI) ensures compliance with foreign exchange regulations by conducting regular inspections and imposing penalties for violations on:

a) Authorized dealers and money changers

b) Individuals and businesses engaged in forex transactions

c) Non-banking financial institutions and foreign banks operating in India

d) All of the above

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49. The Reserve Bank of India (RBI) maintains cordial and productive relationships with other central banks and international organizations to:

a) Exchange information and cooperate on regulatory matters

b) Share experiences and best practices in forex management

c) Facilitate cooperation in times of financial crises or emergencies

d) All of the above

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50. The Reserve Bank of India (RBI) plays a crucial role in restoring and maintaining financial stability during times of global financial crises by:

a) Providing liquidity support to banks and financial institutions

b) Implementing regulatory measures to prevent systemic risks and vulnerabilities

c) Coordinating with other central banks and international organizations

d) All of the above

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