6. The Reserve Bank of India (RBI) is responsible for formulating and implementing policies to:
a) Maintain a stable exchange rate regime
b) Ensure adequate forex reserves to meet external liabilities
c) Prevent unauthorized forex transactions and money laundering
d) All of the above
7. The Reserve Bank of India (RBI) manages its foreign exchange reserves primarily through:
a) Purchase and sale of foreign currencies in the foreign exchange market
b) Investments in foreign government bonds and securities
c) Deposits with international financial institutions
d) All of the above
8. Which of the following is a function of the RBI as the custodian of foreign exchange reserves regarding external borrowings?
a) Determining the limit and terms of external borrowings by the government
b) Monitoring the repayment and servicing of external debts
c) Approving and regulating foreign currency loans by Indian entities
d) All of the above
9. The Reserve Bank of India (RBI) plays a crucial role in maintaining the stability of the external value of the domestic currency by:
a) Intervening in the foreign exchange market through buying or selling currencies
b) Setting the official exchange rates in collaboration with authorized money changers
c) Controlling capital inflows and outflows to manage the exchange rate volatility
d) All of the above
10. The Reserve Bank of India (RBI) monitors and regulates the foreign exchange transactions of non-banking entities through:
a) Authorization and supervision of authorized dealers and money changers
b) Imposing restrictions on forex transactions for individuals and businesses
c) Inspecting and auditing currency exchange bureaus and agents
d) All of the above
