RBI Functions – Custodian of Foreign Exchange

11. The Reserve Bank of India (RBI) compiles and publishes statistical data related to foreign exchange transactions and reserves through:

a) The Foreign Exchange Management Act (FEMA)

b) The Exchange Control Manual (ECM)

c) The Handbook of Statistics on Indian Economy

d) The Monthly Policy Review Report

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12. The primary objective of the Reserve Bank of India (RBI) as the custodian of foreign exchange reserves is to:

a) Promote exports by depreciating the domestic currency

b) Maximize profits through forex trading and investments

c) Ensure macroeconomic stability and financial market development

d) Facilitate cross-border money transfers for individuals and businesses

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13. The Reserve Bank of India (RBI) holds foreign exchange reserves to meet various contingencies, including:

a) Financing import payments in times of low export earnings

b) Buffering against external shocks and sudden capital outflows

c) Fulfilling international obligations and debt servicing

d) All of the above

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14. The Reserve Bank of India (RBI) plays an essential role in attracting foreign direct investments (FDIs) by:

a) Facilitating easy repatriation of profits and dividends for foreign investors

b) Providing transparent and efficient mechanisms for foreign exchange transactions

c) Regulating and monitoring the inflow and utilization of FDIs

d) All of the above

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15. The Reserve Bank of India (RBI) collaborates with the central government of India in formulating and implementing policies related to:

a) Foreign trade and current account transactions

b) Foreign exchange and exchange control regulations

c) Capital account transactions and foreign investments

d) All of the above

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