RBI Functions – Custodian of Foreign Exchange

36. The Reserve Bank of India (RBI) collaborates with other central banks and international organizations to establish and promote global standards regarding:

a) Forex regulation and supervision

b) Anti-money laundering and combating the financing of terrorism (AML/CFT)

c) Cross-border payment and settlement systems

d) All of the above

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37. The Reserve Bank of India (RBI) plays a significant role in ensuring the efficiency and integrity of the forex market by:

a) Monitoring and investigating forex market abuses and insider trading

b) Regulating and managing the clearing and settlement systems for forex transactions

c) Promoting market development and participation through education and awareness programs

d) All of the above

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38. The Reserve Bank of India (RBI) has the authority to regulate and control the movement of capital in and out of the country based on:

a) Balance of payments (BoP) and current account deficit (CAD)

b) Government policies and macroeconomic considerations

c) International treaties and agreements

d) All of the above

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39. The Reserve Bank of India (RBI) maintains a forex reserve management framework that adheres to international best practices, including:

a) Transparency and accountability in reporting and disclosure mechanisms

b) Risk management practices and adequate diversification of reserves

c) Preservation of the value of foreign currency holdings

d) All of the above

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40. The Reserve Bank of India (RBI) closely monitors and analyzes global economic and market trends to:

a) Formulate appropriate policies to manage forex reserves effectively

b) Predict and mitigate risks and vulnerabilities in the forex market

c) Capitalize on opportunities for profitable forex trades and investments

d) All of the above

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