Multiple Choice Questions on The Reserve Bank of India regulates the commercial banks in matters of 1 liquidity of assets 2 branc........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

The Reserve Bank of India regulates the commercial banks in matters of 1 liquidity of assets 2 branc...........

Economic Affairs Money Supply and Monetary Policy
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    The Reserve Bank of India regulates the commercial banks in matters of

    1. liquidity of assets

    2. branch expansion

    3. merger of banks

    4. winding-up of banks

    Select the correct answer using the codes given below:

    This questions was previously asked in
    UPSC CSP Previous Year Paper (2013)
    View All IAS Previous Year Papers

    1 and 4 only 

    Incorrect Answer

     2, 3 and 4 only

    Incorrect Answer

    1, 2 and 3 only 

    Incorrect Answer

    1, 2, 3 and 4

    Correct Answer
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    Explanation:

    The RBI is the central banks that control all the other commercial banks, financial institutes, finance firms etc. It supervises the entire financial sector of the country. The Reserve Bank of India regulates the commercial banks in all the aspects i.e. liquidity of assets, branch expansion, merger of banks, winding-up of banks.

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