Concerning the functions of the Central Bank of India, which statement(s) is (are) accurate?

Statement 1: The Central Bank controls the issuance of currency and manages the country's monetary policy.

Statement 2: The Central Bank primarily focuses on maximizing its own profits.

Statement 3: The Central Bank advises the government to impose restrictions on imports and encourages exports.

Statement 4: The Central Bank's decisions have no impact on the country's economic stability.

1. 1 & 3
2. 2 & 4
3. Only 1
4. 3 & 4

1 & 3

Reason — Statement 1 is TRUE — the Central Bank has monopoly over issuing currency notes and carries out the country's monetary policy. Statement 3 is TRUE — the Central Bank advises the Government to impose restrictions on imports and encourage exports so as to keep the balance of payments in favour of the country. Statement 2 is FALSE — the aim of the central bank is to serve the country's interest, not to earn profit. Statement 4 is FALSE — the central bank's credit policy directly determines the level of economic activity in the country.