KnowledgeBoat Logo
|

Commercial Applications

Which of the following options is/are correct statement(s)?

Statement 1: The Reserve Bank of India (RBI) acts as the banker's bank and manages the country's monetary policy.

Statement 2: The Industrial Finance Corporation of India (IFCI) is responsible for controlling the country's monetary policy.

  1. Only Statement 1 is correct
  2. Only Statement 2 is correct
  3. Both statements are correct
  4. Both statements are incorrect

Banking

3 Likes

Answer

Only Statement 1 is correct

Reason — Statement 1 is CORRECT — the RBI is the central bank of India and acts as banker's bank, lender of last resort, and manager of the country's monetary policy. Statement 2 is INCORRECT — IFCI is an industrial bank which provides long-term finance, technical and managerial assistance to industries. It does NOT control monetary policy; that is exclusively the role of the RBI.

Answered By

1 Like


Related Questions