Which of the following Institution is the custodian of the foreign exchange reserve in India?
Show answer & explanation
Correct answer: D
Explanation
Correct Answer:
Option 4: Reserve Bank of India
Explanation:
The Reserve Bank of India (RBI) is India's central bank and serves as the custodian of the country's foreign exchange reserves. It manages foreign currency and plays a crucial role in stabilizing international trade and exchange rates. The RBI utilizes foreign exchange reserves during necessary circumstances and ensures the economic stability of the country.
Additional Facts:
Option 1: The Ministry of External Affairs formulates policy.
Option 2: The Ministry of Finance prepares the budget.
Option 3: The Ministry of Corporate Affairs deals with companies.
Option 4: Correct Answer.
Potential Questions for Upcoming Exams:
Question: When was the RBI established?
Answer: 1935
Question: Where is the RBI's headquarters located?
Answer: Mumbai
Question: Who issues currency?
Answer: RBI
Question: What is monetary policy?
Answer: Currency control