Financial Awareness - Risk, Stability & Emerging Finance
Which of the following is NOT a function of the Reserve Bank of India as a regulator?
Which of the following is NOT a function of the Reserve Bank of India as a regulator?
medium Q14 of 15
Step-by-Step Solution
Step 1: Understand RBI’s regulatory functions
RBI supervises banks, regulates NBFCs, and controls money supply using monetary policy tools.Step 2: Analyze fiscal deficit control
Fixing the government’s fiscal deficit target is a fiscal policy function, managed by the government, not RBI.Final Answer:
Fixing the government’s fiscal deficit target → Option AQuick Check:
Fixing the government’s fiscal deficit target = correct ✅
Quick Trick: Fiscal deficit is government’s responsibility, not RBI’s.
Common Mistakes:
- Confusing fiscal policy with RBI’s monetary regulation.
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