Formal Sector Credit

Q.

In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?

Q. Identify the formal sources of credit.

1. Banks
2. Cooperatives
3. Parents
4. Local moneylenders

Q. The Reserve Bank of India ensures that banks do not lend out all their deposits as loans.

1. True
2. False

Q. Which of the following banks supervises the functioning of banks and cooperatives?

1. Government of India
2. Reserve Bank of India
3. State Bank of India
4. Royal Bank of India