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Question

Which of the following are common functions of the central bank?


  1. Conduct of monetary policy

  2. Lending to the general public

  3. Supervising the stock market

  4. Lending to the commercial banking system


Solution

The correct options are
A

Conduct of monetary policy


D

Lending to the commercial banking system


Out of the given options, conduct of monetary policy and lending to the commercial banking system are two common functions of the RBI.

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