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    Question

    The Reserve Bank of India regulates the commercial banks in matters of :

    1. liquidity of assets 

    2. branch expansion

    3. merger of banks 

    4. winding-up of banks

    Select the correct answer using the codes given below.

    A 1 and 4 only Correct Answer Incorrect Answer
    B 2, 3 and 4 only Correct Answer Incorrect Answer
    C 1, 2 and 3 only Correct Answer Incorrect Answer
    D 1, 2, 3 and 4 Correct Answer Incorrect Answer
    E 1 and 3 only Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India is the main monetary authority of the country and beside that, in its capacity as the central bank, acts as the bank of the national and state governments. 

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