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    Question

    The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?

    1. Other banks retain their deposits with the RBI.

    2. The RBI lends funds to the commercial banks in times of need.

    3. The RBI advises the commercial banks on monetary matters.

    Select the correct answer using the codes given below:

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

    Solution

    The correct answer is D

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