Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling…
Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes. Select the correct answer using the code given below.
I and II only
II, III and IV
I, III, IV and V
I, II and V
Solution
RBI earns income from open-market operations in government bonds (I), foreign-exchange operations (II), and seigniorage from currency issue (V). RBI does not manage pension funds or lend to private companies. Hence I, II and V.