Match each RBI role to its meaning
Exercise and reference answers
- Matching pairs
- Left
- Issuer of currency
- Right
- Only body that can issue the country's notes
- Left
- Banker to govt
- Right
- Keeps the government's accounts and bonds
- Left
- Custodian of forex
- Right
- Holds the foreign exchange reserves
- Left
- Bank to the banks
- Right
- Holds reserves for commercial banks
- Left
- Last resort lender
- Right
- Stands ready to lend to banks at all times
- Instructions
- Tap a role on the left, then tap what it means.
Explanation
_Source: syllabus Macroeconomics XII Ch3 Money and Banking, 3.2 DEMAND FOR MONEY AND SUPPLY OF MONEY_