True or false about the Reserve Bank

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   The Bank alone may issue bank notes.

2. Statement is true

   Yes

   Statement

   Notes are guaranteed by the Central Government.

3. Statement is true

   No

   Statement

   The Issue Department sits inside Banking.

4. Statement is true

   No

   Statement

   The MPC decision only advises the Bank.

5. Statement is true

   Yes

   Statement

   The Governor chairs the MPC.

6. Statement is true

   No

   Statement

   The inflation target is fixed every year.

Instructions

Decide whether each statement is true or false.

Explanation