Economics: Money and Credit · Class 10 · CBSE Social Science
Which of the following institutions is responsible for supervising the functioning of formal sources of loans in India?
Practice question from Economics: Money and Credit (Class 10 · CBSE Social Science), with the correct answer and a step-by-step solution.
easy · MCQ · Q-CF94F9
Which of the following institutions is responsible for supervising the functioning of formal sources of loans in India?
- A.State Bank of India
- B.Ministry of Finance
- C.Reserve Bank of IndiaCorrect answer
- D.NABARD
Solution
The Reserve Bank of India (RBI) supervises the functioning of formal sources of loans, ensuring that banks maintain minimum cash balances and lend to small cultivators as well as large businesses.
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