As banker to the government, the RBI

collects income tax from citizensCorrect answerYour answerdecides the government's budgetCorrect answerYour answerkeeps its accounts and manages its borrowingCorrect answerYour answerlends to households for housingCorrect answerYour answer

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CorrectNot quiteAnswer C

Correct answer: C

The RBI acts as the government's bank and debt manager; taxes and the budget are the government's own work.

Concept: Banker to the government
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFunctions of the central bank

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As banker to the government, the RBI

Explanation