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WBCS Main Examination 2023 — Paper V: Indian Constitution and Economy · Question 107 of 200

Q107
Indian EconomyMoney, Banking & Financial Institutions
As the bankers' bank, the Reserve Bank requires every scheduled bank to maintain
  1. a.cash reserves with it.
  2. b.gold reserves with it.
  3. c.gold and foreign exchange reserves with it.
  4. d.gold and cash reserves with it.

Answer: (A) cash reserves with it.

As bankers' bank the RBI requires every scheduled bank to keep a part of its deposits as cash reserves with it (the Cash Reserve Ratio). Banks are not required to keep gold or foreign exchange with the RBI.

Q106 Whole paperQ108