Q4. (UPSC Prelims 2020)

Which of the following statements best describes the role of RBI in inflation targeting?

(a) It fixes the inflation rate annually
(b) It follows the inflation rate decided by Parliament
(c) It regulates money supply to achieve inflation target
(d) It directly controls prices of essential commodities

Q5. (UPSC Prelims 2018)

With reference to the Indian economy, what is the role of RBI in the issue of paper currency?

(a) Issues currency notes on behalf of the Government of India
(b) Issues currency notes as per its own statutory authority
(c) Issues currency notes without any backing
(d) Issues currency notes with approval of Parliament

Q6. (UPSC Prelims 2016)

Which one of the following is not a function of the Reserve Bank of India?

(a) Clearing house functions for banks
(b) Controller of credit
(c) Custodian of foreign exchange
(d) Determination of minimum support prices

Q7. (UPSC Prelims 2017)

Which of the following statements is/are correct regarding RBI?

1. RBI acts as banker to the Government of India.

2. RBI manages public debt of the Government of India.

Select the correct answer:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Q8. (UPSC Prelims 2015)

Which of the following are included in the instruments of monetary policy?

1. Open Market Operations
2. Cash Reserve Ratio
3. Statutory Liquidity Ratio
4. Repo Rate
Select the correct answer:
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Monetary policy is the RBI’s primary instrument to balance inflation control with growth imperatives.

Understanding tools like repo rate, CRR, SLR, OMO, and LAF is essential to analyse inflation trends, liquidity conditions, monetary transmission, and policy stance—frequently tested across UPSC Prelims and Mains with strong linkage to current affairs.

@pragati_mentorship

India's Minerals Diplomacy

@upscwithkunal

Money Supply Measures | RBI | UPSC Prelims + Mains

Understanding M0, M1, M2 and M3 is non-negotiable for UPSC Economics.
This infographic clearly explains Reserve Money, Narrow Money, Intermediate Money and Broad Money, along with their components, liquidity, and policy relevance.
🔹 M0 – High Powered Money (RBI’s direct control)
🔹 M1 – Transactional money (most liquid)
🔹 M2 – M1 + Post Office savings
🔹 M3 – Broad Money (most important for inflation & growth)
📌 Prelims Focus:
✔️ M3 = Broad Money
✔️ M0 × Money Multiplier = M3
✔️ RBI primarily tracks M3 growth
Curated and simplified by Pragati Mentorship to help you revise smartly, not repeatedly.
Stay consistent. Stay conceptual.
UPSC is about clarity, not volume.

#monetarytools #RevisionNotes #ConceptClarity #SmartPreparation #PragatiMentorship #ExamFocused

@pragati_mentorship

Understanding banking classifications is crucial for UPSC GS-III.
This one-page notes-style infographic simplifies:
✔ Scheduled vs Non-Scheduled Banks
✔ Small Finance & Payments Banks
✔ Cooperative Banking Structure
Revise smart. Revise relevant.
Pragati Mentorship


@pragati_mentorship.

1.With reference to Regional Rural Banks (RRBs), consider the following statements:

1. RRBs are owned by the Central Government, the State Government and the sponsoring bank.

2. RRBs can provide loans only to the weaker sections.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2