Solved UPSC CDS/OTA Question
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Q · Budget and Its TypesMedium · 45s
Which of the following best describes the function of the Currency Chest maintained by the Reserve Bank of India?
TopicBudget and Its Types
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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Currency chests are storehouses of cash maintained by designated commercial banks on behalf of the RBI. They help in the distribution and withdrawal of currency and ensure smooth cash flow across regions.
Final Answer: Option B — To facilitate the distribution of currency notes to commercial banks