Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
Which of the following statements is/are correct regarding the RBI's role in the foreign exchange market? 1. It manages the Foreign Exchange Reserves of India. 2. It intervenes in the forex market to curb volatility.
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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RBI plays a dual role—managing reserves and intervening to stabilise currency volatility.
Final Answer: Option C — Both 1 and 2