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UPSC PYQPrelims 2025

Civil Services Examination · Question 32

Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below.

  1. I and II only
  2. II, III and IV
  3. I, III, IV and V
  4. I, II and V
Show answer & explanation

Answer: (A) I and II only

Explanation

RBI earns income through open market operations (govt bonds) and forex operations; it does not manage pension funds or lend to private companies, and printing currency is an expense, not income.