Q. Consider the following:
1.Currency in circulation
2.Forex reserves
3.Government securities
Which of the above will qualify as the asset of the Reserve Bank of India?
Red Book
Red Book

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

A typical central bank balance sheet is somewhat like this-The liabilities side of it comprises the currency in circulation, commercial bank reserves (money kept by lenders with it) and government reserves (State balances kept with it). The asset side has forex reserves, government securities and gold.

Source- Article


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