Identify the FALSE statement.

Question

Question

This question was previously asked in

SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 02 Aug, 2023 Shift 4)

Answer 1

The correct answer is SEBI conducts open market operations to regulate money supply in the economy.
Key Points

RBI decides the bank rate for the economy which is the rate at which RBI lends money to commercial banks.
SEBI is the Securities and Exchange Board of India which regulates the securities market and does not conduct open market operations.
RBI is responsible for printing currency notes in India.
Ministry of Finance issues coins in India.

Additional Information

Open market operations are conducted by the RBI to regulate the money supply in the economy.
- In this process, RBI buys or sells government securities in the open market to increase or decrease the money supply respectively.
SEBI is responsible for regulating the securities market in India.
- It was established in 1988 and is headquartered in Mumbai.
Ministry of Finance is responsible for managing the finances of the Government of India.
- It is headed by the finance minister and is responsible for formulating and implementing the financial policies of the government.
Bank rate is the rate at which RBI lends money to commercial banks.
- It is an important tool used by RBI to control the money supply in the economy.