A
Enforce maritime transit passages under the United Nations Convention on the Law of the Sea
B
Encourage foreign capital inflows and manage foreign exchange reserves
C
Regulate cooperative society elections and rural retail networks in states
D
Directly subsidize the domestic retail prices of petrol and ethanol-blended fuel
Correct answer: (b) Encourage foreign capital inflows and manage foreign exchange reserves
Explanation
Option B is correct because FCNR(B) deposit schemes and forex swap facilities are monetary and foreign exchange management tools used by the central bank to attract foreign capital inflows and manage liquidity. Options A, C, and D pertain to cooperation ministries, fuel blending policies, and maritime law, which are unrelated to RBI's FCNR(B) mechanism.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2017 · Q77 · General Studies · 2 marks
Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below: -
2017 · Q81 · General Studies · 2 marks
What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: -
2026 · Q99 · General Studies · 2 marks
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2020 · Q50 · General Studies · 2 marks
If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be -
2020 · Q70 · General Studies · 2 marks
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