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UPSC 2025: 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:
(a)I and II only
(b)II, III and IV
(c)I, III, IV and V
(d)I, II and V
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Not attemptedCorrect Answer: (d) I, II and V
The RBI earns interest and trading gains from its holdings of government securities as well as from foreign-exchange operations (Statements I & II correct). It also earns seigniorage—the surplus of face value over printing cost—on currency issued, so ‘printing and distributing notes’ yields income (Statement V correct). RBI does not manage pension funds for profit and does not lend directly to private companies, so Statements III and IV are incorrect. Thus Statements I, II and V are correct. ([visionias.in](https://www.visionias.in/blog/subject-strategy/upsc-cse-prelims-2025-detailed-analysis-economics-part-1?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2025 Indian Economy question?▼
The correct answer is option (d): I, II and V. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2025, GS Paper 1, as Question 2. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 48 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.