CBSE Class 12-commerce Macroeconomics Functions of RBI and Instruments of Monetary Policy

Understand the functions of RBI from the CBSE Class 12 Commerce Economics chapter Money and Banking by referring to the revision notes, sample papers, past years’ papers etc. at TopperLearning.

The Reserve Bank of India plays a crucial role here. The commercial banks as a guarantor and extends loans to ensure the solvency of a crisis. This system of guarantee assures individual account holders that the bank will be able to pay their money back in case of a crisis and there is no need to panic. Also, learn why the monetary authority is known as the lender of the last resort.