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Problem 1 - Entrance Test

Which of the following statements accurately reflects the mandate of the Financial Stability and Development Council (FSDC) in India?

Correct: B

The FSDC is a non-statutory apex body constituted to address macro-prudential and financial stability issues. It aims to strengthen and institutionalize the mechanisms for maintaining financial stability and promoting inter-regulatory coordination. It's not a statutory body, doesn't regulate all financial institutions, and isn't an advisory body to the RBI on monetary policy.