Monetary Policy

Welcome to Quiz on Monetary Policy

Which one of the following is not an instrument of selective credit control in India?

Bank Rate implies the rate of interest:

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

The accounting year of the Reserve Bank of India is:

Consider the following statements regarding Reserve Bank of India 1. It is a banker to the Central Government 2. It formulates and administers monetary policy 3. It acts as an agent of the Government in respect of India 4. It handles the borrowing programme of Government of India Which of these statements are correct?

Consider the following statements: 1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India. 2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population. Which of the statements given above is/are correct?

An increase in the Bank Rate generally indicates that the

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?

The Reserve Bank of India regulates the commercial banks in matters of 1. liquidity of assets 2. branch expansion 3. merger of banks 4. winding-up of banks Select the correct answer using the codes given below.

In the context of Indian economy, which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements'? 1. To enable the Central Bank to control the amount of advances the banks can create 2 To make the people's deposits with banks safe and liquid 3. To prevent the commercial banks from making excessive profits 4. To force the banks to have sufficient vault cash to meet their day-to-day requirements Select the correct answer using the code given below.

With reference to Indian economy, consider the following 1. Bank rate 2. Open market operations 3. Public debt 4. Public revenue Which of the above is/are component/ components of Monetary Policy?

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

In the context of Indian economy, 'Open Market Operations' refers to

The terms "Marginal Standing Facility Rate' and 'Net Demand and Time Liabilities', sometimes appearing in news, are used in relation to

The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following? 1. Other banks retain their deposits with the RBI. 2. The RBI lends funds to the commercial banks in times of need. 3. The RBI advises the commercial banks on monetary matters. Select the correct answer using the codes given below:

The Reserve Bank of India' s recent directives relating to 'Storage of Payment System Data', popularly known as data diktat command the payment system providers that: 1. They shall ensure that entire data relating to payment systems operated by them are stored in a system only in India. 2. They shall ensure that the systems are owned and operated by public sector enterprises. 3. They shall submit the consolidated system audit report to the comptroller and Auditor General of India by the end of the calendar year. Which of the statements given above is/are correct?

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Central Bank 2. Deposit of currency in commercial banks by the public 3. Borrowing by the government from the Central Bank 4. Sale of government securities to the public by the Central Bank Select the correct answer using the codes given below

The money multiplier in an economy increases with which one of the following?

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below:

Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 3. Treasury bills offer are issued at a discount from the par value. Which of the statements given above is/are correct?

The lowering of Bank Rate by the Reserve Bank of India leads to

Supply of money remaining the same when there is an increase in demand for money, there will be

If the interest rate is decreased in an economy, it will

Consider the following statements: 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest. 3. The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct?

In India, the central bank's function as the lender of last resort' usually refers to which of the following? 1. Lending to trade and industry bodies when they fail to borrow from other sources 2. Providing liquidity to the banks having a temporary crisis 3. Lending to governments to finance budgetary deficits Select the correct answer using the code given below.

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