Monetary policy

What is the primary objective of monetary policy? 

A) Achieving economic growth

B) Controlling inflation and deflation

C) Increasing government spending

D) Regulating fiscal policy

Which of the following is an example of an expansionary monetary policy tool?

A) Open market operations to buy government bonds

B) Raising the reserve requirement for banks

C) Increasing the discount rate

D) Selling government securities in the open market

How does a contractionary monetary policy affect the economy?

A) Increases government spending to boost economic growth

B) Lowers interest rates to encourage borrowing and spending

C) Decreases the money supply to control inflation

D) Encourages exports by devaluing the currency

Which monetary policy tool allows the central bank to borrow money from commercial banks by selling government securities with an agreement to repurchase them at a predetermined future date?

A) Repo rate

B) Reverse repo rate

C) Bank rate

D) Cash Reserve Ratio (CRR)

What does SLR stand for in the context of monetary policy?

A) Statutory Loan Ratio

B) Standard Liquidity Rate

C) Statutory Liability Requirement

D) Statutory Liquidity Ratio

What does NDTL stand for in the context of banking and finance?

A) Non-Debt Tax Liability

B) Net Deposit Time Limit

C) Net Demand and Time Liabilities

D) Non-Discretionary Total Loan

Which entity in the banking system is responsible for setting the Cash Reserve Ratio (CRR) in a country?

A) Ministry of Finance

B) Central Government

C) Reserve Bank of India (RBI) (for India) / Central Bank (for other countries)

D) International Monetary Fund (IMF)

Which monetary policy tool allows the central bank to borrow money from commercial banks by accepting government securities as collateral with an agreement to sell them back at a predetermined future date?

A) Repo rate

B) Reverse repo rate

C) Bank rate

D) Statutory Liquidity Ratio (SLR)

As of September 2021, who was the Governor of the Reserve Bank of India (RBI)?

A) Raghuram Rajan

B) Shaktikanta Das

C) Urjit Patel

D) Duvvuri Subbarao

Who was the first Governor of the Reserve Bank of India (RBI)?

A) C. Rangarajan

B) L. K. Jha

C) Benegal Rama Rau

D) Raghuram Rajan

Which RBI rate is used to measure the cost of short-term funds for banks and is generally higher than the repo rate?

A) Repo rate

B) Reverse repo rate

C) Bank rate

D) Marginal Standing Facility (MSF) rate

What is the technique used for printing the Reserve Bank of India (RBI) appearing on the face of Indian currency notes?

A) Embossing

B) Holography

C) Intaglio printing

D) Watermarking