Monetary Policy of Reserve Bank of India

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46. What is the purpose of the Liquidity Coverage Ratio (LCR)?

a) To ensure banks maintain sufficient high-quality liquid assets

b) To control inflation by limiting credit availability

c) To regulate interest rates offered by commercial banks

d) To ensure banks maintain enough reserve balances with the central bank

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47. How does the Reserve Bank of India influence long-term interest rates in the economy?

a) By changing the Cash Reserve Ratio (CRR)

b) By changing the Repo rate

c) By changing the Bank rate

d) By conducting open market operations

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48. Which of the following is NOT a quantitative tool of monetary policy?

a) Reserve ratios

b) Lending rate ceilings

c) Open market operations

d) Policy rate changes

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49. How does the Reserve Bank of India use the Marginal Standing Facility (MSF) rate?

a) To provide overnight liquidity support to banks against eligible securities

b) To regulate the interest rates offered by commercial banks

c) To control inflation by limiting the amount of money banks can lend

d) To influence exchange rates in the foreign currency market

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50. What is the purpose of the Reserve Bank of India’s foreign currency swap facility?

a) To stabilize the foreign exchange market

b) To control inflation by limiting credit availability

c) To regulate interest rates offered by commercial banks

d) To manage liquidity in the banking system

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The RATES Mentioned above will change from time to time. These rates are not final rates. Please refer RBI for real time rates


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