21. Which of the following cannot be considered as a monetary policy tool?
a) Reserve ratios
b) Repurchase agreements
c) Fiscal stimulus packages
d) Liquidity injections
Answer: c) Fiscal stimulus packages
22. What is the objective of contractionary monetary policy?
a) To stimulate economic growth
b) To control inflation
c) To stabilize exchange rates
d) To increase liquidity in the market
Answer: b) To control inflation
23. What is the benchmark rate for short-term interbank lending in India?
a) Repo rate
b) Reverse repo rate
c) Bank rate
d) Marginal standing facility rate
Answer: a) Repo rate
24. Which rate is equivalent to the Central Bank’s base rate?
a) Repo rate
b) Reverse repo rate
c) Bank rate
d) Marginal standing facility rate
Answer: c) Bank rate
25. What is the current Cash Reserve Ratio (CRR) in India?
a) 3%
b) 4%
c) 5%
d) 6%
Answer: b) 4%
