36. What is the current Statutory Liquidity Ratio (SLR) in India?
a) 18%
b) 19%
c) 20%
d) 21%
37. How does an increase in the Statutory Liquidity Ratio (SLR) affect the banking sector?
a) Reduces profitability for banks
b) Increases liquidity for banks
c) Decreases liquidity for banks
d) Has no direct impact on banks
38. Which of the following is a quantitative tool of monetary policy?
a) Credit rationing
b) Moral suasion
c) Fiscal stimulus
d) Open market operations
39. How does the Reserve Bank of India manage the exchange rate of the Indian Rupee?
a) By pegging it to a basket of foreign currencies
b) By allowing it to float freely in the foreign exchange market
c) By setting a fixed exchange rate against major currencies
d) By printing more currency notes
40. What is the role of the Reserve Bank of India in managing credit flow to various sectors?
a) It provides loans directly to businesses and individuals
b) It regulates interest rates offered by commercial banks
c) It formulates policies to encourage lending to priority sectors
d) It controls the supply of money in the economy
