41. What is the purpose of the Reserve Bank of India’s priority sector lending targets?
a) To encourage lending to high-risk sectors
b) To prioritize lending to agriculture, small businesses, and low-income borrowers
c) To control inflation by limiting credit availability
d) To ensure banks maintain adequate reserves to meet customer withdrawals
42. How does the Reserve Bank of India regulate the interest rates offered by commercial banks?
a) By fixing specific interest rate ceilings and floors
b) By directly setting interest rates for all loans and deposits
c) By providing guidelines and setting policy rates
d) By limiting the amount of money banks can lend
43. What is the current Reverse Repo Rate in India?
a) 3.35%
b) 4.00%
c) 4.50%
d) 5.00%
44. Which policy rate is used by the Reserve Bank of India to manage the short-term liquidity situation?
a) Repo rate
b) Reverse repo rate
c) Bank rate
d) Cash reserve ratio
45. How does the Monetary Policy Committee (MPC) arrive at its decision regarding policy rates?
a) By consensus among the members
b) By voting, with each member having equal weightage
c) By following the guidance of the Finance Minister
d) By conducting a public survey
