Regulation of Money Market in India

26. Which of the following instruments is used by the RBI to control money supply in the economy?

a) Repo rate

b) Reverse repo rate

c) Cash reserve ratio (CRR)

d) All of the above

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27. Which of the following is not a characteristic of money market instruments?

a) High rate of return

b) Short maturity period

c) High liquidity

d) Low risk

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28. The Reserve Bank of India conducts monetary policy by changing the __________.

a) Repo rate

b) Reverse repo rate

c) Cash reserve ratio (CRR)

d) All of the above

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29. In the context of money market regulation, what does OMO stand for?

a) Open market obligations

b) Open market orders

c) Open market operations

d) Open market opportunities

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30. Commercial papers can be issued by:

a) Banks

b) Corporates

c) Public sector undertakings

d) All of the above

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