Quiz on RBI monetary policy and guidelines- by BA Ahmedabad

Under section 45 ZA the central government in consultation with RBI determines inflation target in terms of _______ once every ____ years and notifies it in official gazzette

• Consumer Price Index, 4
• Wholsesale price Index, 4
• Consumer Price Index, 5
• Wholesale Price Index, 5

What is the upper tolerance limit of inflation of period April 2021 to March 2026

• 4%

• 5%

• 6%

• 7%

RBI monetary policy committee consists of __ members

• 5
• 6
• 8
• 10

Which of the following constitues failure to achieve the inflation target as per monetary policy (select all that apply)

• Average inflation is more than uppeer tolerance for 3 consecutive quarters
• Average inflation is more than upper tolerance for 3 consecutive years
• Average inflation is less than lower tolerance for 3 consecutive quarters
• Average inflation is less than lower tolerance for 3 consecutive qyears

When the bank fails to meet the inflation target it shall set out in a report to Central government which of the following (select all that apply)

• The reasons for failure to achieve inflation target
• Remedial actions proposed to be taken by Bank
• Reviewing the policy parameters to ensure that inflation target is achieved
• An estimate time period within which inflation target shall be achieved

The operating framework of monetary policy aims at aligning the operating target i.e the weighted average call rate (WACR) with __

• Bank rate
• Repo rate
• Reverse repo rate
• Marginal Standing facility rate (MSF)

Which of the following is key deteminant of inflation & growth?

• Price stability
• Aggregate Demand
• Push-pull effect
• Aggregate supply side pressure

Who among the following are the members of Monetary policy committee (MPC)?

• Governor RBI
• Deputy Governor of RBI in charge of monetary policy
• Officer RBI nominated by Central Board
• Secretary, Finance ministry

Monetary policy committee is required to meet at least ___ times a year

• 2
• 3
• 4
• 5

The quorum of meeting of the MPC is ___ members

• 3
• 4
• 5
• 6