Monetary Policy

1. The primary purpose of the RBI's monetary policy is to maintain

• 1. Wealth

• 1. Exchange Rate

• 1. Growth

• 1. Price Stability

What will happen to credit creation if the RBI reduces the Cash Reserve Ratio (CRR)?

• 1. There will be no impact

• 1. It will decrease

• 1. It will increase

• 1. Any of the above

Which one is a monetary policy instrument of central banks?

• 1. The money multiplier

• 1. The reserve ratio

• 1. The GDP deflator

• 1. The inflation rate

The monetary policy stance in which interest rates may move either way upwards or downwards is called __________

• 1. Accommodative Stance

• 1. Neutral Stance

• 1. Calibrated Stance

• 1. Hawkish Stance

The rate at which the central bank lends money to commercial banks

• 1. Repo Rate

• 1. Reverse Repo Rate

• 1. Cash Reserve Ratio

• 1. Bank Rate

Quantitative easing is the common name for?

• 1. Asset selling by a central bank

• 1. Asset purchasing by a central bank

• 1. Lowering of the interest rate for commercial bank lending

• 1. When a central bank reduces rates

The Reserve Bank of India(RBI) was established on

• 1st April,1925
  

• 1st April 1935

• 1st April 1945

• 1st April 1955

Which of the following is a qualitative method of credit control of a central bank?

• 1. Bank rate 

• 1. Open market operation 

  2.  

• 1. Rationing of Credit

• 1. All of the above 

Who was the first Indian to become the Governor of the Reserve Bank of India(RBI)?

• 1. Liaquat Ali Khan 

• 1. T.T. Krishnamachari 

• 1. John Mathai 

• 1. C.D. Deshmukh

Which of the following is directly replaced or impacted by the introduction of the Standing Deposit Facility (SDF)?

• Marginal Standing Facility (MSF)
  

• Repo Facility
  

• Reverse Repo Facility as the floor of the LAF corridor
  

• Bank Rate