Fiscal and Monetary Policy Quiz
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Questions and Answers

Which of the following is a contractionary fiscal policy measure?

  • Decreasing government spending
  • Selling government bonds
  • Decreasing taxes
  • Increasing taxes (correct)

    • What factors impede the transmission of monetary policy?

  • Interest rate subsidies
  • SLR (statutory liquidity ratio)
  • None
  • Both (correct)

    • Who was the RBI governor from 2003 to 2007?

  • D. Subbarao (correct)
  • Dr. Bimal Jalan
  • S. Venkitaramanan
  • Y.V. Reddy

    • How many members constitute the Monetary Policy Committee (MPC) in India?

    <p>5</p> Signup and view all the answers

    What is the primary tool used by the Monetary Policy Committee (MPC) to control inflation and stimulate economic growth?

    <p>Setting the repo rate</p> Signup and view all the answers

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