RBI Monetary Policy and Liquidity Management
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Questions and Answers

What was the condition of liquidity in the system since mid-2019?

  • Deficit
  • Stable
  • Surplus (correct)
  • Neutral

    • What event in 2020-21 led to the easing of liquidity conditions?

  • Monetary policy tightening
  • Covid pandemic (correct)
  • Economic downturn
  • Fiscal policy changes

    • What type of reverse repo auctions did the RBI engage in during 2021-22?

  • Market based forward repo
  • Variable Rate Reverse Repo (VRRR) (correct)
  • Liquidity Adjustment Facility (LAF)
  • Fixed rate forward repo

    • What was the RBI's monetary policy stance during 2021-22?

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

    What was the RBI's approach to liquidity operations during 2021-22?

    <p>Phased resumption of normal liquidity operations</p> Signup and view all the answers

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