Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing

Search...

12 Questions

1 Views

RBI's Monetary Policy Tools

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of open market operations?

To influence the money supply in the economy (correct)

To manage the foreign exchange rate

To regulate the interest rates in the economy

To stimulate economic growth

What happens to the money supply when the RBI increases the reserve ratio?

It becomes unpredictable

It remains unchanged

It increases

It decreases (correct)

What is the name of the tool used by the RBI to persuade commercial banks to discourage or encourage lending?

Quantitative easing

Open Market Operations

Margin requirement

Moral suasion (correct)

What is the effect on lending by banks when the RBI changes the reserve ratio?

It decreases Signup and view all the answers

What is the purpose of the RBI buying government bonds in the open market?

To increase the money supply Signup and view all the answers

What is the name of the tool used by the RBI to control the extent of money supply by changing the bank rate?

Quantitative tool Signup and view all the answers

What is the effect of a cheque issued by the RBI on the money supply?

It increases the money supply Signup and view all the answers

What is the result of the RBI selling a bond to private individuals or institutions?

It reduces the quantity of reserves and hence the money supply Signup and view all the answers

What is the characteristic of outright open market operations?

It is permanent in nature Signup and view all the answers

What is the purpose of changing the bank rate by the RBI?

To decrease the money supply Signup and view all the answers

What is the rate at which the RBI lends money to commercial banks?

Bank rate Signup and view all the answers

What is the purpose of repo and reverse repo operations conducted by the RBI?

To influence the money supply Signup and view all the answers