New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    With reference to Indian economy, consider the

    following— 1. Bank rate 2. Open market operations 3. Public debt 4. Public revenue Which of the above is/are component/components of Monetary Policy?
    A 1 only Correct Answer Incorrect Answer
    B 2, 3 and 4 Correct Answer Incorrect Answer
    C 1 and 2 Correct Answer Incorrect Answer
    D 1, 3 and 4 Correct Answer Incorrect Answer
    E None of the these Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) uses the monetary policy to manage liquidity or money supply in a manner that balances inflation and at the same time aids growth. The tools RBI uses to manage monetary policy are : 1. Repo and Reverse Repo Rate. 2. Cash Reserve Ratio (CRR). 3. Open Market Operations. 4. Statutory Liquidity Ratio. 5. Bank Rate.

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