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

    Question

    Which of the following is an instrument of monetary

    policy of RBI? I. Reverse Repo Rate II. Corridor
    A Only II Correct Answer Incorrect Answer
    B Both I and II Correct Answer Incorrect Answer
    C Only I Correct Answer Incorrect Answer
    D Neither I nor II Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. There are several direct and indirect instruments that are used for implementing monetary policy- 1.    Repo Rate 2.    Reverse Repo Rate 3.    Liquidity Adjustment Facility 4.    Marginal Standing Facility 5.    Corridor 6.    Bank Rate 7.    Cash Reserve Ratio 8.    Statutory Liquidity Ratio 9.    Open Market Operations 10. Market Stabilisation Scheme

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