Monetary Policy of the RBI

1.

What happens when CRR is increased?

It decreases money supply

It increases demand for money

It decreases inflation

All of the above

2.

Which of the following counts under SLR?

Cash in Hand

Gold owned by the bank

Balance with RBI

All of the above

3.

What do we call the rate at which the Reserve Bank of India lends money to commercial banks?

Repo rate

Reverse repo rate

CRR

SLR

4.

Who is the chairperson of the Monetary Policy committee of India?

Finance Minister

Prime Minister

RBI Governor

Chief Economic Advisor

5.

What do we call the instruments of monetary policy which directly affect the quantity of money supply?

Quantitative instruments

Qualitative instruments

Money instruments

None of the above