Question : _____ refers to a method adopted by the Central Bank to persuade or convince commercial banks to advance credit in the economic interest of the country.
Option 1: Marginal Standing Facility
Option 2: Moral Suasion
Option 3: Credit Rationing
Option 4: Margin Requirements
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Correct Answer: Moral Suasion
Solution : The correct option is Moral suasion.
Moral suasion is a method employed by central banks to influence or persuade commercial banks to act in a certain way, typically in line with the economic policies and objectives of the central bank. This persuasion is based on moral or ethical grounds rather than legal or regulatory mandates.
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Question : Which RBI tool refers to the buying and selling of bonds issued by the Government in the open market?
Option 1: Liquidity adjustment facility
Option 2: Moral suasion
Option 3: Marginal standing facility
Option 4: Open market operations
Question : _____________is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks of the country.
Option 1: Reserve Repo Rate
Option 2: Base Rate
Option 3: Marginal Rate
Option 4: Repo Rate
Question : ____________refers to the sale and purchase of government securities by RBI in the open market to influence liquidity in the economy in the medium term.
Option 2: Credit Ceiling
Option 3: Open Market Operations
Option 4: Liquidity Adjustment Facility
Question : What is the meaning of reverse repo rate?
Option 1: The rate at which RBI borrows money from foreign banks.
Option 2: The rate at which RBI borrows money from commercial banks.
Option 3: The rate at which commercial banks borrow money from RBI.
Option 4: The rate at which commercial banks borrow money from foreign banks.
Question : Which of the following options does not constitute a national income measurement method?
Option 1: Credit method
Option 2: Product method
Option 3: Income method
Option 4: Expenditure method
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