Question : The Fiscal policy achieves the macroeconomic goals by using which of the following instruments?
Option 1: Taxes
Option 2: Statutory Liquidity Ratio
Option 3: Cash reserve ratio
Option 4: Bank rate
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Correct Answer: Taxes
Solution : The correct option is Taxes.
Governments can adjust tax rates and policies to influence disposable income for individuals and businesses. Tax cuts can boost spending and economic activity, while tax hikes can have the opposite effect.
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Question : The monetary policy instrument called "bank rate" is aligned to ______________.
Option 1: liquidity adjustment facility
Option 2: cash reserve ratio
Option 3: discount rate
Option 4: the marginal standing facility rate
Question : Which of the following is not a monetary policy instrument of RBI?
Option 1: Government Spending
Option 2: Bank Rate
Option 3: Open Market Operations
Option 4: Cash Reserve Ratio
Question : The commercial banks of India have to maintain a minimum percentage of cash, gold and other securities before lending loans to their customers. This is called the ____________.
Option 1: Capital Adequacy Ratio
Option 2: Current Account and Savings Account Ratio
Option 3: Statutory Liquidity Ratio
Question :
Variations in the Cash Reserve Ratio and Open Market Operations are instruments of:
Option 1:
Budgetary policy
Option 2:
Trade policy
Option 3: Fiscal policy
Option 4: Monetary policy
Question : The rate at which the Reserve Bank of India lends to other commercial banks for the short term has been reduced. What is this rate called?
Option 1: Cash Reserve Rate
Option 2: Reverse Repo Rate
Option 3: Bank Rate
Option 4: Repo Rate
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