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
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Correct Answer: Government Spending
Solution : The correct answer is Government spending.
Government Spending is not a monetary policy instrument of the Reserve Bank of India (RBI). The other options - Bank Rate, Open Market Operations and Cash Reserve Ratio - are indeed monetary policy instruments used by the RBI to regulate the money supply, and influence economic conditions. Government spending, on the other hand, falls under fiscal policy and is primarily determined by the government rather than the central bank.
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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 : 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
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 : Identify the false statement.
Option 1: RBI decides the bank rate for the economy.
Option 2: SEBI conducts open market operations to regulate money supply in the economy.
Option 3: RBI prints the 100 currency notes.
Option 4: Ministry of Finance issues 1 rupee coin.
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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