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
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Correct Answer: Open market operations
Solution : The correct answer is Open market operations.
Open market operations are the central banks buying and selling Government Security and bones in the open market to expand or contract the amount of money in the banking system. It is a kind of tool or instrument of the Reserve Bank of India to increase or decrease the money supply in the economy.
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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 1: Marginal Standing Facility
Option 2: Credit Ceiling
Option 3: Open Market Operations
Option 4: Liquidity Adjustment Facility
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 2: Moral Suasion
Option 3: Credit Rationing
Option 4: Margin Requirements
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 : By selling 55 metres of cloth, one gains the selling price of 11 metres. Find the gain percent.
Option 1: 33%
Option 2: 15%
Option 3: 25%
Option 4: 23%
Question : By selling 50 items, a shopkeeper gains the selling price of 10 items. What is his gain percentage?
Option 1: 10%
Option 4: 40%
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