A Quiz on monetary policy

The main objectives of CRR and SLR are to ensure :

Liquidity position of Bank

Financial position of Bank

Profit position of Bank.

If RBI reduces the cash reserve ratio, what will happen to credit creation?

There will be no impact

It will decrease

It will increase

The primary purpose of the RBI monetary policy is to maintain:


exchange rate

price stability

The monetary policy stances in which interest rates may move either way upwards or downwards is called

Accomodative Stance

Neutral Stance

Calibarated Stance

What happens when  CRR is increased?

It decrease inflation

It decrease money supply


Which of the following counts under SLR?

Cash in Hand

Gold owned by the bank


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

Repo rate



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

Finance Minister

Prime minister

RBI Governor

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

Quantitative instruments

Qualitative instruments

Money Instruments

Other Quiz stories

Employment And Unemployment Quiz

Economics Quiz On Supply And Demand

Economics Quiz With Answers