The repo rate is the rate at which the RBI does what?
Correct answer A. Lends short-term funds to banks against government securities
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RBI and Monetary Policy MCQs
Page 3 of RBI and Monetary Policy multiple-choice questions with answers. Tap an option to check yourself.
Page 3 of 3
The Standing Deposit Facility, which absorbs liquidity without collateral, was introduced by RBI in which year?
Correct answer C. 2022
Under the Liquidity Adjustment Facility, which rate forms the floor of the policy corridor?
Correct answer A. Standing Deposit Facility rate
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Which facility lets scheduled banks borrow overnight from RBI by dipping into their SLR holdings up to a limit?
Correct answer A. Marginal Standing Facility
The Liquidity Adjustment Facility was introduced in India in which year?
Correct answer B. 2000
The Cash Reserve Ratio requires banks to keep a share of their net demand and time liabilities in what form?
Correct answer A. Cash balances with the RBI
The Statutory Liquidity Ratio is prescribed under which Act?
Correct answer C. Banking Regulation Act, 1949
Which of the following can a bank hold to meet its Statutory Liquidity Ratio?
Correct answer D. Unencumbered government securities
If the RBI raises the Cash Reserve Ratio, what is the likely immediate effect?
Correct answer A. Bank liquidity available for lending falls
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The bank rate is defined under which section of the RBI Act, 1934?
Correct answer D. Section 49