(QUIZ) Economy MCQs : Monetary and Credit Policy

1. Consider the following statements.

1. Monetary policy announced per year
2. Price stability & exchange rate stabilization are the objectives of monetary policy.
3. Credit policy is a part of monetary policy.

Which of the above statements is / are true.

1. 1, 2 & 3
2. 1 & 2 only
3. 2 & 3 only
4. 1 & 3 only

2. Consider the following statements.

1. SLR & CRR, are not the part of monetary policy.
2. CRR is adjusted to manage liquidity & inflation.
3. A purchase of government securities injects money in the market.

Which of the above statements is / are true.

1. 2 & 3 only
2. 1, 2 & 3
3. 1 & 3 only
4. 3 only

3. Consider the following statements.

1. When two parties agree to sell & purchase the same security is called Ready Forward contracts.
2. The Rep / Reverse Repo transaction can only be done at Mumbai & in securities as approved by RBI.
3. Repo & reverse Repo rates are known as policy rates.

Which of the above statements is / are true.

1. 1 & 2 only
2. 2 & 3 only
3. 1 & 3 only
4. 1, 2 & 3

4. Consider the following statements.

1. Funds under LAF (Liquidity Adjustment Facility) are used by the banks for their day to day mismatches in liquidity.
2. All commercial banks are eligible to participate in the marginal standing facility (MSF).

Which of the above statements is / are true.

1. 1 only
2. 2 only
3. Both 1 & 2
4. Neither 1 nor 2

5. Consider the following statements about RBI.

1. It was established in 1935.
2. RBI Nationalised in 1951.
3. RBI Act provides the statutory basis of the functioning of the Bank.

Which of the above statements is / are true.

1. 1, 2 & 3
2. 1 & 3 only
3. 1 & 2 only
4. 2 & 3 only

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