Topic: Monetary Policy (21 Questions)

    Which of the following are the sources of income for the Reserve Bank of India?

    • I.Buying and selling Government bonds
    • II.Buying and selling foreign currency
    • III.Pension fund management
    • IV.Lending to private companies
    • V.Printing and distributing currency notes

    Consider the following statements in respect of the digital rupee:

    • 1.It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
    • 2.It appears as a liability on the RBI's balance sheet.
    • 3.It is insured against inflation by its very design.
    • 4.It is freely convertible against commercial bank money and cash.

    Which of the statements given above are correct?

    With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of:

    2023

    Consider the following statements:
    * Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.
    * Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.
    Which one of the following is correct in respect of the above statements?

    2023

    Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?

    2022

    With reference to the Indian economy, consider the following statements:
    1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
    2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
    3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
    Which of the statements given above are correct?

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