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IBPS RRB Monetary Policy — practice questions — page 2

Explore 71 free Monetary Policy questions in IBPS RRB Banking Awareness. Open each question or exercise to read its content, reference answers and available explanation.

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Monetary Policy questions and exercises with answers

Showing questions 31–60 of 71.

Regional rural banks must hold their entire SLR in:Read the answer and worked solution →Non-government provident funds must invest what share of accretions in G-Secs?Read the answer and worked solution →Special securities are issued by the Government to entities such as:Read the answer and worked solution →Match each instrument to its shapeRead the answer and worked solution →Sort each item by how long it runsRead the answer and worked solution →True or false about liquidity toolsRead the answer and worked solution →Does the move add or drain liquidity?Read the answer and worked solution →Fill the gaps in the liquidity toolkitRead the answer and worked solution →Order an open market saleRead the answer and worked solution →Spot the one that does not fitRead the answer and worked solution →Pick the right answer, quicklyRead the answer and worked solution →The primary objective of RBI's monetary policy is to maintain:Read the answer and worked solution →In May 2016 the RBI Act was amended to give a statutory basis to:Read the answer and worked solution →The inflation target is set by the Central Government in consultation with RBI once in every:Read the answer and worked solution →The CPI inflation target notified on August 5, 2016 was:Read the answer and worked solution →The upper and lower tolerance limits around the inflation target are:Read the answer and worked solution →The Monetary Policy Committee under Section 45ZB has how many members?Read the answer and worked solution →Inflation stays above the upper tolerance level for three consecutive quarters. This counts as:Read the answer and worked solution →Who chairs the Monetary Policy Committee?Read the answer and worked solution →The MPC must meet at least how many times a year?Read the answer and worked solution →The quorum for an MPC meeting is:Read the answer and worked solution →When MPC votes are equal, who has the casting vote?Read the answer and worked solution →The rate at which RBI lends to banks under the LAF against government securities is the:Read the answer and worked solution →The SDF rate is placed how far below the policy repo rate?Read the answer and worked solution →Since April 2022, the floor of the LAF corridor is the:Read the answer and worked solution →Banks can borrow overnight from RBI by dipping into their SLR up to 2 percent under the:Read the answer and worked solution →The MSF rate sits how far above the policy repo rate?Read the answer and worked solution →The ceiling of the LAF corridor is the:Read the answer and worked solution →The Bank Rate is the penal rate for shortfalls in maintaining:Read the answer and worked solution →CRR is maintained as a percent of a bank's:Read the answer and worked solution →

Worked practice questions

Regional rural banks must hold their entire SLR in:

  1. Approved securitisation
  2. Approved securities
  3. Approved subsidiaries
  4. Approved settlements
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Correct answer: B. Approved securities

1. The requirement dates from April 2002. 2. It covers the whole of their SLR holding. 3. It must sit in Government and other approved securities. _Source: RBI, FAQs on the Government Securities Market in India_

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Non-government provident funds must invest what share of accretions in G-Secs?

  1. 30 per cent
  2. 50 per cent
  3. 40 per cent
  4. 20 per cent
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Correct answer: C. 40 per cent

1. The rule took effect from January 2005. 2. It covers superannuation and gratuity funds too. 3. The share is 40 per cent of incremental accretions. _Source: RBI, FAQs on the Government Securities Market in India_

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Special securities are issued by the Government to entities such as:

  1. Old marketing companies
  2. Only marketing companies
  3. Open marketing companies
  4. Oil marketing companies
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Correct answer: D. Oil marketing companies

1. They are issued under the market borrowing programme. 2. Fertiliser companies are another recipient. 3. Oil marketing companies receive them. _Source: RBI, FAQs on the Government Securities Market in India_

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