Match each RBI instrument to what it does.

Exercise and reference answers

Matching pairs

Left
Repo
Right
RBI lends to banks
Left
Reverse repo
Right
RBI absorbs funds
Left
CRR
Right
Cash kept as reserves
Left
SLR
Right
Liquid reserves held short term
Left
Bank rate
Right
Rate RBI charges banks
Left
Open market operations
Right
Buying or selling bonds

Instructions

Match each instrument to its effect.

Explanation

Repo injects funds against securities with an agreed resale reverse repo withdraws them. CRR is the cash share of deposits SLR is the short-term liquid reserve on top. The bank rate is what the RBI charges banks for loans, and open market operations move money by trading government bonds.

Continue learning with Quill →

Browse more CUET UG questions and exercises →