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Tap every quantitative tool of monetary control.

Exercise and reference answers

Questions
  1. Items
    1. Text
      Cash Reserve Ratio
      Matches the category
      Yes
    2. Text
      Bank rate
      Matches the category
      Yes
    3. Text
      Open market operations
      Matches the category
      Yes
    4. Text
      Moral suasion
      Matches the category
      No
    5. Text
      Margin requirement
      Matches the category
      No
    Category
    Quantitative tools of monetary control
  2. Items
    1. Text
      Issuing currency
      Matches the category
      Yes
    2. Text
      Banker to the government
      Matches the category
      Yes
    3. Text
      Custodian of forex reserves
      Matches the category
      Yes
    4. Text
      Lender of last resort
      Matches the category
      Yes
    5. Text
      Collecting income tax
      Matches the category
      No
    6. Text
      Auditing company books
      Matches the category
      No
    Category
    A function of the RBI
Instructions
Tap only the quantitative tools.

Explanation

Quantitative tools change how much money exists: CRR, bank rate and open market operations. Qualitative tools steer where credit goes, which is what moral suasion and margin requirements do. The RBI issues currency, banks for the government, holds forex reserves and lends to banks in need, but it neither collects taxes nor audits companies.
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