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Monetary Policy and Central Banking

Economics ⇒ Government and the Economy

Monetary Policy and Central Banking starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Monetary Policy and Central Banking. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.
See sample questions for grade 11
Define 'repo rate' in the context of monetary policy.
Describe the process by which the central bank controls credit through the Cash Reserve Ratio (CRR).
Describe the role of the central bank in controlling inflation.
Explain how an increase in the Statutory Liquidity Ratio (SLR) affects the lending capacity of commercial banks.
Explain the difference between quantitative and qualitative tools of monetary policy.
Explain the impact of a decrease in the repo rate on the economy.
Explain the term 'credit control' in the context of central banking.
Explain the term 'lender of last resort' in the context of central banking.
Explain the term 'Open Market Operations' with an example.
State one difference between the bank rate and the repo rate.
State one reason why the central bank may want to reduce the money supply in the economy.
The central bank acts as a banker to the government. State one function it performs in this capacity.
What is meant by 'moral suasion' as a tool of monetary policy?
What is the main objective of monetary policy in India?