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 12

Define Statutory Liquidity Ratio (SLR).

Describe the process of credit creation by commercial banks with the help of an example.

Describe the process of Open Market Operations and its effect on the money supply.

Describe the role of the Monetary Policy Committee (MPC) in India.

Explain how an increase in SLR affects the lending capacity of commercial banks.

Explain the concept of 'lender of last resort' in the context of central banking.

Explain the difference between expansionary and contractionary monetary policy.

Explain the difference between quantitative and qualitative instruments of monetary policy.

Explain the term 'Bank Rate' and its significance in monetary policy.

Explain the term 'credit control' and its importance in the economy.

Explain the term 'Moral Suasion' as used in monetary policy.

What is meant by 'credit creation' by commercial banks?

What is the full form of CRR in the context of monetary policy?

What is the impact of a decrease in the repo rate on the economy?

What is the main difference between repo rate and reverse repo rate?

What is the primary objective of monetary policy in India?