Monetary Policy

Economics ⇒ Money and Banking

Monetary Policy starts at 12 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Monetary Policy. 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

Describe how monetary policy can be used to control inflation.

Describe the relationship between monetary policy and economic growth.

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

Explain how an increase in the Cash Reserve Ratio (CRR) affects the credit creation capacity of commercial banks.

Explain how open market operations can be used to control the money supply in the economy.

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

Explain the impact of an expansionary monetary policy on aggregate demand.

Explain the term 'bank rate' and its significance in monetary policy.

Explain the term 'credit rationing' as used in monetary policy.

Explain the term 'selective credit control' and give one example.

If the RBI increases the Statutory Liquidity Ratio (SLR), what will be the likely effect on the lending capacity of commercial banks?

If the RBI sells government securities in the open market, what will be the effect on the money supply?

Suppose the inflation rate in the economy is rising rapidly. What monetary policy action should the RBI take to control inflation?

What is meant by 'moral suasion' in the context of monetary policy?

What is monetary policy?

What is the Cash Reserve Ratio (CRR)?

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