Question : Which of the following is the instrument of monetary policy used by RBI?
Option 1: Base rate
Option 2: Call rate
Option 3: Bank rate
Option 4: Discount rate
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Correct Answer: Bank rate
Solution : The correct option is the Bank rate.
The monetary policy instrument used by the Reserve Bank of India (RBI) is the bank rate. It is the rate at which the RBI lends money to commercial banks, influencing overall economic interest rates—changes in the bank rate impact borrowing costs, credit availability, and economic activity.
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Question : Custom duty is an instrument of
Option 1: Monetary policy
Option 2: Foreign trade policy
Option 3: Industrial policy
Option 4: Fiscal policy
Question : _____________is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks of the country.
Option 1: Reserve Repo Rate
Option 2: Base Rate
Option 3: Marginal Rate
Option 4: Repo Rate
Question : Money multiplier uses which of the following monetary instruments for its calculation?
Option 1: Repo rate
Option 2: Cash Reserve Ratio
Option 3: Reverse repo rate
Option 4: Bank rate
Question : The minimum rate below which banks are not allowed to lead money except in cases specified by the Reserve Bank of India is called ______.
Option 1: repo rate
Option 2: reverse repo rate
Option 3: cash rate
Option 4: base rate
Question : What is the meaning of reverse repo rate?
Option 1: The rate at which RBI borrows money from foreign banks.
Option 2: The rate at which RBI borrows money from commercial banks.
Option 3: The rate at which commercial banks borrow money from RBI.
Option 4: The rate at which commercial banks borrow money from foreign banks.
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