Untitled Presentation

Multiple Choice

Which of the following is a primary objective of monetary policy as described in the slide?

• Controlling inflation

• Increasing exports

• Reducing population

• Improving literacy rates

Open Ended

Why is monetary policy significant for a country's economy?

Multiple Choice

Which of the following is NOT an objective of monetary policy?

• Accelerating economic growth

• Price stability

• Exchange rate stabilization

• Increasing government spending

Open Ended

Explain the difference between expansionary and contractionary monetary policy, and provide an example of when each might be used.

Multiple Select

Which of the following are considered quantitative tools to control money supply?

• Changing the CRR

• Bank rate

• Persuasion by RBI

• Open market operations

Multiple Choice

What happens to the money supply in the economy when the RBI sells government bonds in open market operations?

• Money supply increases

• Money supply decreases

• Money supply remains unchanged

• Money supply fluctuates randomly

Fill in the Blank

The two main instruments under the Liquidity Adjustment Facility (LAF) are ___ and Reverse Repo.

Open Ended

How does an increase in the bank rate affect the money supply in the economy?

Open Ended

Explain how moral suasion is used by the central bank as a qualitative tool in monetary policy.

Multiple Choice

Which of the following is a qualitative tool used in Indian monetary policy to influence the flow of credit to specific sectors?

• Selective Credit Control (SCC’s)

• Repo Rate

• Statutory Liquidity Ratio

• Open Market Operations

Fill in the Blank

Lower domestic interest rates can lead to a ___ of the domestic currency.

Open Ended

Describe how the asset price channel works in the context of monetary policy.

Multiple Select

Which of the following channels are impacted by monetary policy according to the slides?

• Interest Rate Channel

• Exchange Rate Channel

• Credit Channel

• All of the above

Multiple Choice

What are the two main sources of funds for banks as shown in the diagram?

• Bank's Own Funds and Borrowed Funds

• Deposits and Loans

• Government Grants and Investments

• Shareholder Equity and Bonds

Multiple Choice

Which of the following is NOT one of the three main pillars of the Basel III Framework?

• Minimum Capital requirements

• Supervisory Review process

• Market Discipline

• Liquidity Coverage Ratio

Fill in the Blank

Fill in the blank: According to Basel III norms in India, the minimum CET 1 requirement is ___%.

Multiple Choice

Which of the following are sources of a bank's own funds?

• Paid up Capital

• Reserve Fund

• Profit

• All of the above

Open Ended

Explain the primary differences between Common Equity Tier 1 (CET1), Additional Tier 1 (AT1), and Tier 2 capital as sources of banks' own funds.

Multiple Select

Select all types of deposits that are considered borrowed funds for banks.

• Current or demand deposits

• Saving deposits

• Fixed or time deposits

• Shareholder equity

Open Ended

How does borrowing from the central bank help commercial banks during emergencies?

Multiple Choice

Which of the following is NOT a reason for interbank borrowing?

• To manage day-to-day liquidity needs

• To fund an unexpected surge in loan demand

• To borrow on a long-term basis

• To borrow from another bank

Multiple Choice

Which of the following are considered sources of funds for banks?

• Bonds and debentures

• Commercial paper

• Wholesale funding

• All of the above

Open Ended

List and briefly explain two reasons why banks rely on borrowed funds.

Fill in the Blank

A debenture is a type of debt instrument that is not secured by physical asset or ___.

Multiple Select

Which of the following statements about public deposits is/are correct?

• They are a powerful source of funds to a bank

• They include current, saving, and time deposits

• They are directly related to stock market speculation

• They have increased due to growth in business operations

Open Ended

Compare and contrast current deposits, saving deposits, and time deposits in terms of liquidity, interest rate, and withdrawal restrictions.

Open Ended

How does the Reserve Bank of India (RBI) use monetary instruments to influence the economy?

Multiple Choice

What is the main objective of monetary policy as described in the slide?

• To control inflation and promote economic growth

• To increase government spending

• To reduce taxes

• To encourage imports