Multiple Choice Questions on If RBI changes the Repo rate it automatically leads to a change in which of the following monetary p........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

If RBI changes the Repo rate it automatically leads to a change in which of the following monetary p...........

Economic Affairs Money Supply and Monetary Policy
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    If RBI changes the Repo rate, it automatically leads to a change in which of the following monetary policy tools?

    1. Reverse Repo rate

    2. Statutory Liquidity Ratio (SLR)

    3. Cash Reserve ratio (CRR)

    Select the correct answer using the codes below

    2 and 3 only

    Incorrect Answer

    1 only

    Incorrect Answer

    1 and 3 only

    Incorrect Answer

    None of the above

    Correct Answer
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    Explanation:

    All are independently changed based on market condition. However the repo and reverse repo are usually changed with certain gap in base points but it is not a rule to change both.

    By: Pradeep Kumar
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