RBI Assistant / General Awareness

RBI Assistant Monetary Policy and Liquidity practice questions

Try Monetary Policy and Liquidity questions, then start the free General Awareness mini mock.

19 reviewed questions Answer explanations Why each answer works

Sample practice

Monetary Policy and Liquidity questions with answers

Question 1 / Monetary Policy and Liquidity

Which option matches this RBI Assistant Mains General Awareness clue: the rate at which RBI lends short-term funds to banks against securities?

A. Cash Reserve Ratio
B. Statutory Liquidity Ratio
C. Repo rate
D. Reverse repo rate

Correct answer

C. Repo rate

Why

Repo rate is the correct match because it refers to policy lending rate.

Question 2 / Monetary Policy and Liquidity

Which option matches this RBI Assistant Mains General Awareness clue: the rate at which RBI absorbs liquidity from banks against eligible securities?

A. Marginal Standing Facility
B. Reverse repo rate
C. Cash Reserve Ratio
D. Statutory Liquidity Ratio

Correct answer

B. Reverse repo rate

Why

Reverse repo rate is the correct match because it refers to liquidity absorption rate.

Question 3 / Monetary Policy and Liquidity

Which option matches this RBI Assistant Mains General Awareness clue: the share of deposits banks must keep as cash balance with RBI?

A. Cash Reserve Ratio
B. Statutory Liquidity Ratio
C. Marginal Standing Facility
D. Standing Deposit Facility

Correct answer

A. Cash Reserve Ratio

Why

Cash Reserve Ratio is the correct match because it refers to cash reserve requirement.

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