RBI Monetary Policy, Part 2, Free PDF & LIVE Quiz

Q1. Who is responsible for formulating the Monetary Policy in India?

Q2. What is the primary objective of Monetary Policy?

Q3. What does the acronym NDTL stand for in banking terminology?

Q4. Which of the following is included in the calculation of a bank’s NDTL?

Q5. If SBI has an NDTL of 100 Crore and the CRR is 4.5%, how much must be kept as CRR?

Q6. In what form must the Cash Reserve Ratio (CRR) be maintained with the RBI?

Q7. Which tool requires banks to keep a percentage of NDTL with themselves in the form of liquid assets like gold or securities?

Q8. What is the current SLR rate as per March 2026?

Q9. When a bank faces a “short of funds” and borrows from RBI for the short term/overnight against securities, the interest rate is called:

Q10. What was the maximum limit initially set for borrowing under the Repo Rate relative to NDTL?

Q11. Within the 1% Repo limit, what percentage was specifically mentioned for overnight repos?

Q12. If a bank has exhausted its Repo limit and still needs urgent funds to maintain CRR/SLR, which facility can it use?

Q13. Generally, how does the MSF rate compare to the Repo Rate?

Q14. if the Repo Rate is 6.5%, what is the MSF rate?

Q15. What is the maximum additional percentage of NDTL a bank can borrow under MSF?

Q16. Which two rates are typically kept similar/equal by the RBI?

Q17. The rate at which RBI lends to banks for a longer period without requiring government securities is the:

Q18. What is the main purpose of the Reverse Repo Rate?

Q19. If the money supply increases in the market, what is the expected long-term impact on inflation?

Q20. When inflation is high, what happens to the “value of money”?

Q21. What is the current Reverse Repo Rate as per March 2026?

Q22. Repo and Reverse Repo are parts of which RBI framework?

Q23. When did the RBI first start using the LAF/Repo mechanism?

Q24. What is the full form of OMO?

Q25. What does the RBI do under OMO to decrease the money supply (control inflation)?

Q26. To increase liquidity in the market during deflation, what action will RBI take via OMO?

Q27. Which of the following is a characteristic of “T-Bills” (Treasury Bills)?

Q28. Who are the “Eligible Clients” who can borrow at the Bank Rate?

Q29. Which tool was specifically discussed in the context of the 2016 demonetization to manage liquidity?

Q30. Quantitative tools of monetary policy are also known as:

Q31. Qualitative tools of monetary policy are often called:

Q32. What is “Marginal Requirement” in the context of a loan?

Q33. If the Marginal Requirement for a sector is 20%, how much loan can a person get against a security worth 10 Lakh?

Q34. Why would RBI increase the Marginal Requirement for a specific sector like Automobiles?

Q35. In which sector did the lecturer mention the RBI might keep a lower Marginal Requirement (e.g., 10%)?

Q36. What is “Credit Rationing”?

Q37. Why might RBI direct banks NOT to give loans to certain traders (like onion or potato traders)?

Q38. Regulation of “Consumer Credit” involves changing which of the following?

Q39. If RBI wants to discourage people from taking car loans during high inflation, it will:

Q40. What is “Moral Suasion”?

Q41. Which of the following is an example of “Direct Action” by the RBI?

Q42. Which tool is considered “Indirect” in its approach to influencing the economy?

Q43. The term “WMA” stands for:

Q44. At what rate does the government usually take WMA from the RBI?

Q45. Which of the following is NOT a qualitative tool?

Q46. What happens to NDTL when a customer deposits 10,000 in a savings account?

Q47. If RBI increases the Repo Rate, what is the likely effect on home loan interest rates?

Q48. The Standing Deposit Facility (SDF) rate is currently used to:

Q49. How much minimum amount is generally required for MSF operations?

Q50. Quantitative tools are generally _______ in nature, while Qualitative tools are _______?

Q51. What is the primary “greed” or motive of banks that RBI tries to regulate?

Q52. “Liquidity” in the banking context refers to:

Q53. If the RBI “Sells” a piece of paper (Government Security), what is it taking back from the bank?

Q54. Which of the following is NOT a form of SLR maintenance?

Q55. When banks borrow from each other, it is called:

Q56. Inflation is often described in the session as a situation where:

Q57. The term “Zero Coupon Bond” refers to:

Q58. What is the maximum duration mentioned for a T-Bill in the lecture?

Q59. Which rate acts as the “Floor” (lowest) in the LAF corridor currently?

Q60. Where can students find the PDF of this complete class?