Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
Which of the following is correct about RBI’s monetary policy tools?
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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RBI uses quantitative tools (like CRR, SLR, repo/reverse repo) to manage overall liquidity, and qualitative tools (like credit rationing or moral suasion) to influence sector-specific lending.
Final Answer: Option C - Both A and B