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RBI and Its Policies · UPSC CDS/OTA · Question 38 of 40

RBI and Its Policies: Which of the following is correct about RBI’s monetary policy tools?

Step-by-step solution. RBI and Its Policies for UPSC CDS/OTA.

Topic
RBI and Its Policies
Subject
General Studies
Difficulty
Medium
Solve Time
45-60 sec

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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

The complete worked 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
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Which of the following is correct about RBI’s monetary… - RBI and Its Policies (General Studies) Solved Question