The 'repo' in monetary policy means the RBI: MCQ with Answer and Explanation

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The 'repo' in monetary policy means the RBI:

A. sells securities to banks and agrees to repurchase them later

B. purchases securities from banks with an agreement to sell them back later

C. gives unsecured loans to banks

D. borrows from foreign central banks

Answer: Option B

Solution (By JKSSB Mock Tests)

In a repo, the RBI purchases securities from banks with an agreement to resell them later, injecting liquidity.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Startup India Seed Fund Scheme' provides:

A. pension to workers

B. subsidies to farmers

C. loans to large companies

D. seed funding to startups

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Correct Answer: Option D

Explanation:
Startup India Seed Fund Scheme provides seed funding to startups.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Ninth Five Year Plan' period was:

A. 2002-2007

B. 1992-1997

C. 1995-2000

D. 1997-2002

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Correct Answer: Option D

Explanation:
The Ninth Five Year Plan covered 1997-2002.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of a developed money market?

A. Only long-term government securities

B. Absence of short-term instruments

C. Presence of a wide range of instruments and high liquidity

D. High transaction costs and low participation

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Correct Answer: Option C

Explanation:
A developed money market features a variety of short-term instruments, high liquidity, low transaction costs and active participation by financial institutions.

This question belongs to: Economy GK Economy Set 1

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