The term 'Repo' in monetary policy stands for: MCQ with Answer and Explanation

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The term 'Repo' in monetary policy stands for:

A. Reserve Position

B. Repurchase Agreement

C. Rate of Preferential Operation

D. Reverse Purchase Order

Answer: Option B

Solution (By JKSSB Mock Tests)

Repo stands for Repurchase Agreement, under which RBI lends money to banks against government securities with an agreement to repurchase them at a later date.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'RBI Act' was amended in 2016 to give statutory backing to:

A. inflation targeting and the Monetary Policy Committee

B. payment banks

C. digital currency

D. financial inclusion

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Correct Answer: Option A

Explanation:
The RBI Act amendment in 2016 gave statutory backing to flexible inflation targeting and the MPC.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following would most likely cause the rupee to appreciate?

A. Increase in imports

B. Higher domestic inflation

C. Large capital inflows into India

D. Lower foreign investment

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Correct Answer: Option C

Explanation:
Large capital inflows increase demand for rupee, causing appreciation.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Saubhagya' scheme is implemented by which ministry?

A. Ministry of Housing

B. Ministry of Rural Development

C. Ministry of Power

D. Ministry of Petroleum

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Correct Answer: Option C

Explanation:
Saubhagya scheme is implemented by the Ministry of Power.

This question belongs to: Economy GK Economy Set 1

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