Which of the following is a tool of quantitative monetary policy? MCQ with Answer and Explanation

Which of the following is a tool of quantitative monetary policy?
A. Direct action
B. Credit rationing
C. Moral suasion
D. Open Market Operations
Answer: Option D
Solution (By JKSSB Mock Tests)
Open Market Operations (buying and selling of government securities by RBI) is a quantitative tool that affects the overall volume of credit and money supply.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on BPO services is:
A. 28%
B. 5%
C. 18%
D. 12%

Correct Answer: Option C


Explanation:
BPO services attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Blue Revolution' in India is associated with:
A. fisheries and aquaculture development
B. poultry farming
C. milk production
D. oilseeds production

Correct Answer: Option A


Explanation:
The Blue Revolution refers to the development of fisheries and aquaculture.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'investment multiplier' is greater when the marginal propensity to consume is:
A. higher
B. lower
C. negative
D. zero

Correct Answer: Option A


Explanation:
The multiplier is higher when MPC is higher because more of each income increase is spent.

This question belongs to: Economy GK Economy Set 1