Notes and currency held with the public will be considered part of which of the following measures of money supply?

What is/are the difference(s) between repo and reverse repo rate?

1. Repo rate applies only to borrowings of banking institutions, whereas reverse repo is used for the financial deposits and borrowings of all financial institutions in Indian registered with RBI.

2. An increase in repo rate has the opposite effect on primary liquidity in the economy as an increase in reverse repo rate.

Which of the above is/are correct?

If RBI changes the Repo rate, it automatically leads to a change in which of the following monetary policy tools?

1. Reverse Repo rate

2. Statutory Liquidity Ratio (SLR)

3. Cash Reserve ratio (CRR)

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Currency Deposit Ratio (CDR) in India is likely to increase in times of

Inflation targeting is practiced in India through a Monetary Policy Framework Agreement between the Government of India and Reserve Bank of India. If RBI fails to meet the inflation target, the agreement says that

1. The Chairman of the Monetary Policy Committee (MPC) RBI should resign

2. RBI should communicate the causes of such failure to the government and give the steps to tame inflation

3. RBI should immediately increase the CRR and Repo rates to cut down the inflation

4. The Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) should be closed down

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