Monetary Policy MCQ — 1 Practice Questions with Answers

Practice 1 Monetary Policy multiple-choice questions with detailed answers and explanations. Ideal for RAS/RPSC exam preparation.

1 Questions Indian Economy

Q1. Through Open Market Operations (OMO), the RBI injects liquidity into the banking system by:

A Raising the Cash Reserve Ratio (CRR)

B Selling government securities to banks

C Buying government securities from banks Correct

D Increasing Statutory Liquidity Ratio (SLR)

Explanation

When the RBI buys government securities from banks through OMO, it releases rupee cash to the banks, increasing banking system liquidity. Selling securities does the opposite — it absorbs liquidity.

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There are 1 Monetary Policy practice MCQs available on Aspirant Academy, with detailed answers and explanations for each question.

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Yes, every Monetary Policy question comes with the correct answer and a detailed explanation to help you understand the underlying concept.

How is Monetary Policy relevant to the RAS/RPSC exam?

Monetary Policy falls under the Indian Economy section of the RAS/RPSC syllabus. It is a frequently tested area and regular practice with these MCQs will strengthen your preparation.

Can I practice Monetary Policy questions in Hindi?

Yes, Aspirant Academy offers bilingual support. You can practice Monetary Policy MCQs in both English and Hindi, including questions, options, and explanations.

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Monetary Policy MCQ — 1 Practice Questions with Answers

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