Economy

2 questions

• 2020 · Question 50 · Monetary Policy

  If you withdraw ₹ 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

  Choose your answer

  (a)to reduce it by ₹ 1,00,000(b)to increase it by ₹ 1,00,000(c)to increase it by more than ₹ 1,00,000(d)to leave it unchanged

  Show answer

  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)

• 2020 · Question 57 · Monetary Policy

  If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do ? 1. Cut and optimize the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below :

  Choose your answer

  (a)1 and 2 only(b)2 only(c)1 and 3 only(d)1, 2 and 3

  Show answer

  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)