Attempt this previous-year question. The correct option stays hidden until you choose.
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:
Pick an option to check yourself.
• Correct Answer: B
• Raising MSF rate is contractionary; RBI would not do this under expansionary policy.
• Cutting SLR, Bank Rate, and Repo Rate injects liquidity and expands money supply.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram