RBI & Policy — Set 8
Economics · RBI और नीति · Questions 71–80 of 120
The 'Findex' or Financial Inclusion Index is published by?
Correct Answer: B. RBI
The RBI introduced a comprehensive Financial Inclusion Index in 2021 to measure the extent of financial inclusion across the country. It considers factors like access, usage, and quality of financial services. The index score ranges from 0 to 100, where 100 represents full inclusion.
Which specialized body within the RBI manages the 'National Electronic Funds Transfer' (NEFT)?
Correct Answer: B. IFTAS
Indian Financial Technology and Allied Services (IFTAS) is a wholly-owned subsidiary of the RBI that provides critical infrastructure for payment systems. NEFT is a nationwide payment system allowing one-to-one funds transfer. It operates on a near real-time basis in half-hourly batches.
The 'Base Effect' often discussed in RBI policy reports refers to?
Correct Answer: A. Impact of last year's data on current inflation growth
The Base Effect occurs when a very high or low inflation rate in the previous year distorts the current year's percentage change. It can make current inflation look deceptively high or low. Analysts adjust for this to understand the underlying price trends.
Which of the following is the 'Open Mouth Operation' of a central bank?
Correct Answer: D. Verbal signals or statements to influence markets
Open Mouth Operations refer to statements by central bank officials aimed at influencing market expectations without actual transactions. It is a form of forward guidance. Markets often react strongly to the tone and words used in these official communications.
What is the 'MCLR' (Marginal Cost of Funds based Lending Rate)?
Correct Answer: A. Internal benchmark for bank lending
MCLR was introduced in 2016 to improve the transmission of policy rates into bank lending rates. It is the minimum interest rate below which a bank cannot lend, except in certain cases. It is calculated based on the marginal cost of borrowing for the bank.
Which of the following represents 'Broad Money' in the Indian economy?
Correct Answer: B. M3
M3 is known as broad money and includes M1 plus time deposits (Fixed Deposits) with the banking system. It is a widely used measure to gauge the total liquidity available in the economy. Changes in M3 are closely linked to inflation and economic activity.
The 'Accommodation' stance of monetary policy means the RBI is willing to?
Correct Answer: B. Decrease or maintain low rates to support growth
An accommodative stance implies that the RBI's priority is to stimulate the economy by ensuring ample liquidity and low interest rates. It is usually adopted during periods of slow economic growth. This stance signals to the market that a rate hike is unlikely in the near future.
Who is the ex-officio Secretary to the Monetary Policy Committee?
Correct Answer: A. Executive Director in charge of monetary policy
The Executive Director of the RBI overseeing the Monetary Policy Department serves as the secretary to the MPC. They coordinate the meetings and data presentation for the members. This ensures a professional and data-driven approach to rate-setting.
The 'Legal Reserve Ratio' is the combination of which two components?
Correct Answer: A. CRR and SLR
Legal Reserve Ratio (LRR) is the total percentage of deposits that banks are legally required to keep aside, not for lending. It is the sum of the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR). A higher LRR reduces the credit creation capacity of the banking system.
Which city is home to the 'Indira Gandhi Institute of Development Research' (IGIDR)?
Correct Answer: A. Mumbai
IGIDR is an advanced research institute established by the RBI in 1987 in Mumbai. It focuses on multi-disciplinary research in the areas of economics and development. It is recognized as one of the top economic research centers in Asia.