Liquidity Management — MCQ Practice
Interactive MCQ Practice
Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.
With reference to RBI's liquidity management, consider the following statements: 1. Standing Deposit Facility allows banks to deposit funds without providing collateral 2. Marginal Standing Facility can be accessed only during LAF operating hours 3. Market Stabilization Scheme proceeds are credited to the Consolidated Fund of India 4. Cash Reserve Ratio is maintained on a daily average basis Which of the statements given above are correct?
Which of the following best describes the primary difference between Open Market Operations and Liquidity Adjustment Facility?
Consider the following statements about RBI's liquidity management during COVID-19: 1. Long-Term Repo Operations (LTRO) were introduced for the first time 2. Targeted LTRO was specifically designed for corporate bond investments 3. Operation Twist involved simultaneous OMO purchases and sales 4. Cash Reserve Ratio was reduced to its statutory minimum Which of the statements given above are correct?
The introduction of Standing Deposit Facility (SDF) in 2022 was primarily aimed at:
Which of the following statements about Cash Reserve Ratio (CRR) is/are correct? 1. CRR is maintained as a percentage of Net Demand and Time Liabilities 2. Banks earn interest on CRR deposits with RBI 3. CRR changes have multiplier effects on money supply 4. CRR is calculated on the last Friday of every month