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  9. Q214

RBI Grade B Officer (General / DEPR / DSIM) 2021 · Question 214 of 260

- Read the passage given below and answer the following questions The Reserve Bank of India (RBI) adopted a new liquidity management framework in which there would be no fixed daily liquidity injection operations, but the central bank would act whenever the banking system requires money. The ______ will remain the operating target of the monetary policy, the RBI said, which means it will ensure enough liquidity to anchor the call rate at around the repo rate. (This is a recreated passage and not the exact one asked in the exam) Which new liquidity management initiative has been adopted by RBI and also discussed in the passage?

Monetary Policy

  1. AA. Open Market Operation
  2. BB. Long-Term Repo OperationCorrect
  3. CC. Long-Term Reverse Repo Operation
  4. DD. FX Swaps
  5. EE. All of the above

Answer: B. B. Long-Term Repo Operation

Official answer key verified. Detailed explanation coming soon.

Source: RBI Grade B Phase 2 2021 Economic and Social Issues recollected questions with answer key (EduTap compilation) · memory-based

← Q213View full paper (260 questions)Q215 →

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