RBI Grade B Officer (General / DEPR / DSIM) 2021 · Question 217 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) While getting rid of the 14 day fixed repo, the RBI said it will operate a 14-day term repo/reverse repo operation at a variable rate that would be conducted to coincide with the……… maintenance cycle:

Monetary Policy

1. AA. Statutory Liquidity Ratio
2. BB. Cash Reserve RatioCorrect
3. CC. Cash Deposit Ratio
4. DD. Credit-Deposit Ratio
5. EE. None of the above