Question

    Identify the option that does NOT represent an instrument of RBI's monetary policy.

    A Budget rate Correct Answer Incorrect Answer
    B Open Market Operations Correct Answer Incorrect Answer
    C Cash Reserve Ratio Correct Answer Incorrect Answer
    D Bank rate Correct Answer Incorrect Answer

    Solution

    Instruments of RBI's monetary policy include Bank rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), and Open Market Operations (OMO). 'Budget rate' is not an instrument used by the RBI.

    Practice Next