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    Question

    Which of the following is/are related to Monetary Policy

    in India?? (I) Open market operations (OMOs) (II) Public debt (III) Bank Rate (IV) Public revenue
    A I & IV Correct Answer Incorrect Answer
    B I & II Correct Answer Incorrect Answer
    C II & III Correct Answer Incorrect Answer
    D I & III Correct Answer Incorrect Answer
    E III & IV Correct Answer Incorrect Answer

    Solution

    Bank Rate: It is the rate at which the RBI is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate is published under Section 49 of the RBI Act, 1934. This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes. Open Market Operations (OMOs): These include both, outright purchase and sale of government securities, for injection and absorption of durable liquidity, respectively. Public Revenue and Public debt are part of fiscal policy.

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