35. Money Markets & Monetary Policy

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What is the number of members in the Monetary Policy Committee (MPC)?

Which of the following is/are Money Market Instruments?

Treasury Bills

Commercial Papers

Certificate of Deposits

All of the above

What is the Bank Rate in relation to RBI and commercial banks?

RBI lends long-term loans to banks without requiring collateral or repurchase agreement

RBI lends short-term loans to banks with government securities as collateral

Commercial banks lend to customers

Banks borrow overnight funds from RBI

Interest rate risk falls under which risk category?

Credit risk

Liquidity risk

Market risk

Operational risk

Which among the following would most likely follow if the Reserve Bank of India effects selling of the securities?

The cash resources at the disposal of the commercial banks increase.

The cash resources at the disposal of the commercial banks get diminished.

The cash resources of the commercial banks remain unchanged

None of the above

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