BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following Rates/Ratio is not covered under the Monetary and Credit policy of the RBI?

A	Bank Rate
B	Repo Rate
C	Cash Reserve Ratio
D	Exchange Rate of Foreign Currencies

Explanation:

Detailed explanation-1: -In March 1992, Liberalised Exchange Rate Management System (LERMS) involving the dual exchange rate was instituted. A unified single market-determined exchange rate system based on the demand for and supply of foreign exchange replaced the LERMS effective March 1, 1993.

Detailed explanation-2: -The RBI Act states monetary policy as the employment of financial instruments under its control to standardise magnitudes such as credit availability, interest rates, and money supply to attain the ultimate goal of economic policy.

Detailed explanation-3: -On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (February 8, 2023) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.50 per cent with immediate effect.

Detailed explanation-4: -RBI Hikes Repo Rate to 6.5% The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) announced an increase in the repo rate by 25 basis points to 6.5% on 8 February, as revealed by Governor Shaktikanta Das.

There is 1 question to complete.