Practice Controlling Credit (5.8.3) - Money and Banking – Basic Concepts
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Controlling Credit

Practice - Controlling Credit

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What does CRR stand for?

💡 Hint: Remember it relates to cash reserves.

Question 2 Easy

Is SLR related to liquid assets?

💡 Hint: Think about what keeps banks stable.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does CRR stand for?

Cash Reserve Ratio
Customer Reserve Ratio
Credit Reserve Ratio

💡 Hint: Look for the term related to banks' cash management.

Question 2

True or False: A higher bank rate means banks can borrow from the RBI at lower costs.

True
False

💡 Hint: Think about how higher rates impact borrowing.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Suppose the RBI raises the CRR and SLR simultaneously. Discuss how this action could manifest in the real economy, focusing on consumer behavior.

💡 Hint: Consider the relationship between credit availability and consumer confidence.

Challenge 2 Hard

Analyze the effects of a sudden drop in the repo rate on business investments and growth.

💡 Hint: Think about how interest rates influence business plans.

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