Practice Monetary Measures (5.6.1) - Inflation - ICSE 10 Economics
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Monetary Measures

Practice - Monetary Measures

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What does raising interest rates do to borrowing?

💡 Hint: Think about how loans work.

Question 2 Easy

What is the Cash Reserve Ratio (CRR)?

💡 Hint: Consider what banks must hold back.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What happens when the RBI raises interest rates?

Consumer spending increases
Consumer spending decreases
No effect

💡 Hint: Consider the decision of taking a loan.

Question 2

True or False: Increasing the Cash Reserve Ratio (CRR) means banks lend more.

True
False

💡 Hint: Think about what it means to reserve funds.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

If the RBI raises the interest rates by 1% and the inflation rate is at 8%, what is the economic impact likely to be in the short term?

💡 Hint: Think about supply and demand relationships.

Challenge 2 Hard

Consider a scenario where the CRR is increased from 4% to 6%. Analyze the effects on lending and liquidity in the banking sector.

💡 Hint: Consider the balance between reserves and available funds.

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