Practice - Monetary Measures
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Practice Questions
Test your understanding with targeted questions
What does raising interest rates do to borrowing?
💡 Hint: Think about how loans work.
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
What happens when the RBI raises interest rates?
💡 Hint: Consider the decision of taking a loan.
True or False: Increasing the Cash Reserve Ratio (CRR) means banks lend more.
💡 Hint: Think about what it means to reserve funds.
1 more question available
Challenge Problems
Push your limits with advanced challenges
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.
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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