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Practice Questions
Test your understanding with targeted questions related to the topic.
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.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
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.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation