{"id":91319,"date":"2025-06-01T10:53:17","date_gmt":"2025-06-01T10:53:17","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91319"},"modified":"2025-06-01T10:53:17","modified_gmt":"2025-06-01T10:53:17","slug":"with-reference-to-indian-economy-consider-the-following-1-bank-ra","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/","title":{"rendered":"With reference to Indian economy, consider the following:\n  1. Bank ra"},"content":{"rendered":"<p>With reference to Indian economy, consider the following:<\/p>\n<ul>\n<li>1. Bank rate<\/li>\n<li>2. Open market operations<\/li>\n<li>3. Public debt<\/li>\n<li>4. Public revenue<\/li>\n<\/ul>\n<p>Which of the above is\/are component\/components of Monetary Policy?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2, 3 and 4&#8243; option3=&#8221;1 and 2&#8243; option4=&#8221;1, 3 and 4&#8243; correct=&#8221;option3&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2015<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2015.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2015\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct option is C (1 and 2). Bank rate and Open Market Operations are standard instruments of Monetary Policy.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Monetary policy is the policy adopted by the central bank of a country to control the money supply and interest rates to promote macroeconomic stability.<br \/>\n&#8211; Instruments of monetary policy include quantitative measures like Bank Rate (discount rate), Open Market Operations (OMOs), Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate.<br \/>\n&#8211; Bank rate (Statement 1) is the rate at which the central bank lends money to commercial banks without any security.<br \/>\n&#8211; Open market operations (Statement 2) involve the buying and selling of government securities by the central bank in the open market to control liquidity.<br \/>\n&#8211; Public debt (Statement 3) and public revenue (Statement 4) are components of Fiscal Policy, which relates to government spending and taxation. Fiscal policy is formulated and implemented by the government, not the central bank.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nMonetary policy primarily targets inflation and growth by influencing the cost and availability of money and credit in the economy. Fiscal policy influences aggregate demand through government expenditure and revenue. In India, the Reserve Bank of India (RBI) is responsible for formulating and implementing monetary policy.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public revenue Which of the above is\/are component\/components of Monetary Policy? [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2, 3 and 4&#8243; option3=&#8221;1 and 2&#8243; option4=&#8221;1, 3 and 4&#8243; correct=&#8221;option3&#8243;] This question was previously asked in UPSC IAS &#8211; 2015 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to Indian economy, consider the following:\n  1. Bank ra\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/#more-91319\">Detailed Solution<span class=\"screen-reader-text\">With reference to Indian economy, consider the following:<br \/>\n  1. Bank ra<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1443,1120,1190],"class_list":["post-91319","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1443","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to Indian economy, consider the following:  1. Bank ra<\/title>\n<meta name=\"description\" content=\"The correct option is C (1 and 2). Bank rate and Open Market Operations are standard instruments of Monetary Policy. - Monetary policy is the policy adopted by the central bank of a country to control the money supply and interest rates to promote macroeconomic stability. - Instruments of monetary policy include quantitative measures like Bank Rate (discount rate), Open Market Operations (OMOs), Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate. - Bank rate (Statement 1) is the rate at which the central bank lends money to commercial banks without any security. - Open market operations (Statement 2) involve the buying and selling of government securities by the central bank in the open market to control liquidity. - Public debt (Statement 3) and public revenue (Statement 4) are components of Fiscal Policy, which relates to government spending and taxation. Fiscal policy is formulated and implemented by the government, not the central bank.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to Indian economy, consider the following:  1. Bank ra\" \/>\n<meta property=\"og:description\" content=\"The correct option is C (1 and 2). Bank rate and Open Market Operations are standard instruments of Monetary Policy. - Monetary policy is the policy adopted by the central bank of a country to control the money supply and interest rates to promote macroeconomic stability. - Instruments of monetary policy include quantitative measures like Bank Rate (discount rate), Open Market Operations (OMOs), Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate. - Bank rate (Statement 1) is the rate at which the central bank lends money to commercial banks without any security. - Open market operations (Statement 2) involve the buying and selling of government securities by the central bank in the open market to control liquidity. - Public debt (Statement 3) and public revenue (Statement 4) are components of Fiscal Policy, which relates to government spending and taxation. Fiscal policy is formulated and implemented by the government, not the central bank.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:53:17+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to Indian economy, consider the following:  1. Bank ra","description":"The correct option is C (1 and 2). Bank rate and Open Market Operations are standard instruments of Monetary Policy. - Monetary policy is the policy adopted by the central bank of a country to control the money supply and interest rates to promote macroeconomic stability. - Instruments of monetary policy include quantitative measures like Bank Rate (discount rate), Open Market Operations (OMOs), Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate. - Bank rate (Statement 1) is the rate at which the central bank lends money to commercial banks without any security. - Open market operations (Statement 2) involve the buying and selling of government securities by the central bank in the open market to control liquidity. - Public debt (Statement 3) and public revenue (Statement 4) are components of Fiscal Policy, which relates to government spending and taxation. Fiscal policy is formulated and implemented by the government, not the central bank.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/","og_locale":"en_US","og_type":"article","og_title":"With reference to Indian economy, consider the following:  1. Bank ra","og_description":"The correct option is C (1 and 2). Bank rate and Open Market Operations are standard instruments of Monetary Policy. - Monetary policy is the policy adopted by the central bank of a country to control the money supply and interest rates to promote macroeconomic stability. - Instruments of monetary policy include quantitative measures like Bank Rate (discount rate), Open Market Operations (OMOs), Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate. - Bank rate (Statement 1) is the rate at which the central bank lends money to commercial banks without any security. - Open market operations (Statement 2) involve the buying and selling of government securities by the central bank in the open market to control liquidity. - Public debt (Statement 3) and public revenue (Statement 4) are components of Fiscal Policy, which relates to government spending and taxation. Fiscal policy is formulated and implemented by the government, not the central bank.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:53:17+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/","name":"With reference to Indian economy, consider the following: 1. Bank ra","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:53:17+00:00","dateModified":"2025-06-01T10:53:17+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is C (1 and 2). Bank rate and Open Market Operations are standard instruments of Monetary Policy. - Monetary policy is the policy adopted by the central bank of a country to control the money supply and interest rates to promote macroeconomic stability. - Instruments of monetary policy include quantitative measures like Bank Rate (discount rate), Open Market Operations (OMOs), Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate. - Bank rate (Statement 1) is the rate at which the central bank lends money to commercial banks without any security. - Open market operations (Statement 2) involve the buying and selling of government securities by the central bank in the open market to control liquidity. - Public debt (Statement 3) and public revenue (Statement 4) are components of Fiscal Policy, which relates to government spending and taxation. Fiscal policy is formulated and implemented by the government, not the central bank.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-indian-economy-consider-the-following-1-bank-ra\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to Indian economy, consider the following: 1. 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