Physics · Monetary Policy Tools
Consider the following statements regarding the quantitative monetary tools of the RBI: 1. Open Market Operations (OMOs) directly affect the monetary base. 2. The Bank Rate is a long-term rate used to guide lending behavior. 3. The Marginal Standing Facility (MSF) rate is always lower than the Repo rate. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2 and 3
- 21 and 3 only
- 32 and 3 only
- 41 and 2 only✓
Correct answer
1 and 2 only
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