Economics · Economy
Which of the following statements about the instruments of monetary policy are correct? 1. An increase in SLR reduces lendable resources of banks, thereby contracting credit in the economy. 2. When RBI purchases government securities through OMO, it injects liquidity into the banking system. 3. The Repo Rate is the rate at which commercial banks lend to the RBI overnight. 4. Moral Suasion is a qualitative tool where RBI persuades banks to follow specific credit policies without legal compulsion. Select the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2, 3 and 4
- 22, 3 and 4 only
- 31 and 3 only
- 41, 2 and 4 only✓
Correct answer
1, 2 and 4 only
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