CDS Economics
Money Banking Inflation — Quiz
20 Questions · No Negative Marking
Question 1
If the RBI increases the Repo Rate, the expected impact is: (CDS PYQ)
AMoney supply increases, leading to higher inflation
BCost of borrowing falls, stimulating more investment
CCost of borrowing rises, helping to control inflation
DBanks reduce their lending rates for retail customers
Question 2
If RBI increases CRR, the effect on the banking system is: (CDS PYQ)
ABanks have more funds to lend, expanding money supply
BBanks must keep more cash with RBI, reducing lendable resources
CBanks earn higher interest on their CRR balances
DGovernment borrowing capacity automatically increases
Question 3
Which measure best captures inflation at the consumer/retail level? (CDS PYQ)
AWholesale Price Index (WPI)
BConsumer Price Index (CPI)
CGDP Deflator
DProducer Price Index (PPI)
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