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Monetary Policy Questions

Practice 30 Monetary Policy questions with detailed answers and explanations. Free MCQs, PYQs, and mock test questions for NEET, JEE, GATE, SSC and more.

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30
Total Questions
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1
Easy
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29
Medium
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0
Hard
Practice by Exam:Economics(13)Indian Economy(8)General Studies(4)General Knowledge(2)General Awareness(1)Indian Polity & Economy(1)Economy(1)

About Monetary Policy — practice questions, PYQs & concepts

Monetary Policy is a frequently-tested topic on Economics, Indian Economy, General Studies. ExamTest.live currently lists 30 Monetary Policy questions spanning previous-year papers from 2026 to 2026, each with worked solutions and a step-by-step explanation. Use the filters on this page to focus on a specific exam, difficulty level or year — every answer key is free, no sign-up required.

Monetary Policy weight in competitive exams

Across our Monetary Policy question bank, the largest sources are Economics (13), Indian Economy (8), General Studies (4), General Knowledge (2) and General Awareness (1). Click any exam chip above to drill down to that exam-specific question set.

How to use this page

  • Start easy: 1 easy Monetary Policy questions are available — build fluency before moving up.
  • Target weak years: Use the year filter to focus on the most recent 2026 paper or older PYQs you have not attempted.
  • Time yourself: Every question shows the average solve time so you can benchmark your speed against other students.
  • Read every explanation: Even on questions you got right — the explanation often surfaces a faster approach you can reuse.

All Monetary Policy Questions(1–30 of 30)

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Q1mediummcqEconomicsWest Bengal Civil Services2026
0% accuracy
The monetary policy of India is framed by-
Q2mediummcqGeneral StudiesIndian Competitive Exams2026
0% accuracy
Which of the following cannot be called an anti-inflationary measure?
Q3mediummcqEconomicsGeneral Knowledge2026
0% accuracy
Which one of the following is not the anti-inflationary measure in India?
Q4mediummcqGeneral StudiesCompetitive Exams2026
0% accuracy
What is the type of foreign exchange rate system in India?
Q5mediummcqGeneral StudiesIndian Competitive Exams2026
0% accuracy
Repo rate and Reverse Repo rate are related to which of the following?
Q6mediummcqIndian EconomyIndian Competitive Exam2026
0% accuracy
Commercial banks are required to maintain a specific proportion of their net demand and time liabilities in liquid assets like cash, gold, or unencumbered securities. This is called:
Q7mediummcqEconomicsCompetitive Exam2026
0% accuracy
For quantitative credit control, the RBI uses which of the following instruments?
(i) Cash Reserve Ratio
(ii) Bank Rate
(iii) Open Market Operations
(iv) Margin requirements

Select your answer from the options below:
Q8mediummcqEconomicsCompetitive Exam2026
0% accuracy
If the Cash Reserve Ratio (CRR) is reduced by the RBI, its impact on credit creation will be to:
Q9mediummcqGeneral StudiesIndian Competitive Exams2026
0% accuracy
Which of the following is a qualitative tool of monetary policy?
Q10mediummcqEconomicsCompetitive Exam2026
0% accuracy
Monetary policy is controlled and regulated by which of the following entities?
Q11mediummcqEconomicsIndian Competitive Exams2026
Which among the following is a qualitative tool of monetary policy?
Q12easymcqEconomicsCompetitive Exam2026
In India the Repo rate is announced by
Q13mediummcqEconomicsIndian Competitive Exams2026
The RBI uses the following instruments for quantitative control of credit:
(i) Cash Reserve Ratio
(ii) Bank Rate
(iii) Open Market Operations
(iv) Margin Requirements

Choose your answers from:
Q14mediummcqEconomicsIndian Competitive Exams2026
The minimum interest rate of a bank below which it is not viable to lend is known as _______.
Q15mediummcqIndian EconomyGovernment Exams2026
The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called
Q16mediummcqEconomicsIndian Competitive Exams2026
Which among the following cannot be called an anti-inflationary measure?
Q17mediummcqIndian EconomyCompetitive Exam2026
Monetary policy is regulated by
Q18mediummcqIndian EconomyGovernment Exams2026
Deficit financing means that the government borrows money from the
Q19mediummcqEconomyMacroeconomics2026
India's foreign exchange rate system is
Q20mediummcqEconomicsPrepp2026
Reserve ratio and money supply have ________ relationship.
Q21mediummcqIndian Polity & EconomyIndian Competitive Exams2026
Repo rate and Reverse Repo rate are related with:
Q22mediummcqIndian EconomyCompetitive Exam2026
If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be
Q23mediummcqEconomicsCompetitive Exam2026
Which of the following was not listed as a short-term priority of the Reserve Bank of India (RBI) in the Annual Report of RBI, 2014-2015?
Q24mediummcqIndian EconomyWBCS Prelims2026
In India, the Repo rate is announced by:
Q25mediummcqIndian EconomyCompetitive Exams2026
Which bank supported the demonetization in India?
Q26mediummcqIndian EconomySSC CGL2026
In August 2017, RBI Constituted an Internal Study Group to study the MCLR. This was done to ________.
Q27mediummcqEconomicsCompetitive Exam2026
The full form of MPC is __________.
Q28mediummcqGeneral AwarenessPractice Test2026
Which organisation fixes the repo rate in India?
Q29mediummcqGeneral KnowledgePrepp2026
Which of the following banks is in charge of India’s banking and monetary system?
Q30mediummcqGeneral KnowledgePrepp2026
Selling of bonds by the RBI will cause money supply to __________.

Frequently Asked Questions

How many Monetary Policy questions are on ExamTest.live?▼
We have 30 Monetary Policy questions spread across 1 pages, covering easy, medium, and hard difficulty levels with detailed explanations.
Are Monetary Policy MCQs free?▼
Yes. All Monetary Policy questions, answers, and explanations on ExamTest.live are completely free. No account or subscription required.
Which exams include Monetary Policy questions?▼
Monetary Policy questions are commonly asked in Economics, Indian Economy, General Studies, General Knowledge, General Awareness. You can filter by exam using the links above.
How do I practice Monetary Policy questions effectively?▼
Start with easy questions to build confidence, then tackle medium and hard ones. Use the filter buttons to sort by difficulty. Reveal the answer only after attempting each question, and read the explanation thoroughly.