Policy Rates and Tools — Prelims Questions

With reference to India's monetary policy framework, consider the following statements: 1. The Standing Deposit Facility (SDF) rate serves as the floor of the LAF corridor 2. Banks can access Marginal Standing Facility up to 2% of their NDTL 3. The Monetary Policy Committee meets eight times in a year 4. CRR balances maintained with RBI earn interest at the bank rate Which of the statements given above are correct?

Which of the following best describes the primary difference between repo rate and bank rate in India's current monetary policy framework?

Consider the following about the Statutory Liquidity Ratio (SLR): 1. It includes investments in government securities, gold, and cash 2. It can be used as collateral for borrowing from RBI 3. The current SLR requirement is 20% of NDTL 4. SLR securities earn returns for banks Which of the statements given above are correct?

The introduction of Standing Deposit Facility (SDF) by RBI in 2022 was primarily aimed at:

In the context of monetary policy transmission, which of the following factors can impede the effectiveness of policy rate changes?