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Questions › JNU › JNU SSS 2019 › Q31
1 markMacroeconomics › Money supply and the banking multiplier › Central bank instruments and monetary policy toolsModerateabout 1 min

JNU SSS 2019 Question 31: Money supply and the banking multiplier

Which of the following would have inflationary effect on the economy?

I. RBI releasing new bonds in the market

II. RBI decreasing the SLR

III. RBI increasing the Bank Rate

IV. Abolition of CRR

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Money supply and the banking multiplier has come up 74 times in 7 exams since 2005.

What this question tests

This question is on Central bank instruments and monetary policy tools, part of Money supply and the banking multiplier in Macroeconomics.

The tools a central bank uses to expand or contract money and credit.

TestStop has 15 past-paper questions on this subtopic.

Practise Money supply and the banking multiplierMore on Central bank instruments and monetary policy tools

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Question from the JNU SSS 2019 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.