GS I›E-2.1.1›Monetary policy tools — repo, CRR, SLR, OMO

Monetary policy tools — repo, CRR, SLR, OMO

E-2.1.1Core
0%

0/5 stages complete · 0% coverage

Exam Strategy

Direct factual questions dominate: RBI definitions, tool mechanics, and rate impacts. Examiners test understanding of which tool targets liquidity vs. credit vs. inflation. Recent trend shows focus on reverse repo, MSF, and corridor framework under Flexible Inflation Targeting. Avoid confusing CRR reduction with RRR; understand transmission lag effects.

High-yield hooks
1

Repo = liquidity injection; reverse repo = liquidity absorption

2

CRR locked in vaults; SLR in securities — both reduce lendable funds

3

OMO is surgical: buy securities to expand, sell to contract

4

Policy rate corridor: repo ceiling, reverse repo floor, MSF above

5

CRR + SLR together = reserve requirements; only CRR is variable

Coverage — 0/10 done
0%
SCANECONOMY/MONETARY-POLICYECONOMY/RBI-OPERATIONSCURRENT-AFFAIRS/INFLATION-CONTROL