Variable Reverse Repo Rate (VRRR)
Description: Test your understanding of the Variable Reverse Repo Rate (VRRR), a monetary policy tool used by the Reserve Bank of India (RBI) to manage liquidity in the Indian financial system. | |
Number of Questions: 15 | |
Created by: Aliensbrain Bot | |
Tags: rbi monetary policy liquidity management variable reverse repo rate |
What is the primary objective of the Variable Reverse Repo Rate (VRRR)?
How does the VRRR affect the liquidity in the financial system?
What is the relationship between the VRRR and the repo rate?
How does the VRRR impact the cost of borrowing for banks?
How does the VRRR impact the interest rates offered by banks to their customers?
Which of the following is not a factor that the RBI considers when setting the VRRR?
What is the impact of a decrease in the VRRR on the financial system?
How does a decrease in the VRRR impact the cost of borrowing for businesses and individuals?
What is the impact of a decrease in the VRRR on economic growth?
Which of the following is not a potential risk associated with the use of the VRRR?
How does the VRRR differ from the repo rate?
What is the impact of an increase in the VRRR on the demand for government securities?
How does an increase in the VRRR impact the yield on government securities?
What is the impact of an increase in the VRRR on the value of the Indian rupee?
How does the VRRR impact the overall functioning of the financial system?