AI Generated: repo rate (medium) Mock Test
This AI Generated: repo rate (medium) mock test follows the AI Practice pattern across 10 questions. You get 10 minutes for 10 marks, with no negative marking, in a timed interface that matches the real exam. Every question comes with a worked solution, and your result breaks the score down topic by topic so you can see where the marks were lost.
Duration
10 mins
Questions
10 MCQs
Total Marks
10 pts
Negative
0 per wrong
Topics Covered in This Paper
Sample Questions
Q1.What is the primary operational objective of the Reserve Bank of India when it increases the repo rate?
- ATo encourage commercial banks to expand credit to the industrial sector
- BTo increase the cost of borrowing for commercial banks to curb liquidity and inflation
- CTo directly influence the long-term sovereign bond yields in the secondary market
- DTo decrease the foreign exchange reserves held by domestic commercial banks
Q2.Under the Liquidity Adjustment Facility framework of the RBI, what type of collateral is primarily pledged by commercial banks to secure funds at the repo rate?
- ACorporate bonds rated AAA or equivalent by certified credit rating agencies
- BEligible government securities including central and state government bonds and treasury bills
- CForeign currency assets held in Nostro accounts with designated international banks
- DGold bullion deposited with the central bank under the Monetisation Scheme
Q3.How does a transmission lag typically affect the relationship between changes in the RBI repo rate and retail lending rates charged by commercial banks?
- ARetail lending rates adjust instantly and symmetrically with every repo rate announcement
- BRetail rates adjust with a delay because banks take time to reprice their existing deposits and loans
- CRetail lending rates move in the opposite direction of the repo rate due to statutory liquidity rules
- DRetail rates remain completely insulated from repo rate changes due to external benchmark guidelines
Before you begin
The test will auto-submit when the timer runs out.
Each correct answer carries +1 marks.
Each wrong answer carries -0 marks.
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Disclaimer: The questions provided here are extracted and digitized from previous year papers using automated processes. They may contain typographical errors, formatting issues, or minor variations from the actual examination paper. While we have done our best to verify the accuracy of the official answer keys, discrepancies may occasionally exist. Please refer to the official commission website for the most authentic paper.
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FAQ
Frequently asked questions
Frequently Asked Questions
- How many questions are in the AI Generated: repo rate (medium) mock test?
- This paper has 10 multiple-choice questions carrying 10 marks in total, to be attempted in 10 minutes.
- Is the AI Generated: repo rate (medium) mock test free to attempt?
- Yes. You can attempt the full paper online for free on AI Test Planet, and see your score and correct answers immediately after submitting.
- Does this paper have negative marking?
- No, there is no negative marking on this paper, so an attempted guess costs you nothing.
- Are solutions and explanations available?
- Yes. After you submit, every question shows the correct answer with a step-by-step explanation, along with a topic-wise breakdown of your performance.