Question : During deflation, it is advisable to:

Option 1: Lower the bank rate and purchase of securities in the open market
 

Option 2: Increase the bank rate and purchase of securities in the open market
 

Option 3: Lower the bank rate and sale of securities in the open market

Option 4: Increase the bank rate and sale of securities in the open market

Question : ________________ is the rate at which the central bank lends money to commercial banks to meet their long term needs.
 

Option 1: Bank rate
 

Option 2: Repo rate
 

Option 3: Reverse repo rate
 

Option 4: Legal reserve reservation.
 

Question : ____________ is the rate at which the central bank lends money to commercial banks to meet their short term needs.
 

Option 1: Bank rate
 

Option 2: Repo rate
 

Option 3: Reverse repo rate
 

Option 4: Legal reserve reservation.
 

Question : To reduce credit availability in the economy, the Central bank may___

Option 1: Buy securities in the open market
 

Option 2: Sell securities in the open market
 

Option 3: Reduce reserve ratio

Option 4: Reduce the repo rate

Question : _____________________ refers to a method in which the central bank gives direction to other banks to give or not to give credit for certain purpose to particular sectors.
 

Option 1: Selective credit controls
 

Option 2: Open market operations
 

Option 3: Bank rate
 

Option 4: Repo rate