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 short 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 long 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 : Which of the following is not a tool of quantitative instruments of monetary policy?
 

Option 1: Open market operations
 

Option 2: Margin requirements
 

Option 3: Repo rate
 

Option 4: Bank rate