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 : The central bank may________ to discourage credit in the economy.

Option 1: decrease CRR

Option 2: buy securities in an open market

Option 3: reduce SLR

Option 4: increase bank rate

Question : It refers to a system in which foreign exchange rate is determined by market forces in central bank influence the exchange rate.
 

Option 1: Fixed exchange rate system
 

Option 2: Flexible exchange rate system
 

Option 3: Managed floating rate system
 

Option 4: None of the above.
 

Question : Which of the following exchange rate systems allows for fluctuations in currency values but with some intervention by the central bank?

Option 1: Floating exchange rate
  

Option 2: Fixed exchange rate
   

Option 3: Pegged exchange rate

Option 4: Managed float exchange rate

Question :  ___________ is the rate at which the central bank borrows money from commercial banks.

Option 1: Repo rate

Option 2: Reverse repo rate

Option 3: Cash reserve ratio (CRR)

Option 4: Statutory liquidity ratio (SLR)