Question : If the Reserve Bank of India reduces the cash reserve ratio(CRR), what will be its effect on credit creation?

Option 1: Increase in the credit

Option 2: Decrease credit creation

Option 3: Have no impact on credit creation

Option 4: Have no definite impact on credit creation

Question : Which one of the following is not an instrument of credit control in India?

Option 1: Rationing of credit

Option 2: Direct action

Option 3: Open market operations

Option 4: Variable cost reserve ratios

Question : Water tax is increased by 20% but its consumption is decreased by 20%. Then, the increase or decrease in the expenditure of money is:

Option 1: 5% decrease

Option 2: 4% decrease

Option 3: No change

Option 4: 4% increase

Question : Inflation is caused  by

Option 1: Increase in money supply and decrease in production

Option 2: increase in money supply

Option 3: increase in production

Option 4: decrease in prodution

Question : What is the bank rate?

Option 1: The rate at which the Central bank of a country advances loans to other banks in the country.

Option 2: The rate at which banks advance loans to customers.

Option 3: The rate at which banks lend among themselves.

Option 4: The rate at which banks lend to money lenders.