Question : The foreign trade effect suggests that an increase in the price level:

Option 1: Increases imports and decreases exports
 

Option 2: Decreases imports and increases exports
 

Option 3: Increases both imports and exports

Option 4: Decreases both imports and exports

Question : By increasing the tax burden on the households, the government intends to:

Option 1: correct the situation of deficient demand
 

Option 2: correct the situation of the inflationary gap
 

Option 3: correct the situation of excess demand

Option 4: both (a) and (c)

Question : Legal reserve requirement involves-
 

Option 1: Cash reserve ratio
 

Option 2: Statutory liquidity ratio 
 

Option 3: Both A and B
 

Option 4: Neither A and B.
 

Question : What is the full form of CRR?

Option 1: Cash Reserve Ratio

Option 2: Credit Reserve Ratio
 

Option 3: Currency Reserve Ratio

Option 4: None of the above

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