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 : ____________________ refers to sale and purchase of securities in the open market by the central bank.
 

Option 1: Bank rate
 

Option 2: Repo rate
 

Option 3: Reverse repo rate
 

Option 4: Open market operations.
 

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 : The Central Bank may reduce Cash Reserve Ratio 
 

Option 1: To encourage investment in the economy 
 

Option 2: To decrease the investment in economy  
 

Option 3: To increase the exchange rate 
 

Option 4: To decrease the exchange rate 
 

Question : Which of the following measures can be adopted by the central bank to control credit in an economy?

Option 1: Changing the statutory liquidity ratio (SLR)

Option 2: Changing the cash reserve ratio (CRR)
 

Option 3: Changing the repo rate

Option 4: All of the above